Speaking at a panel event in Liverpool on the challenges faced by owner-managed businesses, River Capital chief executive Mark Borzomato said not anticipating risk was a key reason why so many ventures fail. Tony McDonough reports

Failure to anticipate risk is one of the biggest threats to the survival of owner-managed businesses, according to one Liverpool SME expert.

Mark Borzomato, chief executive of Liverpool-based River Capital, was speaking at an Business Question Time event in the city which aimed to share practical insight on the challenges facing owner-managed businesses across the North West.

Chaired by Downtown in Business chief executive Frank McKenna, the event took place at the Everyman Cinema and on the six-strong panel of experts was:

• Mark Borzomato, chief executive of River Capital.
• Denise Walker, founder and head of corporate at law firm Glenville Walker.
• Andy McCall, managing partner of accountancy firm Langtons.
• Caroline Turley, investment manager at FW Capital.
• Tomas Maunier, managing director of Southern Wind Group.
• Wesley Mort, regional director North West at HSBC.

This discussion drew on real experience from across the funding, legal and business leadership landscape to give attendees practical, actionable guidance, with a founders perspective to add to the experiential learning.

River Capital is part of the MSIF group which has been supporting SMEs in Liverpool city region, and across the North West, with loan and equity funding since it was founded in the 1990s.

Not only does it provide capital for ambitious and fast-growing ventures, it also offers ongoing advice, support and mentoring. During his years at the business Mark Borzomato has seen many firms do well, and some not so well.

He told the audience at the event: “Real resilience means you’ve already thought about the risks before they materialise.

“Understand the sensitivities in your business, avoid concentration, whether that’s with customers, suppliers or key people, and communicate early. Your options are bigger the earlier you react.

“The moment you leave it, they narrow. Businesses fail when they don’t see a risk coming. If they see it coming, there are normally options.”

Denise Walker, one of the best known figures in the Liverpool legal and corporate finance arena, said: “The businesses that succeed are the ones that get their governance right, spread their risk and are not afraid to take advice. That’s the foundation everything else is built on.”

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On common mistakes entrepreneurs make, she explained: “If you’ve got a good business, you need to showcase it properly. Funders see a lot of opportunities. If you’re chaotic and not presenting yourself well, it doesn’t matter how strong your proposition is. You can let yourself down.

“… Get the right legal structures in place early. Don’t contract on the back of a fag packet and please look carefully at your liabilities. The businesses we’ve seen face the most difficulty are those that left it too late to take advice.”