We are into an exciting New Year but one fraught with risk.

Our economy, shown by the recent GDP figures, is marginally contracting and we might be facing a double dip recession although the Government are forecasting very modest growth this year.

The crisis in the Eurozone rumbles on and if this is not sorted out we face the very real risk of another credit crunch. We might be comforted that our banks are not as exposed as others on the European mainland but should a European bank fail then we will not be immune from the fallout. Europe would be plunged into recession and this would damage us all.

On the brighter side we have the Queen’s Diamond Jubilee celebration and the Olympics and I believe that these will give a boost to moral and encourage growth here in the UK so let’s not be too gloomy!

Whatever side of the coin you look at there is no denying this year is likely to very volatile. For the business owner this is very challenging when making plans for the future.

But some key steps can make all the difference:

1. Budgets need to be very closely reviewed and flexibility is crucial. Don’t be afraid to revise your budget during the year to take account of changes in demand. Monitor actual performance against your budget on at least a monthly basis and don’t just look at income. Make sure you are maintaining your margins especially gross and operating profit.
2. Keep extremely tight control over overheads.
3. If you purchase new assets make sure that the potential return warrants the investment.
4. Credit control is crucial! Make sure that your credit procedures are watertight. Chase up outstanding debtors at a very early stage. You want to be at the front of the queue if things are going wrong. Send invoices at the same time as delivery of your goods or services. Don’t wait ‘for the end of the month’ to send out your invoices.
5. Thoroughly check out the creditworthiness of new clients.
6. Keep cash flow under constant review. Perversely there tends to be more business failures as the economy comes out of recession. The reason? Answer; lack of cash to finance a growing order book! Traditionally your bank would help out with an overdraft but the banks are much more conservative now so if you see a need on the horizon speak to you bank at an early stage.
7. Ensure your managers have the skills to really understand how to analyse figures and business plan accordingly. Without a financial background this can be daunting for many and some guidance can really help.

So, let us all keep our fingers crossed and with proper planning and control I wish everyone an exciting, happy and prosperous New Year.

With Valentine’s Day just round the corner, how do you manage the thorny problem of relationships at work?

Romance at work is widespread – many of us spend a good third of our time at work, so it is not surprising that relationships often develop here.

And it is not all bad! Happy people are more motivated and more productive. Having a partner at work can mean couples have someone who can share the stresses and understand the strains.

But there are potential dangers. Most companies recognise it is unworkable, not to mention draconian, to try and ban interoffice relationships. 

Better to focus on the risks that might arise, such as unwanted romantic attention, relationships between line manager and team member, managing the fallout from a broken relationship, considering how to manage confidentiality concerns. 

Some companies have a specific Relationships policy, which will give guidance around what is appropriate and inappropriate for family relationships, as well as romantic ones. For example, ensuring managers are not involved in the recruitment of a close family member.  This sort of policy can offer clarity on romantic relationships, such as whether the company tolerates relationships between line manager and employee, without it being solely focussed on romantic situations.

A Conflict of interest policy could broach similar issues, without it being seen as an attempt to “ban” relationships.

Relationship breakdowns are one of the trickiest areas to manage, particularly if one of the couple brings a claim of harassment, because of their ex partner’s behaviour at work. In this situation, the employer could be partly liable and needs to take steps to make it clear this is not acceptable behaviour. Your harassment policy will be vital here.

Most of all ensure your managers have confidence to deal with difficult situations arising from inter office relationships. If a couple’s behaviour is leading to problems - which could be anything from flirtatious behaviour making people uncomfortable to the relationship causing distraction and loss of focus for the people involved – then the manager needs to deal with it.

As always, it is these grey areas which often cause managers most angst. Having some guidelines written into a “Behaviour at work” policy and getting managers discussing these situations and how to handle them can go a long way to ensuring they are dealt with before they get out of control.

If you are interested in exploring the whole subject of Managing Appropriate Behaviour at work, come along to our free seminar run in conjunction with Penningtons Solicitors on the 21st Feb. It will be a chance to ask questions on any aspect of behaviour at work and network with like minded professionals.

Look forward to seeing you there!

And have a happy, conflict-free Valentine’s Day!