Over the course of the past year, a lot has changed in relation to the economic and financial landscape. As the UK has successfully gotten over the hangover of the COVID-19 pandemic, another crisis has hit in the form of the cost-of-living crisis. It’s needless to say that for many of us, it’s a real worry presently as well as in the foreseeable future.
Inflation is currently at 9% and is expected to rise into double figures later this year. Energy bills, fuel prices and the general cost of goods have risen drastically, leaving many people scratching their heads as to how to navigate the turmoil this ‘storm’ will bring. It’s important to remember that many of us have been here before. Not just over the last few years with the pandemic but also many of us witnessed first-hand the distress of the 2008 financial crash. This should highlight the resilience and experience of going through a recession, proving that through determination and support you can get through this.
At Nordens, we pride ourselves on going above and beyond what is expected from an accountancy firm. We admire our clients and will do anything for them to support and aid them both professionally and personally. We will continue to do this no matter what, so please if you’re having any troubles whatsoever in not just your business but also your wellbeing, then please get in touch with us and we’ll be on hand to support you.
We’re very fortunate to have invested heavily into our resources at Nordens, priming ourselves to be in the best possible position to help you when needed. There are some main things that we recommend when going through a recession or an economic crisis which I want to briefly outline:
Stay on top of your cashflow. Doing this will allow you to have full control and perspective over what you can do in your business, enabling you to have a full grasp of your financials which will allow you to scenario plan and discover gaps in your business.
Redefine your revenue stream. Make sure you have products or services available to every type of client or consumer regardless of price points. Commonly, when economic downturns happen, people tend to cut back on spending and source cheaper alternatives to necessities.
Shift your perspective into the eyes of every consumer you have, making sure you’re appealing to them with a variety of options which feels tailored to their circumstances.
Cherish your current client base and not just new clients. Your current clients have got you to where you are, so being loyal and concentrating on them is crucial. Focussing on bringing in new clients, often at the expense of existing customers, will result in your current clients feeling ignored and shunned.
Communicate with them through clear and personable messaging, making them feel cared for and respected.
Seek the support you need. No person in the world can do absolutely everything on their own. As a business owner, getting help wherever it’s needed is a sign of a good leader.
Whether that be financial support through securing funding or getting strategic advice to get you and your business running as smoothly as possible, at Nordens, we’re here for you and will help you no matter what you need.
Most importantly though, you need to take action… Don’t just sit around and wait or bury your head in the sand until these times are over. We genuinely don’t know what the future holds, and things could get a lot worse by not taking action. It could also potentially put you in a position that you wouldn’t have necessarily been in should you have taken action at the right time. If you are unsure on which action to take, this where seeking the support you need comes in as I mention above.
I want to wrap things up by reiterating that it’s easy to become embroiled in all the negativity regarding the state of the economy at the minute. By changing your outlook and perspective, you can view the uncertainty as a great way to refresh your business and inject some revitalisation into its heartbeat. This is a sure-fire way to exude positivity in your business, which will naturally spread to your team.
If you have not already, it’s definitely worth subscribing to our YouTube channel and our newsletter. We will be producing plenty of video and written content over the forthcoming weeks and months, delving into what you as a business owner can do to navigate through these confusing times, so be sure to sign up.
We can get through this together, sending you on the path to not only survive, but to thrive.
CEO of Nordens Chartered Accountants