Is UK plc really on the road to recovery?

It may have been a long time coming but the latest economic indicators certainly suggest that there are genuine green shoots and the start of a recovery. 

We have seen GDP grow in the first two quarters of 2013, reduced unemployment, rising house prices, increased new car sales and even a sense of optimism replacing the gloom and doom of national commentators!

People seem to be generally happier this year buoyed by the sunny summer, royal baby and the continued British sporting success following on from the Olympics in 2012. Victories for Justin Rose, The Lions, Andy Murray, Chris Frome and England’s cricketers thrashing the Australians have certainly added to the feel good factor; even England’s much maligned footballers got in on the act beating Scotland, but tougher challenges lie ahead for them!

So how is the perceived economic recovery affecting small businesses, who are the life blood of the UK economy? Well as a small business owner myself, I can say that there certainly appear to be more opportunities presenting themselves, although the market place remains very competitive.

Over the last few weeks, I’ve had a number of conversations with professional advisors from banks, lawyers and accountants and there is a general consensus that a lot of the companies they look after are now hoping to move their businesses forward, and away from the survival mode they’ve been in for the last few years.  

However, expansion and growth gives fresh challenges to businesses, as history tells us that more businesses start going bust as we leave a recession because it’s easy to overtrade and run out of cash. This emphasises the need to have good solid operational and financial controls and procedures in place, making sure that any growth is controlled and any cash requirements flagged up well in advance.

So what do the next few years hold in store for UK plc? The announcement from the Bank of England that interest rates are going to be kept at a low rate for the foreseeable future gives a great sense of security for business. Hopefully this, allied to the improved economic figures, will give businesses more confidence to start spending money on projects they have put on hold, which will then filter through to the SME market and help boost the economy further.

It has certainly been a long hard road to recovery but I remain optimistic that the current signs show a recovery is underway. A nice steady upwards growth curve over the next few years for UK plc will do nicely, thank you very much! 

Colin Spencer

Chairman

Image courtesy of thanunkorn

/ FreeDigitalPhotos.net

11 years in power; one tremendous divide in opinion

It seems most appropriate to use that somewhat overused and infamous brand strapline to sum up the nation’s divided opinion of the late Margaret Thatcher – ‘you either love it or you hate it’. Not a fan of using such a strong word as hate, but her death has certainly conjured up reactions resembling the uproar she caused during her time in power.

I should really state at this point my first hand experience of Mrs Thatcher is hugely limited, having been born in the late 80s (I was a bambino of the John Major era). Therefore my musings are simply a view of the nation’s reaction. It’s great to see younger generations discuss, engage and debate politics, but rioting, jumping on the download bandwagon to ensure a certain song  commemorates her passing and publishing poorly formed tweets are pretty despicable acts and certainly something this twenty (something) year-old cringes at.

Throughout history there have been notoriously loved and hated public figures...Richard III, Robin Hood, Jeremy Clarkson, (Damien Hurst, Bansky, Tracey Emin, Germaine Greer, Jade Goody, Russell Brand, list could continue). The two things that make me sit on the fence about Margaret Thatcher, are firstly, she was a woman, our first lady Prime Minister; although I’m pretty sure she wasn’t a bra burning women’s libber, there is a great deal of respect to be had for someone who achieved such a historic landmark in a time when “equality in the work place” was far from common practice. Secondly, this iron lady served and stood as Britain’s PM for an impressive 11 years, winning three general elections. Talk about stating the obvious here, but to win a general election you have to be voted for.

You don’t receive the title the ‘Iron Lady’ for being a pussy cat, from my understanding Lady Thatcher knew what she wanted and indeed how she was going to get it, regardless of who may have been standing in her path, which is where the divide appears - those who fell fowl to the changes she implemented and those who believed the changes were for the greater good of the country. Perspective and experience is everything.

There will undoubtedly be conflicting views and opinions on any public figure that is charged with representing the interests of all of us, despite the way we vote. Tough choices will bring hardships, often to those least equipped to deal with it. But what is central at times when these tough decisions have to be made, is the buy in of trust. Trusting an individual in power - much like the reputation of a business – can take years to gain and build upon. However, all that hard work can come crumbling down in a split second – especially in today’s world, thanks to our ever evolving social media habits.

Like her or loath her, Margaret Thatcher left a legacy that changed Britain forever.

Alex Underwood

Account Executive

The resolve to succeed

Bitter economic chill, but are there blue skies ahead?

As we approach the end of the first month of 2013 there has been a lot of negativity in the media – with the prospect of a triple-dip recession, well known brands such as Jessops, HMV and Blockbusters failing to cope with the changes in technology, and the snow causing havoc for businesses.  It’s been rather tiresome watching endless reports from roadside TV crews telling us how bad the conditions are.

Have we heard all this negativity somewhere before? Well, yes we have. Cast your minds back to early Summer 2012 when we were told that the Olympics would be a disaster with transport chaos, security issues, problems with ticketing and lack of British success.

Last weekend, starved of my staple diet of Saturday afternoon National Hunt racing on Channel Four, I decided to watch a DVD of the 2012 Olympics. It really brought home to me what an amazing event it was and how the huge negatives were overcome to prove that it is possible to be successful, even when everyone tells you that you will fail! As Lord Coe said in his wonderful speech at the closing ceremony: “When our time came, Britain did it right”.

But why were the Olympics and Paralympics so successful, and how can businesses take inspiration in a difficult economic environment so that we too can look back in a few years and say “we did it right”?

It’s my opinion that the key drivers behind the success of London 2012 were leadership, organisation, planning, teamwork, public enthusiasm and a strong desire to make it work!

Sebastian Coe was a brilliant middle distance athlete and a double Olympic gold medal winner in 1980 and 1984. He was involved in the London bid from the start and took over as the chair of the bidding committee in 2004, playing a huge part in the successful bid in July 2005. Coe then became chairman of LOCOG and has shown himself to be an outstanding leader and was a major reason for the success of the Games. Every business needs leaders who are able to provide focus, motivation, inspiration and provide solutions to problems as well as a strong resolve to get things done. That’s something that my Board has considered closely this last year, prompted by my colleague Sarah’s participation in LEAD, the unique leadership development programme run by QuoLux.

Of course Coe could not do everything himself. He headed up a strong LOCOG team to make sure that the organisation was in place to execute the extensive plans. Construction of Olympic sites was based on redevelopment with an emphasis on sustainability. The major redevelopment was the Olympic Park built on a former industrial site in Stratford, although existing sites were also used. The construction programme came under the authority of the Olympic Delivery Authority and the success of two large organisations working together emphasises the need for having a clear vision and mission with succinct plans, clear milestones and regular reviews.

The final cost of the Olympics is estimated to be around £9 billion, which also emphasises that any strategies must be accurately budgeted and re-forecast. While it would be unlikely for most businesses to have a project of this scale, it does highlight the need to look at your business, consider areas where growth is likely to occur, and look at areas that are not so profitable. The recent collapse of the high street stores shows how they have been slow to react to change and their businesses have been severely damaged. It helps to have good financial direction to ensure that it is possible to achieve product and customer profitability, as well as the ability to regularly update profit and cashflow forecasts. This message has been at the heart of my career as a Financial Director, and one that I’m keen to share with other small businesses, which is why I have become an Associate Director of SouthWestfd.

The volunteers, police and military were a huge success displaying great enthusiasm and making sure that everything ran smoothly on the days of competition. The uniforms of the Games Makers became very iconic. These were the workers who made things happen; they were fully aware of what was expected of them and ‘lived’ the vision to make the Olympics a huge success. We can make sure that all our employees are motivated by taking an interest in them, letting them know what is expected of them and how we can help them to develop. Teamwork is a key component in making businesses successful, as well as delivering the vision for the future.

The huge public enthusiasm for the Games meant that sports not normally in the limelight were in the headlines. The success of our British competitors helped and also gave a tremendous feeling of national pride and optimism.  Let us hope that there will be a lasting legacy for the Games and we can encourage more people to participate in sport.

So as the sun filters through the clouds at the end of a snowy week, are things as bad as the media would have us believe? Well, it is certainly a challenging time to be running a business. But if we can take inspiration and learn from the success of London 2012 and have a strong resolve to succeed, there is no reason why we cannot say in a few years: “we did it right”.

Colin Spencer
Chairman, Target PR