Reality V Fiction

Reports in various publications (Newspapers, Magazines, Business and Banking Reports) give a confusing picture of what is actually occurring in the small to medium enterprise sector. Recent reports from both banks and independent publishers would tend to indicate that this sector is travelling reasonably well and I am sure that many business sectors are. But a walk around major shopping strips and industrial areas paints a very different picture. The high level of for lease signs in areas that 2/3 years ago were impossible to obtain a tenancy are now common. Restaurants and cafes are struggling with the high loadings for non-standard hours and many are closing. Retailers are suffering from rentals that were supportable 3 years ago but are now as much as 30+% of gross income. Banks project an image of funds being available at the lowest rate levels in history, but are these rates available to small enterprises. Yes if Real estate is used as security, but for goodwill, most unlikely. When looking to sell & or purchase a business the above comments need to be taken into consideration along with the many other factors associated with the small to medium enterprise sector so decisions are based on cold hard facts, in doing so, it should reduce the likely hood of the business declining or collapsing.   Owen Mitchell Business Broker