Running a business involves balancing an endless list of supply and demand issues. Problems in politics through to fashion trends among consumers can result in serious dents or peaks in a company's profits. But could something as simple as the weather really hit businesses that hard?
It appears so. The latest research from the Federation of Small Businesses (FSB) has found that six in ten small companies were hit by the prolonged cold snap that has characterised the first quarter of 2013. Some companies were even forced to stop trading as demand dropped too low for them to continue.
For those looking to buy a distressed business, these figures provide two important viewpoints. Firstly, there should be a few extra distressed businesses for sale as a result of the cold weather. But secondly, the data brings a stark warning to buyers who need to make sure that their next acquisition does not fall victim to the same fate.
Mike Cherry, national policy chairman for the FSB, commented on the findings: "We may finally have turned a corner into spring, but it's been a long haul, following the coldest March in 100 years.
"While a few businesses have managed to take advantage of the weather many have found it difficult to manage. Not only have they had to cope with a lack of demand for products, but many have had to close."
He added that the popularity of out of town shopping centres and supermarkets is making things particularly hard for retail businesses based on local high streets.
The research found that 30 per cent of firms experienced a loss of demand due to the cold weather, while 26 per cent were forced to close – either permanently or temporarily. A further 27 per cent of the businesses had staff absent for at least one day.
The findings highlight to us one simple conclusion: The economy is simply too fragile not to plan for the worst case scenario. Make sure you have funds and a contingency plan in place so that you don't get left out in the cold.
Read more: How to profit from buying a distressed business 
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