Is the credit crunch and ensuing recession really going to hit UK businesses in the way that the media is hyping at present, or is there hope?

 

The Recession-Fight Back Together!      

 

Is the credit crunch and ensuing recession really going to hit UK businesses in the way that the media is hyping at present, or is there hope?

Yes, the banks were lending too much, the vacuum of promises grew and it snapped back.  Businesses providing financial services have reported a definite tightening of the purse strings in terms of lending and the property market has slowed down in terms of sales. However the rental market is now thriving. 

Whilst there are some sectors which are struggling at the moment, this is not necessarily a picture of pure doom and gloom.  Obviously, in a Networking Newsletter, the powers of networking will be mentioned, however it does help to contextualise the current events in the economy. 

A large corporate business with a 30% market share will be hit hard if the market demand falls by 20%.  But, a small business with a tiny market share can adjust quickly and diversify swiftly.  The small business owner can take the opportunity to work harder, smarter, leaner and strengthen knowledge and skills to develop a solid business regardless of the state of the market, and a true entrepreneur can identify plenty of opportunities. And all this when the competitors are becoming depressed and sitting head in hands.  The key to success in hard times is to keep talking to other businesses, learning how they are coping and getting into a positive community where you can access good, strong support.  The Zebra have it right with the safety in numbers.

By collaborating with other businesses, a small business can massively strengthen their proposition, and also work towards their exit plan in  a positive way, with people who are familiar with the business who can become potential partners or even purchase the business in its entirety.  The support comes in a variety of forms, from simple explanations of terms, through to free consultancy, ideas, a fresh perspective right the way through to providing clients to help you develop your business. 

Don't waste time worrying about how your business will perform, take control of your situation and join a Business for Breakfast forum today!

By  Becky Hall  03/12/08

becky@bforb.co.uk