IF a business is facing insolvency, what can be done? That was the question posed to entrepreneurs Lord Willie Haughey and Sir Tom Hunter on yesterday’s Go Radio Business Show.
Guest George Tah, founder of Glasgow-based Jambo! Radio Scotland, a channel for people of African and Caribbean heritage in Scotland which brings communities together through engaging shows and music in multiple languages, admitted that his business was facing difficulties due to cash-flow issues and asked the entrepreneurs for advice.
Lord Haughey, lauding Mr Tah for being “honest and brave”, advised him to “look at your costs and you have to look at increasing your revenues”. He added: “Be careful that you are not taking yourself down a bigger black hole.
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“It is sad for me to say when I’m encouraging entrepreneurship but sometimes you need to realise when you’re a fighting a losing battle. When you’ve looked at everything … how can we cut costs, how can we increase revenues? But when you find you can’t sleep at night because you think you’ve tried all that, it is time to see how you can get the best exit you can.”
Explaining how he had relocated from a business centre at Glasgow Airport to premises in Glasgow city centre to reduce staff commuting time, Mr Tah outlined the history of Jambo! Radio which was launched during the Covid-19 lockdown to provide information for people in their own language including Swahili and French.
“Three years ago, we had 10 staff but now we have three and volunteers,” he said. “Most revenue comes from grant funding and about 30% is from advertising.
Lord Haughey, telling Mr Tah that he understood the radio business and describing it as a “tough game”, said: “You have been honest and brave. Radio is a tough game to make money.”
Offering his advice, Sir Tom said that while it was difficult to do so without having more information about the business, he agreed with his co-host that looking at sales and costs were critical. “I would start by saying are customers buying what you are selling, is there a market for what you have got? You as the leader of your business have got to be honest with yourself,” he said.
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“You have responsibilities here,” he added. “If your answer is ‘I really have got a product which customers are buying or maybe they could buy more … but you mustn’t kid yourself on.”
Sir Tom suggested that Mr Tah could consider finding a mentor “who can stand beside you and say ‘George, do you think this is the right thing’, adding: “You need to decide if ‘I’m putting a lot of effort into this – is it worth it or is there something else I can do for my community’?
“I understand you are very community-orientated and we take our hats off to you.”
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