BUSINESS SURVIVAL 2010

Costa Blanca Lawyers have for too long dealt with businesses struggling to survive. The number has increased in line with the economic crisis yet there is a common thread to most businesses in difficulty. They do not have a feasible and honest business plan and never have had.

It's no wonder they flounder when in trouble, having no idea what they have coming in or out or whether they have overheads that are affordeable or whether they could be cut to save cost.

On the Costa Blanca times are harder than in other areas, particularly the UK, and many are returning in the hope that they can create a better life there. But even then that is not always the case.

Obtaining frank, honest and practical advice before deciding on a business venture is vital. You need to be aware of the costs of set up, many of which are hidden before you start. It's no good realising a couple of months down the line that you cannot afford the essentials.

Many work out the basics but don't realise the full implications of the costs of running a business on the Costa Blanca. Social Security and taxation is high, as are employers contributions. The quarterly taxes need to budgeted for. Even if you are on the modular system where you pay the same amount every quarter, the fact remains it needs to be paid.

Opening a new business is a brave move in the present climate but a move that can also be foolish. Unless you know your client base and the expected revenue such a move could prove dangerous and disasterous.

Before you open look around at other businesses and how long they have been there. It is a well known fact that those that are established will survive in an economic down turn whereas a new or relatively new business will fail.

As a word of warning even established businesses are struggling so think very carefully before you act you could be committing financial suicide.

For those in business and struggling seek legal assistance before it is too late quite often a little negotiation and discussion regarding structure can help resolve issues.

Don't be soft, there is no room for sentiment in business and if you are to survive then do the right thing and make sure you do. You may need to cut staff. You will be amazed the savings you can make. Your landlord may be more helpful than you might think. Looking at your outgoings see how else you can reduce them - you may be surprised!

For more information or assistance contact Costa Blanca Lawyers at www.costablancalawyers.com