Credit crunch - effects on business

Calibre Designs · #1 (**permalink**) 12-09-2008, 20:06

Can I have your views on how the credit crunch is effecting business?

RedEvo · #2 (**permalink**) 13-09-2008, 08:35

I think many of us will only start feeling the impact in the coming months as the effects starts to filter through. Same with unemployment which is a lagging economic indicator and again will really start to bite in the coming months.

If you are a B2C company you will start to feel it big time from now on IMHO.

d

ARK · #3 (**permalink**) 13-09-2008, 22:25

I think the effects are already filtering through, not only the credit crunch but there are signs of a comming recession.

Firstly the decline in the house market, the fiasco with Northen Rock and the way inflation is rising, it's all begginging to affect our disposable income.

With our credit culture and banks begining to tighten up on what they lend and be a bit more sensible about who they lend to, the highstreet is feeling the pinch.

I can't remember the stats exactly but last quarter there was the bigest increase in people claiming unemployment related benefits.

All these factors will filter through and together they seem to indicate the start of a recession.

In some way's i'm lucky in that weather someones starting up, in trade or winding down they still need an accountant.

RedEvo · #4 (**permalink**) 14-09-2008, 05:21

Quote:

Originally Posted by ARK

I think the effects are already filtering through, not only the credit crunch but there are signs of a comming recession.

For clarity I agree that we are seeing the effects of the credit crunch with respect to tighter lending etc. My point is that I think the knock on effects in real terms are only just kicking in, unless you are a builder.

I also believe we are now in recession but will need to the next two months to show negative growth (oxymoron?) to be officially in recession.

It's a great big reality check and well overdue IMHO.

d

An Oasis · #5 (**permalink**) 14-09-2008, 09:17

Agreed Dave

What is surpising is that it has taken so long for so many bubbles to burst. It just shows the levels of credit that society has been living on, for all these bubbles to have gone pop in such a short timescale.

To answer the question, it has affected our hire business massively, for the first time in 2 years we will have to do some marketing. Not difficult but it does show how fortunate we have been to have a great client base and the value of repeat business the old 80/20 rule.

Calibre Designs · #6 (**permalink**) 14-09-2008, 10:04

I was looking out for this key statement. Thx

Quote:

To answer the question, it has affected our hire business massively, for the first time in 2 years we will have to do some marketing.

Indizine · #7 (**permalink**) 14-09-2008, 10:09

Has it affected you Kay?

Calibre Designs · #8 (**permalink**) 14-09-2008, 10:29

Fortunately no

Would you agree that the market sectors are so saturated that it makes it more and more difficult to compete? During the credit crunch, many companies will go out of business. The ones who survives will see a brighter future.

Thoughts?

Indizine · #9 (**permalink**) 14-09-2008, 10:39

Fortunately I haven't been running my business as long as others, in that I dont know any different with regards comparing now to previous years.

The ones who survive are those that are always looking for ways to beat their competitors. If they have only just seen the light at the end of the tunnel, they better be quick - that will be switched off to save money soon.

An Oasis · #10 (**permalink**) 14-09-2008, 14:28

Quote:

Originally Posted by Calibre Designs

...Would you agree that the market sectors are so saturated that it makes it more and more difficult to compete? During the credit crunch, many companies will go out of business. The ones who survives will see a brighter future.

Thoughts?

One of the biggest issues for the companies that are in danger of going
bankrupt is when to pull the plug. That will be the most difficult decision those that get out early will have collateral in buildings, stock...which can all be sold off, those that wait too long will not.

One of our clients Bentley has just announced that they are going from a 4 day week to 3, no layoffs at present and the staff are on full pay but for how long?