We might not be able to put a definitive date on when the UK officially pulled itself out of recession but it appears that the economy is definitely on the up.
The latest Market PMI (Purchasing Manager’s Index) figures for construction are at 62.4 and for the services sector, which represents 70% of the UK economy, they are at 57.7. Since any PMI score above 50 signifies growth, the indicators demonstrate that the challenges companies face are changing. No longer are businesses firefighting to stand still; now they need to identify and prioritise opportunities to capitalise on them effectively.
These are exciting and dangerous times for business: here are our top tips for riding the new wave of recovery:
- Be Informed
Information is everything and, in the Internet age, it’s available whenever we need it. Ensure that you are up-to-date with what your competitors are doing and what your customers want. Even if you have been operating in the same sector for decades, nothing in the business world stands still and, unless you keep yourself up-to-date, you may fail to spot risks or identify opportunities.
- Be Proactive
During the ‘lean’ years, there was a reluctance to spend on marketing but that can often be a mistake. Waiting by the phone for business to come to you is not a good catalyst for growth; engaging with customers and communicating a clear proposition is much more effective.
Cutting overheads during a recession makes sound business sense…failing to capitalise on opportunities due to an unwillingness to invest does not. It’s important to identify what you need for growth and put the finance in place to secure it.
- Consider Alternative Finance
Despite the Government’s Funding for Lending Scheme (FLS), many SMEs are still finding it hard to borrow for their business. Asset finance is often a more cost-effective and flexible option and specialist providers, like Praetura, can help you find the right solution for your business.
- Be Bullish
The time for waiting to see how the market is going to go is over. The tide of the UK’s fortunes has changed and you’ll miss the boat if you’re not ready. So have a strategy with a timeline for implementation and ensure you have the finance and resources in place to achieve the outcomes you want.