02-10-2007
SMEs should not depend on one contract
News from Simply Business - independent providers of business finance, business insurance, buy-to-let mortgages, commercial mortgages & landlord insurance
UK-based small to medium-sized enterprises (SMEs) should not depend upon one single contract, it has been claimed.
According to comments made by Matthew Knowles, a representative from the Federation of Small Businesses (FSB), the finances of SMEs should not be dependent upon the existence of one significant contract for success.
"Not relying on one major contract for the majority of the firm's money is important," said Mr Knowles.
"Rent is one of the largest expenses for smaller businesses and can cause problems if cash flow tightens or if business is lost for whatever reason," he added.
Established in 1974, the FSB represents a UK-based membership base in excess of 205,000.
Among the benefits of membership are a 24-hour telephone helpline for legal matters and preferential banking terms.
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