Wednesday, November 23, 2005

The trouble with being successful

One of the amazing things about running a small business is the emtional roller coaster ride to which you're subjected.

Last week I talked about the challenge I faced when a couple of the six companies I control unexpectedly posted losses. We analysed what had happened and (hopefully) took some steps to get them back into profit.

This was done against the backdrop of the oil industry where activity worldwide is exploding on the back of the high oil price and the growing need to replace diminishing oil reserves. And all my companies are in the oil game.

To cope with this increased activity, during the past week I've authorised expenditure of about £800K for new machines and tools and raised a futher £200K for working capital to pay for all the new guys we're hiring.

The Government calls this "investment" and proudly takes the credit for encouraging industry to grow.

But it isn't. It's borrowing. Believe me, I'm at the sharp end and I know.

And that's the funny thing about business. The more successful I am the deeper I get into debt.

Can't wait for the next slump.

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