A risky business can sound the death knell

By Dawn O’Leary, Davis Burton Sellek

As the layers of the onion peeled away it became clear that the News of the World was never going to recover from the phone hacking scandal. The morale code of business ethics had been crossed and there was no going back. And we all know what happened next.

Whilst the small and medium sized business owner is unlikely to face a scandal of this scale, every business faces some degree of risk. Even when everything is planned to the nth degree a business could close due to events beyond its control. So it’s important to identify the risk your company faces and counter it to be successful.

The type of risk varies but can be anything from overhead costs, cost of equipment, sales volume, taxes, staff theft, competitors, local economy, shrinking markets, obsolete products/services and more. Other risks may include data loss, natural disasters, property theft, machine breakdown and cash flow all of which can lead to business closure.

Failure to obtain the correct licenses may also put the business at risk. Embezzlement, liability losses, public liability, a key shareholder, who becomes ill, can all hinder a small business. Cash is king – inaccurate cash flow is the biggest killer. A business may make bad business decisions as a result and saving costs recruiting unqualified key employees is a risky strategy too.

Your accountant can provide guidance on potential risk factors. Ultimately though, the onus is on the business owner to identify the risks and put in place good risk management techniques. Either way, this will make for a successful business built on well-informed business decisions.

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Dawn O’Leary, Partner

Davis Burton Sellek, The Galleries Charters Road Sunningdale Ascot Berkshire SL5 9QJ
01344 620495
www.davisburtonsellek.com

For more information, Marketing Manager Luci Allison 07795 414904

Notes to Editors:

About Davis Burton Sellek
Davis Burton Sellek Chartered Accountants are dedicated to preserving the wealth of clients, whether they be individual or corporate, onshore or offshore and have been doing so for over 60 years from offices in Sunningdale, Berkshire. Advice is refreshingly bespoke and personalised with hands-on Partners who support clients in the good and lean times.

Registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

For more information about Davis Burton Sellek, visit www.davisburtonsellek.com or call Dawn O'Leary on 01344 620495. Follow us on http://twitter.com/dbsellek