It seems the mood has changed to a more positive tone amongst small businesses in recent weeks. There is a general consensus that conditions are improving.
This week, The Times in conjunction with Barclays, released results from over 3,700 small business owners, who were surveyed on how they felt about the recession. Overall, the survey suggests a much more positive view from small business owners in comparison to six months ago. Many feel that the weight of last year’s recession has been lifted and their outlook for the New Year is a lot more upbeat. In fact, more than 60% of respondents were feeling confident about the future of their business.
Switching priorities:
While last year the priority for small businesses was very much focused on keeping cost down and the doors open for business, the priority is now shifting to expansion and growth, with small businesses investing in the new technology, people and expanding their product lines. 53% of those surveyed planned to grow their business throughout 2010; this is a significant increase from this time six months ago when just 42% of respondents had the intention of expanding.
It’s obvious that small business owners have endured a tough year with their strategies being tested to the max. Only recently, it was reported that the UK economy was still in recession – yet, despite this, small businesses are showing real determination and grit, and now it seems, feel optimistic about their future.With this in mind, small businesses need to act with caution and make sure they stick to the rules of the recession, which means being more vigilant and maintaining tight cost controls. We’ve outlined some measures small businesses should take to help them succeed:
• Plan, plan and plan again – It’s essential for businesses to have a solid strategy in place - know your audience, business objectives and company goals.
• Good financial management is key - keep your finances in order and ensure you know exactly where money is being spent. Once you know your cash position, you can make manage your money to maximise return and make sure you don’t run into dent problems.
• Invest in technology for tracking VAT and making accurate returns. It’s important to keep on top of bookkeeping right from the start; otherwise there is a risk of forgetting crucial costs or, even worse, failing to invoice a customer.
• Have an online presence – this will increase your reach, make your more contactable and ensure you don’t fall below the radar. Online sales are on the up – recent figures from IMRG and Capgemini showed a 16% annual rise in online spending, so make the most of this growing market, and at the perfect time – Christmas is just around the corner!
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