CMPA SUPPORT FOR SMALL BUSINESS
The Construction Material Processors Association is aware of the many pressures currently being brought to bear on the small business operator. These pressures are all inclusive and involve physical, financial, and legislation and government pressures. The CMPA has put in place a “Business Support Board” for the specific purpose of addressing at least some of the problems in running the small to medium quarry or similar business, with the aim to provide direct and immediate advice and assistance to members.
The Business Support Board is now investigating the type of support required by the small to medium operator, and input from CMPA members is required. It is envisaged that support will be directed along the following lines
- Resource assets-estimates and values
- Marketing assistance
- Financial restructuring
- Valuation of assets-for financing, mortgage renewal or balance sheet
- Winding up-business closure
- Goodwill-estimated value
- Rehabilitation responsibilities and liabilities
- Disposal of assets- marketing and selling
The vast experience of the members of the CMPA is a huge and valuable resource that can be made available to members. All owners of small to medium sized businesses have very similar problems, and eventually decision making for the future becomes a priority. The CMPA is aware that the future for some operators in the extractive industry may result in business closures with the members moving out of the industry, and almost all members at some stage need to address the very important and personal matter of distribution of assets between family members.
Decision making has always benefited from external professional advice and the CMPA Business Support Board will have the experience to direct a member to consultants and advisors recognised in the industry for their ability to succeed and their hands on experience. The Support Board will not be looking for hypothetical and theoretical advice, rather the advice to members must be at all times practicable and achievable.
The CMPA Business Support Board will, following a request from a member, provide the facilities for a confidential interview with relevant agreed consultants and experienced personnel. It is likely that with serious problems there will be the need to identify the strengths and weaknesses of the member’s business together with existing management systems, future plans including succession planning, meeting the existing problem head on, and planning for future ongoing and continual changes.
The cost to a member for professional assistance from recognised experienced personnel will always be on an individual basis taking into consideration the requirements of the member and the demands likely to be made on the Support Board.
The CMPA has for some time been concerned that feedback from members indicates an acknowledged lack of experience and expertise in meeting some, but not all, of the daily problems encountered within the quarry industry. After all, where does a member get the experience to address the problems of divorce, death of a valuable and close family member, the financial strain brought about by the failure of a “reliable” customer, forthcoming succession in planning and retirement, accountancy and bookkeeping changes, the selling or purchase of a business or the winding up of a quarry and resulting reclamation and legislation requirements.
The CMPA is concerned that the existing daily problems are likely to increase in future years, and all problems are best addressed early. There are times when the truth and size of the problem may hurt but surely it is best to address that problem in its early stages rather than when it is too late and the horse has bolted.
Robin Hocking
CJ Ham & Murray
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