Intelligent SME.tech Issue 20 - Page 17

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// TECH TRENDS // with further loans is only delaying the inevitable , risking the taxpayer ’ s money and dampening the hopes of a rapid economic resurgence .

The question is how do you identify the companies that have this requisite robustness ? There are five key indicators of a company ’ s robustness :
Using these indicators , a lender can successfully assess which companies would benefit from additional loans and those that would not . It is only through this selective leveraging that the UK ’ s SMEs can not only survive but thrive going forward . �
• The company ’ s operating location – how stable is the business in which the business operates or plans to operate within ? How much interference is there from the government ? How has the market performed economically in the past ?
• The longevity of the market – analysing the future sustainability of any sector using trade body content , relevant market associations ’ publications , government-generated statistics and relevant press cuttings .
• The sector ’ s competitiveness – carrying out thorough research on the competitive landscape and determining whether it is overly congested or dominated by a small number of brands .
• Barriers to entry – look to see how the business can enter the market . It is vital to see how the business plans to enter or has entered a market to gauge its potential long-term resilience .
• The business ’ USPs – examine the core competencies of a business and how it differs from that of its peers .
Douglas Grant , CEO at Manx Financial Group
Intelligent SME . tech
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