Are Storm Clouds Gathering?
The BBC and Workology, among others, have taken up the news of the British Chambers of Commerce July announcement - UK in ‘serious’ danger of recession. Chamber Online expressed concern that business taxation might rise, squeezing an already thin profit margin, borne out by falling cashflow levels in the services and manufacturing industries. That, added to the slowing up in house sales is making all of us decidedly twitchy…
So, how are small businesses, which make up around 80% Northern Ireland businesses, to survive the threatening wobbly period?
My mantra would be ‘In the long run..’
- Take the advice of a financial advisor and/or accountant you trust. Trying to figure out all the red tape, ways to increase your profits at the same time as reducing hte tax you need to pay all especially important, when cashflow may be waning a little. Yes, it’s another cost, but in the long run.. it may save you thousands. Rule of thumb: you should be able to get the services of an accountant for under 1000 per year. And, as with most service providers, it’s always best to have one recommended.
- The most obvious reactionary (and, short-sighted) response is to decrease prices. Yes, I used to fall into that mindset too. Of course, you may want to reduce prices temporarily, though it is more difficult to put them back up again. Value your product. Those providers who continually drive down prices de-value the service as a whole, and do the industry no image favours in the long term.
- Can you use the time to get resources replenished/revived, including your staff? What a perfect time to arrange some well-needed training. Does your stationery or business image need a make-over? Invest in an image coach or take some time out to get a new look for the office, or work premises. Call the web designer and ask him to get his finger out with a new online design.
- Planning. All too often, during very busy periods, things go by the wayside. Take this blog for example. We’ve been over-occupied during the months of April, May and June and therefore, the blog took a direct hit. You may have notived lean periods.
So, get the blogs written in advance, leaving space for those little reactionary posts just to remind people you’re keeping your eyes peeled. Or, arrange meetings with all your key managers and teams, to schedule in new projects or opportunities. Ensure everyone knows what the business direction is for the next six months, so when the orders start coming thick and fast, everyone is aware of what the priorities are and knows their active place (so to speak) in the team. - Finally, enjoy the quiet time. When was last time you truly took a break? For NI business manager/owners, it’s difficult to get away from it all, especially as there is often a home office as well as/instead of a ‘proper office’.
Step away from the laptop!
- Get yourself down to the Antrim Coast (see Giant’s Causeway shot above) and take a brisk hike along the sea wall. Can I recommend The Nook for a perfect Mocha afterwards? Your body and brain will thank you for it. There’s nothing better for invigorating that tired old brain, in order to face the remainder of 2008 with renewed va-va-voom!
