So, now is a good time to get your house in order.

The new Chancellor has set out an agenda to “encourage” prompt payment of taxes and to recover outstanding overdue tax. 7000 new HMRC staff are being recruited, IT systems are being improved and integrated and interest rates on late paid tax are on the rise. Now could be a good time for a Time to Pay Arrangement to get your taxes caught up. But you need to keep them that way!

Back in 2010 and 2011 there were dozens of announcements in the papers each week of companies going bust, and most were at the hands of HMRC. Whole swathes of commercial units stood empty as the companies laid off staff and went into administration.

Are we going to see this again? Who knows but it seems that the Government is set on collecting its money and their approach may once again be that this money is due, and if you cannot pay, then they may take you out of the game, giving your competitors a crack at your customers. It may not necessarily be the strong companies that survive but it will be the ones with a strong cash flow or perhaps more importantly, robust cash flow management.

Of course, it is an “ill wind that blows nobody any good” and in this environment there will be businesses who are able to capitalise on the situation. They will be the well run, cash rich companies, who will be able to mop up “wounded” businesses for a fraction of their value. If you are between being put into administration by HMRC and a low cash offer, perhaps the latter will be preferable.

If this view of the world comes to pass, then the world of business is going to get tougher or more interesting depending on your point of view. Anyone who has bought another business that marks a significant acquisition for them, will be only too aware of how hard the first few years can be. I reckon that based on our own experience after 4 acquisitions, that 2 years is the minimum time required to get the new baby running smoothly, efficiently and most importantly, profitable. It needs to be profitable because it needs to be cash generating to build up your war chest again. There will be situations when it will take longer, but for us, 2 years or a little over, feels about right.

What do you do if you do not have a war chest or cash reserves. We never did, so we know all about this scenario. It’s tough, but the rewards make it all worthwhile. If you want to know more, you’ll just have to come and speak to us.

So, are we looking forward to the coming couple of years? It reminds me of going out sailing in a strong wind in a rolling sea. The initial thought of setting sail is daunting, or at least it was for me. But once you are out there and fighting not only your competitors but the elements, you start to enjoy the experience. And, at the end of the day, you get back on shore satisfied that you conquered nature, even if you did not win the race. Of course, I did my fair share of capsizing over the years, who doesn’t.

But I have not sailed now for over 10 years. That mental strength has been deployed to develop our business, where over that same period our turnover went up many times over.

Mind you, I do miss my early morning rides on my horse along a long sandy beach near our home. A gallop at 6.30 in the morning is a great way to start the day. Logging into my office computer just does not give me the same buzz.

Alan E Long

The Long Partnership

07770 738770