The recent coverage of the 80th anniversary of the D-Day landings was, for me, a poignant reminder that, no matter how bad the years building up to that date had been, people never gave up hope. It was a turning point in the war and from that day onwards, there was an end in sight.
In the words of an icon of that time Dame Vera Lynn: ‘keep smiling through, just like you always do, ‘til the blue skies chase those dark clouds far away.’ How poignant those words are when we look back and reflect on the adversity they faced.
Fast forward to the present day, and these words also relate to conversations I am having with business owners right now. I think many can be forgiven for hoping that their own turning point is finally approaching as, let’s face it, economically it has been four tough years.
There are already some positive, tangible economic signs to take encouragement from, and not all business sectors in the region are struggling. IT, engineering, marketing and PR are sectors which all seem to be doing well now, and more able to make headway, achieve growth and greater profitability.
This time last year, I was writing about how business owners should tackle inflation which had reached a high of 11.1% in October 2022. It has now dropped to 2.3%, and it is expected to fall to around 2.2% by the end of this year. Also predicted to fall are interest rates, with experts expecting them to be 4.75% by the end of the year.
These are the turning points which many businesses have needed for that cautious optimism to return, but there is still a long way to go for some individual business sectors, and I want to encourage business owners in these sectors to hang on in there, as I believe there will be a turning point for them soon.
Hospitality businesses still have many challenges ahead of them as they have been affected so much following Covid, the cost-of-living crisis, the effect of the war in Ukraine, train strikes and bad weather over the past couple of years.
That said we have a summer of festivals and events taking place across the county, including Brighton Pride from August 2nd-5th, which is still the largest Pride festival in the UK, and the national and international events which bring us all together, such as the European Championships football tournament and the Paris Olympics.
It was also encouraging to see businesses in this sector working together recently and using the bodies that represent them to give them a stronger voice nationally, so that government continues to understand the challenges they face.
Charities is another sector where many are struggling due to the increase in demand for their services during the pandemic, and now the cost-of-living crisis, whilst many have had their funding cut.
I would encourage businesses in both these sectors to give some thought now to the next few months and what they can do to get to the end of the year without further issues arising unexpectedly.
We don’t yet know the outcomes of the various elections here in the UK, in Europe and in the US later this year. However, we can expect that there are going to be changes, so thinking about these outcomes and the risks they present to your business are important.
Charities already need to have a risk register but it is good practice for all businesses to have them and to plan how they will respond if the risk happens. This risk can present as a rise in the minimum wage, additional taxes or changes to the movement of goods / people in and out of the UK. Once you have identified the risk, you can put a plan in place to deal with it and understand if there is a cost implication for your business which could impact your pricing model. Controlling costs is still a key issue for many businesses.
Equally, are you ready to scale up to take advantage of new opportunities when they arise? We know in many sectors it is still difficult to recruit staff but is there anything you can change about your existing hiring practices now that mean you can draw on a bigger pool of people when you need them?
Have you explored opportunities for diversifying your business? For example, if you are a restaurant owner, have you considered whether you could hire out your restaurant to a ‘pop up’ kitchen on your closed days? Or can you work in partnership with others to host something new and different which showcases your food to a new audience?
The point I am making is I believe we are now at the point where the clouds are lifting and there should be more certain and predictable times ahead. Make sure you and your business are ready to make the most of it. After a storm, the sun shines more brightly and I am sure I can see its first rays on the horizon.
