All Their Phones in One Basket

Sad news came out earlier this week with the potential closure of one of the biggest phone retailers on the high street.

Thousands of jobs are at risk with the possible demise of Phones 4U. Founded 20 years ago when mobile phones were in their infancy, Phones 4U was later sold to a private equity firm for almost £1.5 billion. Who would have thought this successful giant, that made a profit of £105 million in 2013 would be on the brink of collapse in 2014? The problem is that the mobile phone market is dominated by a small number of mobile network operators who can pull the plug and effectively destroy a business. When first Vodafone and then more recently EE decided not to renew their contracts with Phones 4U, the company no longer had a business. So, if this can happen to a large and successful enterprise, it can easily happen to any SME which relies on just a handful of suppliers or customers. Sometimes, as in the case of Phones 4U or when operating in very niche markets, there is no alternative. There’s only one basket to put the eggs in. But it is possible to make contingency plans to create a fund, should the worst happen and ride out the storm. No doubt as Phones 4U employees will be hoping this week. Financial literacy training will provide you with the questions you need to ask yourself, in order to put those contingency plans into action. It will make you aware how to mitigate your financial risk and give your business the solid financial base it needs to face any hurdle with confidence. Colour Accounting™ is our financial literacy course. Click here to secure your place. [traininglist slug=”colour-accounting-normal”]  ]]>