The one thing that business needs at the moment is clarity!
The recently announced Budget, combined with the Government’s route map out of the pandemic, provides a long-awaited guide to how business can at last move forward after Lockdown 3. With a further Pandemic Support Package in place, the desire to underpin the recovery after a full year of business disruption is welcome.
The pandemic has sparked a major social, economic and technological transformation that is playing out before our eyes. We won’t revert back to our old ways of living, working or doing business once the worst of the crisis has passed.
With the roll-out of mass vaccinations, the future is becoming a little clearer, but uncertainty remains, which knocks business confidence.
Of course, it is difficult to predict exactly how long it will take to get back to pre-covid levels of activity. This begs the question what business owners or senior managers can do for their companies today. How can you mitigate the challenges of the road ahead, while you try to navigate through the unknown? There is no readymade template to chart a course through a pandemic.
State of the economy
The economy shrank by a record 9.9 per cent in 2020 as the country spent most of the year battling the pandemic. The slump is the largest in living history, but the news was not all bad, however, as the final quarter of 2020 actually saw growth of 1 per cent, leading the UK to avoid a double-dip recession.
The service sector powered growth in the run up to Christmas, with looser restrictions on hospitality playing its part in aiding the prospect of a V-shaped recovery. The third quarter of 2020 also saw revised GDP growth of 16.1 per cent – but the country is still down year on year and entered 2021 under harsh pandemic restrictions.
The economy has experienced a serious shock as a result of the pandemic, which has been felt by countries around the world. There were some positive signs of the economy’s resilience over the winter. Despite avoiding a double-dip recession, with output still well below pre-pandemic levels, 2020 proved to be a historically bleak year for the UK economy.
Economic growth for Q1 2021 will also look grim as a result, but the positive vaccine rollout news should break the cycle of slump and recovery. However, growth will only pick up from the second quarter onwards as restrictions ease on the back of a successful vaccination rollout.
The question is, are you ready to come hurtling out of the starting blocks now that you know the national plan? With a combination of a clear route outlining a path out of the pandemic and a budget to ease our way back to financial health, the time has come for Britain to get back to business.
Make no mistake, the pandemic has wreaked havoc across the entire UK, and all businesses, both large and small, will play an important role in their contribution to return to growth, which is vital for the UK economy, particularly taking Brexit into account as well.
Company owners and managers need to be aware of the challenges facing them, and fine tune their business models accordingly. Tomorrow is certain to be very different and more challenging, which means you should have the right advice to support your post pandemic business objectives.
This begs the question what business owners or senior managers can do for their companies today. How can you mitigate the challenges of the road ahead, while you try to navigate into the unknown?
Now the good news…
There are several things that you can do to reduce risk and exposure to your company, some of which we have highlighted in our previous communications. We consider now is the time to take massive action.
To do this, companies must clinically look at their business, and review every aspect of it, and ask some tough questions. No one knows your business like you, but sometimes you can get too close to it, and overlook some vital indicators. This is where external expertise comes in.
Check out Auditel. We are a business support services company that advises companies in the following key areas:
- Cost Control & Reduction
- Procurement Strategies
- Supply Chain Management
The one thing you can control within your organisation are costs and overheads. Many of these areas are indirect, so are often unseen, and can be very expensive if not dealt with sooner rather than later.
Hidden costs often need an independent, external professional to run the slide rule over what further savings can be made. There has never been a greater need for business to re-think what they do.
You cannot afford to stand still. Now is the time for action!
Make the call to Auditel – it could be the most important call you make this year.