Roger Trapp: In an ailing economy, good timing is crucial

Britain's small business and banking communities have never had the best of relationships. Recent events will have done little to improve things.

In a predictable reaction to their problems caused by an overeagerness to lend to people who might be termed less than ideal credit risks, banks have toughened up their lending criteria to such an extent that they are effectively hardly lending at all.

Since this is an interesting business model, to say the least, one can assume that – once things have calmed down a bit – a more sensible approach will prevail. In the meantime, though, the sufferers, alongside would-be homebuyers, are businesses of all sorts, but particularly smaller ones looking to grow. An enterprise that – with the encouragement of its financial advisers – is operating on the financial edge because "money is cheap" can be knocked sideways by a sudden tightening of credit. So far, the damage does not appear to be too severe. But the longer things continue as they are, the worse the situation will become.

It is not all bad news, though. There will be many opportunities for businesses with access to cash. It is widely acknowledged that many successful organisations began in downturns, largely because any business that can struggle through hard times should be able to prosper when the economic climate improves. A lot can depend on what sector you are in. Serving the luxury goods market, for example, may be a perfect way to make a fortune in the good times, but it is unlikely to be so successful when consumers become more concerned about their expenditure.

Another key factor is timing, either by luck or design. This is often glibly referred to as being in the right place at the right time. But much careful planning can go into what looks easy or obvious.

Take the example of coffeeheaven international, the chain of coffee shops in Eastern and Central Europe. Founder Richard Worthington hit upon the idea when looking around for a business opportunity after a career with international companies. At the time, the sort of coffee shops that are now ubiquitous were just starting to appear on Britain's high streets. In Poland, they were non-existent.

Worthington – in true entrepreneurial spirit – saw his opportunity and grabbed it. As a result, he obtained many of the key positions in the newly-built shopping arcades and, as a result, coffeeheaven enjoys the same sort of brand awareness as the likes of Costa, Nero and Starbucks in the UK. These brands are starting to eye the market, but it is coffeeheaven that has the beachhead, with more than 85 sites in the region already.

But Worthington's innovation is not limited to seeing an opportunity to get in ahead of the opposition. He has also come up with a business model that he says enables his operations to make a profit with fewer outlets than his rivals. The result is that he has been able to expand into other parts of the region – such as the Czech Republic, Latvia, Bulgaria – without over-reaching himself. It has not been all plain sailing.

A recent research note by Investec Securities on the company, which is listed on London's Aim market for smaller companies and has a value of about £32m, points out some problems with delays to shopping centre openings and the like. But if he needs vindication of his bold decision to start a business in Eastern Europe back in the dying days of the last century, Worthington need only look at the floods of newly wealthy Poles returning to their homeland hooked on the café lifestyle of the West.

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