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gruffydd

Called By An Md This Evening

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Just been speaking to the MD of a company who basically wants me to help revitalise their PR and DM activities. What turned into a business call turned into an outpouring of worry - the firm had expanded too fast, orders had collapsed 50% over the last couple of months, debts were mounting, there was a strong whiff of recession in the air, etc. B***** H*** it was depressing. I'm getting this alot at the moment. Perhaps I should become a counsellor? Most business people I'm in contact with at the moment know that something's up.

Edited by gruffydd

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"the firm had expanded too fast"

I think that has been the case for many firms recently, in particular retailers. They have seen boom and decided to cash in just as the boom has come to an end. If you look at the current reports, they are heading back towards average long-term growth which without the expansion would have been quite adequate.

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Just been speaking to the MD of a company who basically wants me to help revitalise their PR and DM activities.

is that Danger Mouse activities ?

it was depressing. Perhaps I should become a counsellor?

not the best idea. maybe you should see one instead ?

its not uncommon. expanding too fast was the demise of leading fitness maker bullworker.

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the firm had expanded too fast

Reminds me of 2 quotes.. non business quotes, which really are about business;

- Anything which uncontrollably grows is a cancer (from my father)

- We're lucky that we're a three-piece and that was totally intentional. I wanted it this way so there would be no need for bloody lead singers or keyboard players or anything else. It was to keep it as tight as possible so that we could actually stand more chance of making a living (from a band I've followed for years - The Hamsters)

My interpretation

- You don't grow the company to fill the orders, because those orders may dry out and kill you. Instead you grow to fill your needs (like normal cells).

- You don't need "hangers on" (the Secretary to siting in the reception, the PR dept, the printer/fax people), they take away profit that you could be earning.

Friends joke about me working for a company with half a dozen people which doesn't grow in size by 50% each year... one day they will learn what I know B)

Edited by beerhunter

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Too much debt, not enough recurring business.

The bubble is bursting

It is my understanding that MDs of failed companies (either through their own fault or external factors) still come out well with loads of money in their personal bank account and a nice fat pension in place but the poor workers who actually do the work lose their jobs and get kicked out onto the street with nothing apart from the possible meagre statutary redundancy money if they are lucky.

Edited by penbat1

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Things are looking increasingly grim. 2-3 of actual recession, 5-6 years of doom and gloom sentiment, at least.

Not good. Sure HPC will allow us to buy a house, so long as we don't get hurt in these unpredictable times.

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Things are looking increasingly grim. 2-3 of actual recession, 5-6 years of doom and gloom sentiment, at least.

Not good. Sure HPC will allow us to buy a house, so long as we don't get hurt in these unpredictable times.

Being hurt in these unpredicatable times is inevitable. Those of us who saw this coming several years ago always knew it was going to be accompanied by a recession - and that it would be a bad one.

There will be, to use that charming expression now used about wars, collateral damage. No-one will be immune (apart from a lot of public sector workers of course).

You need to blame this government. It is obvious that our economic 'success' was built on debt and spiralling house prices. This was obvious as long ago as 2002. But the tossers were happy to preside over 50 year low interest rates and watch the country borrow its way into slavery - all to keep an illusion going that all was well.

The biggest recession and slump since the 1930s will soon be upon us - and this current government are to blame for it. The public sector has become a monster gobbling up ever-increasing tax revenues. This will be an ongoing drain on the economy for generations - it's easy to employ an extra million people - not so easy to get rid of them.

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Being hurt in these unpredicatable times is inevitable. Those of us who saw this coming several years ago always knew it was going to be accompanied by a recession - and that it would be a bad one.

There will be, to use that charming expression now used about wars, collateral damage. No-one will be immune (apart from a lot of public sector workers of course).

You need to blame this government. It is obvious that our economic 'success' was built on debt and spiralling house prices. This was obvious as long ago as 2002. But the tossers were happy to preside over 50 year low interest rates and watch the country borrow its way into slavery - all to keep an illusion going that all was well.

The biggest recession and slump since the 1930s will soon be upon us - and this current government are to blame for it. The public sector has become a monster gobbling up ever-increasing tax revenues. This will be an ongoing drain on the economy for generations - it's easy to employ an extra million people - not so easy to get rid of them.

Marina: You have hit the nail on the head. I TOTALLY agree with everything you say - you took the words out of my mouth. Excellent, Fabulous Post.

Edited by eric pebble

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Being hurt in these unpredicatable times is inevitable. Those of us who saw this coming several years ago always knew it was going to be accompanied by a recession - and that it would be a bad one.

I'm putting my money where my mouth is and I'm going to use the next few years to re-train. Working in soft skilled IT environment, if it isn't the coming recession that will take my job there will inevitably be a recession one day that does. Now's the time to get a 'useful' skill.

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I've been a bear for a long time, long before I joined this forum.

However, I feel sorry for those who will get hurt. Some will have put themselves in harms way, so for them I slightly less sorry, but even so the vast majority of people (even BLT's) are guilty of no more than trying to make a living. The crooks will probably get away with it.

Nor do I try to blame anyone. We are all responsible for our own actions, and again, so huge is this bubble, very few of us are completely innocent of contributing to its' inflation, even if all we did was eat out rather more than previously!

True the government has made mistakes, but they were trying to avoid a post 9/11 recession for very real reasons. Also, it has been said on this forum, by many, that the government cannot really change the markets. Well if that is true, they cannot be held totally responsible for the coming pain.

We cannot have both ways.

I'm putting my money where my mouth is and I'm going to use the next few years to re-train. Working in soft skilled IT environment, if it isn't the coming recession that will take my job there will inevitably be a recession one day that does. Now's the time to get a 'useful' skill.

Good luck. I wish you the very best. Nice to see a positive approach to adversity.

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I'm putting my money where my mouth is and I'm going to use the next few years to re-train. Working in soft skilled IT environment, if it isn't the coming recession that will take my job there will inevitably be a recession one day that does. Now's the time to get a 'useful' skill.

What are you thinking of re-training as?

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True the government has made mistakes, but they were trying to avoid a post 9/11 recession for very real reasons. Also, it has been said on this forum, by many, that the government cannot really change the markets. Well if that is true, they cannot be held totally responsible for the coming pain.

We cannot have both ways.

Having it both ways is precisely what this government has tried to have. They have employed more and more public sector workers - because that is what Labour governments want - they want everyone to be employed by the state. But, in the modern world they cannot be a true Socialist party. So they have tried to have it both ways. Exist in a capitalist world but with the socialist ethos of getting as many people as possible employed by the state. Why else have they employed more than a million extra people directly and a further half a million if you include state funded private initiatives.

The government cannot change markets - true. But who else has the power to change anything? Only them. When they saw our nation going further and further into debt they should have acted. But they didn't. And that is why they bear responsibility for what has happened. If you take the power, you take the resposibility.

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You need to blame this government.

Great post and I agree with you. But I was wondering how much the government could really have done.

Could they have kept interes rates high with the US and EU rates at stupidly low levels? Granted they should have moved to discourage property speculation at an earlier stage, but bubbles are notoriously difficlt to predict. I don't think any of us expected it to get this bad.

I just wonder how much economic influence the government really has in the brave new globalised world.

I agree with you about the public sector non-jobs though, SIPPS is outragous and so are 'key-worker' loans.

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There's a 15 month waiting list in my part of the World to see a trained therapist. Something to consider.

What sort of therapist? Where I live, if you have £25 spare, you can see one of thousands of every sort of therapist you can think of - from hypnotherapists, aromatherapists, counsellors, reiki practicioners, indian head massagers etc etc etc.

The list is endless and I have observed that the only people who seem to make money out of these activities are the people that get mugs to part with a few grand to go on a course.

Great post and I agree with you. But I was wondering how much the government could really have done.

Could they have kept interes rates high with the US and EU rates at stupidly low levels? Granted they should have moved to discourage property speculation at an earlier stage, but bubbles are notoriously difficlt to predict. I don't think any of us expected it to get this bad.

I just wonder how much economic influence the government really has in the brave new globalised world.

I agree with you about the public sector non-jobs though, SIPPS is outragous and so are 'key-worker' loans.

Agree they could not have kept IRs high at a time of low US and EU rates. But, in the EU people have not 'taken advantage' of the rates to saddle themselves with massive mortgages. People in the EU have not MEWed to the nth degree to fund an unsustainable lifestyle.

It might have been unpopular but sometimes you have to take unpopular decisions. The biggest mistake Thatcher's government made was abandoning credit controls. Labour should have re-introduced them to keep HPI in line with the general inflation in the economy. GB said when he came office he would not preside over a housing boom. Well he has and done nothing about it - apart from milk it for taxes of course.

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Anything which uncontrollably grows is a cancer

I started my own business in 1997 and have never seen the point in my expanding.

Other business owners I know have expanded rapidly. I often feel inadequate when taliking to them, that is, until reality surfaces. I know some are really struggling and worried. The reason I've never expanded is that when I very carefuly work - out the potential extra profit that would follow from expansion it always adds up to a negligible amount or a reduction in net profit. The value of the business might increase by expanding, but Id rather not have the worry and stress.

The owners that really irritate me (and Im sure why Im irritated by them) are those that are for - ever optimistic, forever expanding.

Did anyone see 'risking it all' on CH 4 last night? The plonkers spent £13000 on the sound system for thier salon! £500 on a sound system would have been quite adequate! I often come accross such plonkers who have no concept of the term 'value added'.

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What sort of therapist? Where I live, if you have £25 spare, you can see one of thousands of every sort of therapist you can think of - from hypnotherapists, aromatherapists, counsellors, reiki practicioners, indian head massagers etc etc etc.

The list is endless and I have observed that the only people who seem to make money out of these activities are the people that get mugs to part with a few grand to go on a course.

Agree they could not have kept IRs high at a time of low US and EU rates. But, in the EU people have not 'taken advantage' of the rates to saddle themselves with massive mortgages. People in the EU have not MEWed to the nth degree to fund an unsustainable lifestyle.

It might have been unpopular but sometimes you have to take unpopular decisions. The biggest mistake Thatcher's government made was abandoning credit controls. Labour should have re-introduced them to keep HPI in line with the general inflation in the economy. GB said when he came office he would not preside over a housing boom. Well he has and done nothing about it - apart from milk it for taxes of course.

So by failing to reintroduce credit controls this government have effectively handed control of the economy to the bankers and the markets.

It's unbelivable that a Labour government could do this. The tories are used to champion the markets and the Labour party are used to be for wealth equality. The electorate had a choice. No wonder nobody votes anymore.

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So by failing to reintroduce credit controls this government have effectively handed control of the economy to the bankers and the markets.

It's unbelivable that a Labour government could do this. The tories are used to champion the markets and the Labour party are used to be for wealth equality. The electorate had a choice. No wonder nobody votes anymore.

You're right - it is unbelievable what this Labour government have done. I am by instinct a socialist though recognise that in the real world it has never worked. I don't think capitalism is any better - maybe it's worse.

But I do know the founders of the Labour party will be spinning in their graves looking at what the party has become. I think people like Blair and Brown are actually repulsive.

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I'm putting my money where my mouth is and I'm going to use the next few years to re-train. Working in soft skilled IT environment, if it isn't the coming recession that will take my job there will inevitably be a recession one day that does. Now's the time to get a 'useful' skill.

What skills are you thinking of?

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It is my understanding that MDs of failed companies (either through their own fault or external factors) still come out well with loads of money in their personal bank account and a nice fat pension in place but the poor workers who actually do the work lose their jobs and get kicked out onto the street with nothing apart from the possible meagre statutary redundancy money if they are lucky.

I believe it is also common practice for bonuses to be paid to certain 'key' people just prior to a company going into administration.

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I started my own business in 1997 and have never seen the point in my expanding.

Other business owners I know have expanded rapidly. I often feel inadequate when taliking to them, that is, until reality surfaces. I know some are really struggling and worried. The reason I've never expanded is that when I very carefuly work - out the potential extra profit that would follow from expansion it always adds up to a negligible amount or a reduction in net profit. The value of the business might increase by expanding, but Id rather not have the worry and stress.

The owners that really irritate me (and Im sure why Im irritated by them) are those that are for - ever optimistic, forever expanding.

Did anyone see 'risking it all' on CH 4 last night? The plonkers spent £13000 on the sound system for thier salon! £500 on a sound system would have been quite adequate! I often come accross such plonkers who have no concept of the term 'value added'.

thats exactly my position. sometimes i want to get moving and expand up like some competitiors have done. then i hear through the grapevine that they are quieter than i am i just wince at their overheads. when im flat they are in the red.

most of the extra business from expansion would go on costs and wages, with a slim margin if everything went well per job. as its stands since start of this year i have too much for myself and cut back on the modest margins and kept the cream. with all this downturn talk im glad i dont have a commercial property lease and employees. i contract work out when im need it. so far its delivering the highest quality product with the best customer service thats been the key. i spend more attention to any current problems than i do chasing new business. i think because of that the new business comes to me. i hear my competitors are bitches with correcting faults. i go the other way. it can leave you exposed to some, but the returns are better i feel.

also you can charge like a mo'fo.

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Can I suggest the debt collecting and repossession business; start going to the gym now !

NA, too much like hard work. Just go hire the Mitchell brothers! It would be funny if is was not so sad, but the boom business for the next few years will be debt collecting!

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Guest Charlie The Tramp

I started my own business in 1997 and have never seen the point in my expanding.

Oh my gawd dogbox, I agree with every single word in this post, hurry up with the retraining you lot, I desperately need a therapist.

:unsure:

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I started my own business in 1997 and have never seen the point in my expanding.

Other business owners I know have expanded rapidly. I often feel inadequate when taliking to them, that is, until reality surfaces. I know some are really struggling and worried. The reason I've never expanded is that when I very carefuly work - out the potential extra profit that would follow from expansion it always adds up to a negligible amount or a reduction in net profit. The value of the business might increase by expanding, but Id rather not have the worry and stress.

The owners that really irritate me (and Im sure why Im irritated by them) are those that are for - ever optimistic, forever expanding.

Did anyone see 'risking it all' on CH 4 last night? The plonkers spent £13000 on the sound system for thier salon! £500 on a sound system would have been quite adequate! I often come accross such plonkers who have no concept of the term 'value added'.

£13k on a sound system!

Didn' see the program - have they gone bust yet.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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