THE increasing entrepreneurial culture in the south is creating hundreds of new and exciting businesses but very often these falter through a lack of sound business acumen.

Antony Fanshawe, regional chairman of R3 and a partner in Southampton-based Fanshawe Lofts, believes there is much these budding entrepreneurs can do to ensure their ideas don't fail in the face of financial pressures.

"R3 represents professionals working with underperforming businesses and our experiences show how important it is for these companies to be prepared for anything," said Mr Fanshawe.

"The vast majority of businesses likely to be affected are small in size and often owned by people with little previous experience of running a business and sadly their lack of management experience often means they seek advice too late."

He said companies in all spheres of industry should be aware of simple steps they can take to minimise the chances of the business becoming insolvent and their dreams disappearing into the latest company failure figures.

1. The golden rule is not to ignore the problem. The longer you leave it the worse it gets. Seek specialist help as soon as possible and get professional advice on renegotiating your payments.

2. Remember cash is king. Try to ensure that debts are collected as efficiently and effectively as possible and ensure you know what your own debts are and when they fall due.

3. Don't borrow money to pay off your debts without thinking carefully, especially if the loan is to be secured against your home or business.

4. Get in touch with creditors straight away and explain the situation. Maintain an honest and open relationship.

5. Work out a business budget to establish how much money is coming in, and how much is going out. Review this budget and consider ways of improving your financial position, including what could be cut or reduced.