At Ward Goodman we deal with a large number of clients in the SME sector. It is our view that the following are some of the key issues facing business in the next 12 months
Employment remains tough; we expect to see an increase in the proportion of SMEs reducing staff pay or hours to manage costs.
Similarly, the proportion reducing temporary staff numbers is likely to increase, and the number reducing permanent staff is likely to increase too
Unsurprisingly, maintaining cash flow tops the list of SME concerns for 2011
Declining sales and the increase in the VAT rate is a concern particularly for the retail market
The biggest driver for businesses moving into 2011, as they attempt to remain in profit, is the ability to diversify their products and services
It is clear that Christmas is a crucial trading period, even more so with the VAT rise in early January. The Governments proposed "austerity measures" hang ominously over consumer spending for the year ahead.
We know that small businesses are a resilient community but it looks as though the coming months will test them to the limit.
We think the keys to success over the next 12 months are;-
1. Be creative
2. Be entrepreneurial
3. Practice good, solid business skills.
4. Plan and prepare. Revisit your business plans regularly to make sure you know how your business is performing.
5. Make sure you keep your staff informed and look to them for inspiration.
6. Keep yourself informed too and make use of the wealth of specialist advice that is available
If you want to review the position of your business and ensure you are doing all you can to achieve success in 2011 then please contact Richard Dare on 01202 875900.