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Knowledge is Power: Small Business Guidance for the Current Economic Climate

If you have never seen artist Janet Echelman’s aerial net sculptures, you are missing out on a truly seminal small business lesson. Her pieces, which rely on interdependencies between different materials, elements and techniques, embody the relationship that exists between the numerous factors that drive start-up growth.

In addition to a number of universally important factors, there are other elements that change depending on the prevailing economic climate. Make no mistake; it is your start-up’s ability to successfully negate these challenges that will determine its real-time performance and growth potential for the future.

3 Key Pieces of Small Business Advice for the current Climate

With this in mind, it is worth considering the current economic climate and distinguishing the small business advice that can help your start-up to grow. For example: –

Place your Faith in Youth

While unemployment in the UK has recently fallen to just 4.9%, the spectre of Brexit and similar economic challenges is making employers loath to invest in younger, unproven talent. This is why youth unemployment remains disproportionately higher, and this may well be something that your start-up should look to change.

The government recently offered a financial incentive of £2,000 to small businesses that were willing to take on apprenticeships, for example, while employing such young and hungry talent can also reduce your wage bill as you consolidate your venture.

Beyond this, placing your faith in young talent also helps to build an engaged and motivated team that can grow organically with your business.

Be Prepared to Invest Strategically in your venture

While the current economic climate may be volatile and perched on the brink of a recession, it is counter-productive to slash spending and wait indefinitely until the landscape improves. Instead, it is better to determine a viable budget for spending, which is then invested strategically into the most deserving aspects of your business.

A youth recruitment drive may be a key part of this, particularly as this will not consume a significant percentage of your budget. Service providers such as mechanics must also be prepared to make an initial investment in essential and high-quality equipment, with suppliers such as SGS Engineering playing a central role in reducing costs for start-up brands.

Regardless of your niche, however, the key is to budget precisely and identify the strategic investments that will impact positively on your bottom line and drive sustainable growth.

Introduce Flexibility to your Business Model

The main issue with the Brexit vote is the inherent uncertainty that it has triggered within the economy, even before Article 50 has been triggered. While this poses a challenge to small businesses, however, this is not insurmountable if you are able to introduce flexibility into your business model.

Diversification may play a part in this, especially for product-orientated brands that are able to sell a dedicated range through various channels. You can also look to achieve such flexibility by arriving at impermanent but viable solutions to commercial issues, such as the use of freelancers on individual projects and the procurement of pop-up premises or retail locations as demand begins to rise.

These steps create a flexible model that can be adapted quickly and efficiently, depending on the prevailing economic climate and the performance of your own particular market.

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