BUSINESS DIFFICULTIES - HOW TO COPE

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In practice, a business person is a "scared" individual. Many things scare him; among them :

• Market Conditions - including changing taste of consumers, intense competition, price fluctuations, etc.
• Legislative Laws - which include tax laws, licensing procedures and other compliance conditionalities.
• Political Instability - which cannot facilitate any business activity.
• General Government Policies - often reflected by official statements defining and clarifying the general Government philosophy.
• Credit Facilities - particularly the availability of affordable sources of borrowed money from banks and other financial institutions.
• Investment Opportunities - a business person often prefers to diversify. Lack of other avenues for investment is often a great source of worry to the business person.
• General Economic Performance - business thrives in a thriving economy.
• Recession in the economy is a nightmare to the business person.

The above issues are only some of the events and matters that have an effect on the business - and these are visible to us in the form of business difficulties. So how do you cope with this?

Try some of these techniques and strategies :

1. Try something new - enter into new markets, such as export market. Offer consumers a new version of your product, say as "imported". Consumers may initially want to sample it, try it out and by the time they realise it is no different from your usual products, you will have done good business, made your money, and probably things that caused the difficulties may have gone.
2. Turn to more lucrative opportunities - yes, even under severe business difficulties, certain investments remain lucrative, for example, passenger transport since people must travel or as it did happen in 1993, treasury bills. Remember to consult your financial adviser when it comes to money business.
3. Maximise your potential - e.g. by diversifying your activities within your core business. Why not try a small restaurant alongside bread manufacturing as your core business?

1. Repackage yourself - from re-styling your display storage to actual package of your products. Consumers' curiosity will push them to try the new concept and this "trial" period by consumers is a business period for you.
2. Price adjustments - in a way that will offer some incentives to the Consumers. Try to convince them that your prices provide greater relative value.
3. Advertise - initially, it is a cost but may decide the winner at the "finishing line". Get people to know you better.
4. Cost cutting measures - although a continuing policy, drastic decisions may need to be taken, such as staff layoffs, eliminating non-essential procedures, installing new systems, etc.

Make it your policy to consult your professional adviser. He will always ensure that avoidable errors are not committed.

BUSINESS TRAVEL PLANS

DECEMBER 1997

Offshore Investments - Bakul Kothari

JANUARY 1998

Self Assessment Tax Returns -

FEBRUARY 1998

TAX REMINDER

1997 fourth instalment tax payment for all persons with accounting year 31^st December 1997 is due on 20^th December 1997. Please ensure that your cheques reach Income tax department by 19^th December 1997. For any advice, please contact Jophece Yogo or Bakul Kothari at Nairobi.

Tax investigation Services

Why Alexander Grant & Associates?

How can we help?

Our team can help you in a number of ways:

• We can give you an early appreciation of the nature and significance of a particular approach from a Income Tax Investigator and advise on how to respond most effectively.
• We can provide comprehensive technical advice on the Income Tax Departments' right to demand information and practical assistance as to how best to respond.
• We can negotiate on your behalf to reduce the work needed to agree any tax payable.
• Our technical expertise will help ensure that no more tax than necessary is paid.
• We can present informed arguments to seek to mitigate any interest or penalties that may be due.
• We are particularly well equipped to produce a full scale investigation report for all types of Special in-depth cases and the larger District investigations.

It is important to have tax investigation specialists on your side when dealing with the Income Tax Department and we will negotiate authoritatively and energetically on your behalf.

We are happy to have initial discussions without obligation and take a commercial approach to how our fees are agreed and settled.

General Manager - Jophece Yogo for an early appointment

ALEXANDER GRANT & ASSOCIATES

VICTOR HOUSE, 4^TH FLOOR, KIMATHI STREET, NAIROBI, KENYA

Telephones : 002542 221306 / 245694 Facsimile : 002542 224314

Although all reasonable care has been taken in the preparation of this news briefing, Alexander Grant & Associates cannot accept any responsibility in law for its contents. Clients are advised to seek independent professional advice before taking action in consequence of anything contained herein.