Wandsworth Chamber of Commerce Article

Over the past few years the business community has had a very tough time with the after effects of Brexit, Covid, the Russia/Ukraine war etc; now we are facing as a result of these ‘situations’; high inflation, increasing unemployment, high fuel costs, lowering productivity and now low economic growth.  Some say it’s the perfect storm for a full-on recession; so, what can we do about it?

It is doubtful we can expect any support from the Government, not with public sector debt at 94.8% of GDP as of Jan 2022.   This increased to 101.9% in the 2nd quarter of 2022; with an upcoming mini budget expecting tax increases and massive public spending cuts.

I’m afraid if we are to survive the next 18/24months it’s up to us; local businesses, entrepreneurs alike to prove to the Government that despite recent events.  The business community can and will survive. 

So here’s what we can do……

Firstly, there’s the lost art of budgeting and cashflow management.  This is something I carry out in both my professional and personal life and I must say it does make a huge difference.

By planning expenditure in advance and monitoring those expenses over a prolonged period, I can see whether those costs decreases/increase and if the change in cost is too great; make appropriate changes such as changing supplier or cutting out the item altogether. 

Another area to consider is to collaborate with other businesses, by sharing ideas and experiences, you may gain valuable insights into other markets you may not have tapped into before.

Another idea is to take advantage of all the perks offered by different trade associations/bodies.  For example, the Federation of Independent Retailers (FED) offer a range of services which can be highly useful to independent retailer such as Booker vouchers as one example.

I would also encourage everyone to attend networking events; trade shows to attempt to gain new customers.  In addition, it is always worth remaining in contact with past clients and even unconverted leads.  A dear friend and past colleague of mine Mr Michael Fairweather has demonstrated the importance of the follow up with unconverted leads.  His research suggests only 2.4% of companies follow up with their prospective leads at first contact.  Wow!  We are sitting on a potential customer goldmine.  What a difference could be made if we were to change this by adopting a good follow up system; and be able to extract that lovely gold?

In terms of financial products, I would look at invoice, asset and trade finance as areas to consider; as although these are just umbrella terms used to describe much more specific products. These are products designed to improve cashflow, liquidity and the supply chain; and when used together can increase productivity and help achieve your business objectives whilst easing the financial burden. 

I strongly recommend any business to consider these products; certainly as a way of lowering risk to outside and unexpected events but also as a secondary line of defence against late client payments, equipment breakdowns etc.

Moving on from this, and this is probably the most important recommendation I can make; Don’t be afraid to consult with others.  In my area of expertise I regularly advise my clients to consult with their accountant and solicitor.  Why don’t you?  Why don’t other business professionals consult with other expert professionals on specific matters?  By being a member of a chamber of commerce I often meet people from various different professions, different skill sets etc; and the knowledge, experience shared is critical to my success.  It was also boosted my mental health; by improving my confidence, by talking ideas through with other business people. I strongly recommend; particularly for sole traders and start up businesses who don’t always have the support of colleagues to work with to consider this point.

Another area is to think about education.  There are plenty of free courses provided by trade associations, banks, and colleges on specific areas.  Others of course are paid courses; but why not update your skill set.  I cannot think of any disadvantage to this.  Even if one member of your business partakes in a free or paid course, that staff member can share their knowledge and skills with the rest of the team

In conclusion, that despite the difficulties we will all face, there are plenty of options available to us. It’s just a matter of prioritisation and adapting to the changing economic environment.  This can only be done if we, as a business community work together.

For more information on matter on commercial finance products mentioned or on any other matter, please feel welcome to email me at [email protected]