One thing I love about running The Weekly Deals Free Sheet is the wide variety of new people I get to connect with, speak with and spend time with every week. We invariably chat about their business requirements be it expansion, disposal, mergers, acquisitions or new pastures entirely. One thing this week however has been the large number of enquiries from businesses requiring new capital, new financing, angel or VC finance or in some of the worst cases a more expedient than is usual disposal. The trend amongst disposals is for these businesses is to be sold at a fraction of their market value. At the time of writing I have had 33 such enquiries in the past week alone.
This sort of event leads my enquiring mind into looking for the root cause of such an event.
Could it be that we really are back in a recession? Could the lovely Brexit be having more of an effect than we first thought on the small business? Could it be underlying market change? Could it also be a stubborn sense of “I know how to run my business better than anyone else” that is a common theme amongst many small business owners?
Certainly this is most difficult one to analyse. However if I look at the first three of my suggestions above they have strong possibilities. I would have to say that issues surrounding Brexit causing recession like symptoms if not a full blown recession would sit favourite with my previous experiences around the time of recession. Underlying market change, well things change and people change, the way we do things, the way we work and the way e behave changes constantly on a global scale.
This leads me on to my final suggestion. The stubborn sense of “I know how to run my business better than anyone else” that is a common theme amongst many small business owners. If we combine this with underlying market change and maybe even as much as strong hints of Brexit and recession then, yes, this is the strongest possibility to my mind. You see many small business owners are reluctant to make changes to the way they do things on the basis of “I have always done it this way”. Even if that way does not keep pace with the market or changing customer needs, wants and demands. This can have onward effects to a business, a loss of customers, a loss of a share of a market, a failure to capitalise on business opportunities which in turn could increase turnover or decrease operational expenditure.
33 requirements for new finance or an emergency disposal in one week is very heavy going. So my bets are going on a strong combination of all four of my headline reasons for this sudden upsurge. One thing for sure is that if this trend that has started continues, it offers some lovely opportunities for small business “buy to build” opportunities as well as opportunities for finance providers to increase both ROI and fee income. For those of a “predatory” nature this is only a blip at the moment but it could offer some excellent opportunities. If this trend continues this could have further repercussions on the general market. This is a subject I will cover in more detail on these pages should the need and want arise.
One thing is for sure I am very interested and taking a keen interest in how this current situation plays out.