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Michelle Ovens CBE, Founder of Small Business Britain
CAVSOC Co., Ltd.
After a long economic winter of high inflation, flat growth and persistent labor shortages, UK SMEs are looking somewhat optimistic for the rest of 2023.
But while this is a huge issue, the tough trading conditions that have characterized the UK economy since the Covid pandemic began have left their mark. Entrepreneurs may look forward to better times, but many of them also struggle with confidence issues. are reducing or stopping.and according to new information report issued by small business uk in cooperation with clear pay and squarewhich could hurt future growth.
This report is based on responses from around 1,000 small businesses across the UK. More than half are her one band, and about 35% employ her two to her nine. Only a handful of companies employ more than 40 people. In other words, the survey aimed to tap into the sentiment of companies often referred to as the ‘backbone’ of the UK economy but relatively unnoticed.
Anguish of Christmas
At first glance, the outlook for these companies looks relatively bright, with just over 61% expecting growth in 2023.
But the devil is in the details. Christmas is an important time for consumer businesses. But for many, his season of Holiday 2022, his first post-Corona-era season, was a disappointment. 10% reported that the deal was not going well, and more than 30% said it wasn’t as good as usual. Businesses that are able to turn a profit in November and December are well prepared to deal with the challenges of the coming year. Poor Christmas sales take away an important buffer.
Accumulation of trouble
But the report’s authors are more concerned about falling investment. Nearly a third of companies have delayed their marketing spend and 27% have cut it. Recruitment slowed down.
So are UK SMEs hoarding trouble for the future? Small Business Britain was founded to be an advocate and advocate for small business. I spoke with founder Michelle Ovens (CBE). We first asked how they would sum up the atmosphere at the companies participating in the survey.
“There is general consensus that things are tough, but things are going on anyway,” she says. “Everyone feels it’s tough, but there are signs of optimism.”
But Ovens says cutting back on marketing is likely his goal. “You can’t stop marketing,” she says.
That’s true, but it’s not that some companies (actually quite a few) have looked at the deal situation they’re facing and concluded that they need to cut spending, with marketing as the obvious candidate. , which is probably understandable. Unlike wages and other fixed costs, they can be increased or decreased.
That’s something Ovens acknowledges, but she encourages small, cash-strapped ventures to think about ways to market more cost-effectively. “Companies can invest time instead of cash,” she says.
One way to do this is to use digital technology (social media is an example) to reach your customers without spending a lot of money on advertising and traditional marketing campaigns.
But the study also found that business owners are less willing to invest in mastering digital tools. For example, it doesn’t necessarily matter if the kid is already a bit of a genius when it comes to his social media involvement and making short films for his Tik Tok, but not everyone does. . Ovens said business owners need to brush up on their digital skills.
Ovens emphasizes that adoption of digital technology, let alone marketing, does not necessarily have to be expensive. Inexpensive or free software and online courses are available. But it takes commitment and time.
As she admits, it’s not a silver bullet. TikTok videos and Facebook campaigns are not effective for everyone. “But we want people to try it,” says Ovens. The results are impressive.
lack of confidence
Perhaps the bigger issue here is confidence. If the combination of COVID-19, inflation and consumer austerity policies hits and overwhelms businesses, owners could lose confidence in their ability to sell and even make good decisions. I have. Once decisions are made, Ovens says, there is a risk that drivers will panic instead of proper strategic thinking.
And confidence can be fleeting. I won hard in the face of adversity and lost easily. “Some people say, ‘I lost my mojo,’ or something like that,” says Ovens. “But we’re talking about people, so we all have our moments.”
So what should you do? Ovens recommends finding a mentor. Equally important, finding the “tribe” also helps. Other business owners and advisors who can provide mutual assistance and trade information. More fundamentally, even taking a break can help. Go for a walk or take some time to think about the big picture.
The report also recommends creating a new business plan is a good first step and taking steps to build resilience.
The optimism among SMEs, albeit self-declared, is good news, but with trading conditions still tough, many will focus on day-to-day survival rather than long-term growth plans. This can lead to problems further down the line.