What all businesses already know and are already having to deal with, is now being officially confirmed.
3rd September – “The British economy will shrink by 0.075 and 0.1 per cent in the third and fourth quarters respectively, says the OECD, an annualised rate of minus 0.3 per cent and minus 0.4 per cent. Two quarters of negative growth satisfy the conventional definition of recession.”
“A Paris-based think-tank sent shockwaves across the English Channel this week after predicting
the UK economy would be alone among the world's leading nations to enter a recession this year.”
Whilst currency devaluations may improve the fortunes of manufacturing industries, who are quicker to benefit in terms of cheaper exports, the shift from manufacturing to financial services over the past 15 years, means that this will benefit fewer businesses than in the early 1990’s at the time of the last recession. Furthermore, this will not help companies whose market base is solely in the UK.
It’s not too late to take steps to strengthen your business management and improve your prospects over the coming months. Look at the service that you’re providing to your existing clients and make sure that you retain those that are profitable. Remember that this can also be a good time to capture new clients as they should also be assessing the service they receive from their existing providers, so don’t sacrifice marketing in order to cut costs.
Even profitable businesses can fail if they don’t manage their cashflow, so investment in good credit control procedures will be essential to survival.
We don't think we are at the Ray Mears rubbing-sticks-together stage quite yet, but
survival of the fittest is the name of the game. To help you assess your ability to weather the storm, we have extended the free period for companies to complete your
Business HealthCheck here. Please feel free to take advantage of this tool.