February 24, 2020 | 2years | Doctor Spanners Toolbox

The death of a loved one can have a devastating impact on a person. Speaking from my own recent personal experience the loss, even of an older person, can have a huge impact on your mental health and general wellbeing. As a Doctor, in the construction industry, I see the same impact when there is a sudden death of a business resulting in personal devastation, which can leave a long-term lasting effect on all your workers and staff.

The death of a business is something that I have had to deal with when, in 2010, my own £8million turnover construction business was forced into administration as a result of three of our clients going bust and owning us £1.2million.

Therefore, this week when I read the Construction New article Revealed: 22 firms went under in January it brought back the horrific memories of the day I had to tell my team that we had to close our doors.

Since the collapse of Carillion in 2018, the press has carried reports almost monthly of the demise of another high-profile large organisation. Although these shocking statistics are well reported, for me, the more worrying trend is the creeping insolvency and administration numbers of small businesses. Although there were exceptionally high levels of construction deaths in 2010/11, when almost 5,000 companies in mainland UK went under each year, there was generally an acceptance that this was down to the fallout of the 2008 global banking crisis, but we have no such event to blame in 2020.

As a Doctor the worrying trend amongst construction organisation “deaths” over the last five years has been the 30% increase in companies filing for insolvency and an increased 40% entering into administration.

Although for many small contractors and specialist sub-contractors it is challenging to deal with external factors. It is imperative for your Business Health to get a check up on the internal factors. I often hear about that bad project with “hidden costs” bringing on a project heart attack. However, there is an easy remedy to this condition.

The ability to record, project and predict the impact of tender errors, poor productivity, wastage, cashflow management, project risks, delays and disruption, is available to all organisations by integrating a structured data management system into your business. If you are a small organisation, I know this exercise can seem daunting. However, increasing your business fitness does not need to be costly or time consuming.

Apsis One-share has been developed, by the Doctor, to prolong the life of your business and can be installed for a single one off cost of £100, which I can assure you from personal experience, is a small price to pay compared to dealing with the sudden death of your business.

Remember if you would like to hear more from Doctor Spanner’s Toolbox connect with us through social media or visit our website where you will find the tools to maximise your business productivity and profitability.

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