By combining common business practices with more innovative methods, some firms are seeing an upturn in trading performance and are in fact, growing increasingly confident about the future.
Exploring opportunities overseas, taking a bolder approach to product innovation and putting greater investment in staff development are just a few examples of how some businesses are excelling in the current climate.
The most recent GDP figures from the Office for National Statistics that show the UK economy contracted by 0.7 per cent in Q2 2012 will have been greeted with a chorus of groans from the general business community.
But according to Edward Winterton, commercial director at Bibby Financial Services, business owners and managers in the country are helping the UK avoid a descent into the economic quagmire by carefully implementing a number of recession-busting tactics.
He says: “Business wisdom, strategic planning, cash flow protection and cost monitoring remain as imperative as ever. But product innovation, investment in staff and new markets, as well as a willingness to take risks, are also key to commercial growth.”
A number of companies are heeding this advice, enjoying the rewards and challenging the perception that it’s all doom and gloom out there. Indeed, Bibby Financial Services’ latest quarterly Business Factors Index, which tracks the performance and outlook of 4,000 business owners, revealed a third of firms in the UK remain positive about the future.
So, exactly which tactics are firms employing to foster this confidence – and are managers’ levels of optimism warranted?
According to the Index, more than two thirds of businesses have moved to stave off the threat of the recession by introducing cost and overhead cutting programmes, with more than half (55 per cent) opting to manage debt more rigorously. Meanwhile a quarter, 24 per cent, have chosen to increase their prices.
And, the effects of these measures are clearly paying dividends as 38 per cent of firms are experiencing an increase in new customers while 44 per cent have seen lapsed customers returning, leading to 23 per cent of firms enjoying a rise in customer orders.
Historically during economic crisis points, those who are willing to innovate, strike out, take a risk and create new markets are more likely to reap the rewards. And Bibby Financial Services’ research bears this out, with more than one in ten businesses currently exploring overseas markets in search of new opportunities.
Edward Winterton adds: “There’s no doubt this is a tough time for businesses in the UK. But companies which implement smart, robust commercial strategies, ensure the appropriate funding facilities are in place, demonstrate an ability to adapt to market conditions and remain positive, committed and brave are more likely to not only survive the recession but benefit from the upturn when it comes.”