If there is one topic that dominates the airwaves, it is the economy and what will happen this year writes Melanie Richardson, Head of Corporate Business at top local accountants Swindells.
2011 was the year when the UK economic recovery faltered primarily because of the Eurozone sovereign debt crisis. Eurozone leaders appear to have adopted the actions of the Emperor Nero and “fiddled whilst Rome burns” not to mention Athens, Lisbon & Madrid!
In common with most businesses in the UK our clients have had to struggle to survive as cashflow continues to cause problems. It is a great tribute to many of the businesses I know, that they have survived because they display a level of ingenuity, flexibility and grit which will stand them in good stead for the year to come.
The next 12 months will be important for everyone with conditions remaining tough for some time yet. If your business survived the last few years you are in a good position to take advantage of opportunities that arise at time like these whilst also taking every step to limit any damage as a result of a continuing economic standstill.
Keeping on top of your debtors is vital, but remember that this works both ways and that your creditors will need to be paid on time too. Keep revisiting your business plans, circumstances can change suddenly and it is important to remain flexible. Do not rule out wise investment which can enhance growth and profitable expansion. Make sure you get good tax planning advice.
Opportunities could be as simple as making the most of the fact that your business has survived your competitors by shouting about it. Make the most of cost effective marketing. Learn the lessons from those that have been less successful and keep a sharp look out for expansion opportunities by acquisition. Having successfully led your business through hard times, there is no reason why you may not do the same for a new business.
