Get off to a healthy start in 2019
In 2017, 14.2% of London businesses ‘died’. Second place for business ‘deaths’ was the East of England at 12.8%.
The annual creation of new businesses (‘births’) has fallen for the first time since 2010. Whilst business births still outnumber business deaths the margin between the two is the lowest since 2012.
Only 43.2% of businesses survive for 5 years (2012/17). In the hospitality sector the survival rate is just to 34.2%. Read the ONS report here.
With Brexit looming, GDP growth slowing to 1.7% (2.1% average 2012/17) and two increases in the bank base rate – how can businesses buck the trend and prosper in 2019 ?
Bored with Brexit ? – plan for it anyway
A CBI survey found that only 44% of smaller SMEs had planned for likely Brexit scenarios (76% of larger SMEs have done so). Both importers and exporters might need to renegotiate supply agreements to clarify which party will be liable for customs clearance, import duties and how VAT will be dealt with. The effect of tariff increases on imported goods and components will need to be quantified as will possible supply chain disruption due to customs delays. Product specification, certification and labelling may also no longer be compliant. The ICAEW has a useful checklist here.
Review your pricing
Most businesses are reluctant to increase pricing for fear that they will lose customers. Trying to retain business on price alone rather than quality of product or service is a precarious long-term strategy. Price yourself fairly, but ideally 50% of prospective customers shouldn’t be able to afford you !
Trim your overheads
The quickest and easiest way to boost profits in any organisation – but a route that’s often overlooked or not optimised. Auditel are experts – click here to find out more.