The Implications for Your Company A new report by the RSA (Royal Sun Alliance) shows that 71% of SME’s are expecting their revenues to shrink or neutralise in the current year, with the leading cause being rising  costs and the rising inflation rate. Consumer spending rose at its weakest pace in April 2017 (0.5% year-on-year), and is expected to shrink further in the coming months. These factors mean business revenues could take a significant turn for the worse, with a collective decline in turnover of £252bn according to RSA. Some companies are calling on the government to do more to help the SME market, but what can we do in the private sector to reduce these risks? Business Preparation – What Can Your Company Do?

• Keeping an eye on the market; In a volatile economic world, it is important to stay up to date with current markets and be aware of new or planned legislation. Acclimatising to deviations in the economy is crucial for SME’s, and identifying changes as soon as possible will support that.
• Robust strategy; Understanding what your company wants to achieve and how you are going to do so in the existing market, and regularly revising it to keep up to date.
• Evaluate costs; Efficiently allocating costs whilst maintaining the customer experience. Limiting any unnecessary costs and potentially reducing your tax burden.
• Review cash management; This involves monitoring and analysing your current cash flow and your access to capital and comparing your budgeted performance to your actual results to review performance levels. These reviews can give you an idea of what course of action can be undertaken to enable the business to improve and reduce risk with the current economic volatility.
• Collaborate with external consultants; Hiring an advisor with special expertise in your business can be invaluable. It saves time allowing management resources to be applied elsewhere whilst adding crucial knowledge and proficiency to your business.

No company can shy away from the implications of our fragile economy and with future political and economic decisions still to be made we believe it to be imperative that some form of strategy is implemented to minimise the damage done, and to preserve growth in a tough time.   Here at S4B we have the resources to help you develop your company through our experience in industry, by combining financial support with strong commercial acumen. Please contact a member of the S4B team at [email protected] or on 01628 623444 to see how we can help you.