There is no doubt that the UK is heading towards a more challenging economy. As entrepreneurs, it can be easy to become inward-looking in this environment and potentially miss opportunities.
In this economy a positive outlook is essential. Indeed, a happy and healthy existence depends on having a positive view of oneself. According to research, those who are positive are better able to handle problems, reach their goals, take more chances, and make better decisions. In fact, it is the focus of a whole discipline called positive psychology.
Winston Churchill once said: “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” It’s an approach to life that drives everyone at Fresh Thinking Capital.
Being optimistic entails accepting any obstacles that may arise and viewing them as manageable because they are just transient bumps in the road to achievement. It involves cultivating a positive outlook and a can-do mentality. Although there is a lot of news about which businesspeople should exercise caution, chances for entrepreneurs abound everywhere.
Every entrepreneur should take certain actions to set up their company to seize chances when they present themselves. Positivity will be strengthened, and a culture of looking for opportunities to make improvements will be fostered by understanding that the organisation is in a position to act rapidly.
Putting yourself in a position to win.
Every business will inevitably accumulate extra expenses over time that are necessary for its effective operation. These could include extra pool cars, vacant offices, or sponsorships. Spend some time as a team examining each line of the P&L to find cost savings that could generate cash.
Find a funding partner who has invested the time to learn about your company and comprehends your values and objectives. They will be in a good position to act fast to support your company should opportunities occur that call for extra funding.
Consider expanding the markets for your current goods or services and creating new goods to diversify your portfolio. During a recession, it can be risky to put all your eggs in one basket. It’s a smart notion to consider original ways to create new cash sources.
Every market offers unique prospects, and there are always businesses that prosper throughout economic downturns. However, they are typically the ones who aim higher than merely surviving.
New technology can help unlock operational efficiencies and even address supply chain issues through enhanced data sharing. Investing in advanced technology could give your business an edge in a challenging market.
In the most competitive markets, innovation will fuel growth. It might appear in a variety of ways, including new business strategies, production techniques, and product offerings. To promote innovation and profitability, management teams require financial flexibility.
Your people are your biggest assets.
According to data released in September 2022, the unemployment rate in Britain fell to its lowest level since 1974. While the decrease was primarily brought on by a reduction in the workforce, in the three months leading up to July, the jobless rate decreased to 3.6%, according to the Office for National Statistics.
According to Reuters’ poll of economists, it was forecast to remain at 3.8%, which means the labour market will continue to be tight for businesses across a wide range of sectors. Holding onto your talented team members is essential for future growth.
Indeed, according to industry data, British manufacturers are facing the largest shortage of skilled workers since 1989. Retaining skilled people may be a challenge if the market takes a downturn, but it will give businesses the capacity to react to market opportunities and emerge quickly from any slowdown. Investing in apprenticeship schemes and wider training will help to retain talent in the business.
Technology can deliver accelerated growth.
The UK’s manufacturers are moving toward industry 4.0, where automation, AI and data streamline production and allow businesses to become more innovative. These efficiencies are already being realised and should be a focus over the coming years, even when the sector is facing headwinds.
Investing in robotics will free employees to undertake more skilled roles and become more productive. Research by McKinsey suggests that by 2030, the time spent using advanced technological skills will increase by 41% in Europe. The first step comes with investing in the technology and training staff.
Richard Branson said: “Business opportunities are like buses, there is always another coming.” It’s a quote that should be on every office wall over the coming months, where flexibility and an entrepreneurial outlook will drive success.
By Mel Hird, director of Fresh Thinking Advisory, a new debt advisory business to help SMEs find the financial support they need to grow.
