There is no escaping the fact that a variety of different businesses, both big and small, suffer from various problems in their lifetime. One of these at the moment is the high-profile independent trading provider, Skills Training UK, as it was reported recently that they are set to collapse.
Who Are Skills Training UK?
Skills Training UK operates independently in order to support different people and have them succeed in their careers. They do this by providing training that allows individuals to develop their knowledge of subjects and further enhance their skills. They have previously prided themselves on igniting confidence and motivation in the people who use their services, whilst also supporting employers so that their staff can be as effective, productive and resilient as possible.
The company was formed back in 1992 and since then has been at the forefront of training staff members and their employers. They also assist with the creation of different apprenticeships and traineeships so that people in different industries with varying levels of experience are able to get the help they need and the qualifications they need in order to pursue whatever their career goals may be.
Despite the work that the company has done in the past, it currently finds itself in a near-impossible situation, with jobs at risk and the organisation teetering on the brink of collapse.
What Has Happened to Skills Training UK?
So, what has actually happened? The national provider which has centres across the UK, including in the South East, London and West Midlands might be filing for insolvency and could be going into liquidation as soon as next week, with hundreds losing their jobs as a result.
Staff were told that they were not required to come back to work due to the fact their bosses needed to have crunch talks with some liquidators. There is yet to be a final decision on the future of the business; however, one is expected soon.
There are a few circumstances that have led to the company being in this position, the first of which is that earlier in July, Skills Training UK was one of several big-name training providers within the UK that missed out on a national adult education budget. On top of that, as previously mentioned, the company has also had traineeships attached as part of its portfolio but these were scrapped by ministers earlier in 2023. This is a serious loss of cash given the 16 – 19 allocation for 2022 / 2023 was worth £4.2 million.
Additionally, Skills Training UK has also previously relied on apprenticeships, but the amount they are able to allocate has been gradually decreasing for over half a decade. They reached an all-time high in 2018 with 1310, but now are at more than half that figure with only 550 allocated in the first three quarters of 2023.
A loss of £3.5 million was recorded in 2023. Contrast that with a profit of £1.2 million in 2022 and it is clear just how quickly these serious issues have developed for Skills Training UK. Turnover has slipped to £10.3 million from £18.0 million, which has been said to be the fault of the coronavirus pandemic. This may well be the case but the problem still stands that the economic troubles of the company remain and have not made any improvement since the pandemic.
What Are Some of the Other Issues That Companies Today Face?
Every company’s problems are unique to said company; however, Skills Training UK are not alone in their hardship. A lot of organisations throughout the UK (and the world) are facing a variety of different issues. Some of the most common challenges that businesses these days are facing include but are not limited to some of the following:
- Client Retention and Maintaining Good Customer Relationships
Customer acquisition is important for any organisation out there, but client retention is equally, if not more important. Businesses need to make sure that they are creating a solid relationship with their clients and keeping that well-established relationship in order. This takes time, which is why it’s difficult to maintain said relationships at times, but this effort is worth it for customer loyalty.
Thanks to our increased reliance on technology, the way that we can connect as a society has evolved. Customers are always shopping, regardless of whether this is intentional or unintentional. As such, by always being in your customer’s minds and being in contact with people who trust your ability, you will be constantly increasing your traffic and conversion.
- Not Meeting a Customer’s Needs
In order for businesses to maintain good customer relationships, they need to meet the needs of their customers. This means being aware of what a customer wants and how to help them get it. Management of customer service and in turn ensuring that a customer’s needs are being met is massively important when it comes to an organisation’s overall success.
- Having a Good Reputation
Word of mouth is important, people will read reviews online and have a look at client testimonials before engaging with a business. As such, having a good reputation is very important so that people do not hesitate to work with your business. The minute an organisation develops a negative reputation is the minute said the organisation will struggle to acquire new customers and continue turning a profit and growing.
Does Your Business Need Help Through Difficult Times?
As can be seen above, there are a number of reasons as to why a business might find itself in a difficult situation, and the size of the business does not make it immune to these problems. If, like Skills Training UK, your organisation currently finds itself in a difficult financial situation then you should consider getting in touch with experts such as Leading UK. At Leading UK, we will be able to sit down with you in order to understand what your business does and what position you currently find yourself in. Using that information we will be able to provide advice with both your business and your creditors in mind. If you have any further questions then do not hesitate to get in touch.
