Over the next week, we will be generating a ‘survival guide’ for you and your business with ‘hints’ and ‘tips’ from industry specialists. Using data collected from the ONS we hope to boost confidence and to help navigate you and your business through difficult times.
Based on models produced by the ONS (office of national statistics) what we saw before, during and after the 2008 economic downturn which, over 5 quarters saw a 6% shrinking of the market. It took 6 years (2015) to recover to pre recession levels. At the moment due to the downturn, many financial specialists are predicting a 14% shrinkage of the market.
So, what can you do in insulate your business?
Investment: Essentially, based on financial metrics, the best way to navigate through any economic downturn is to invest in infrastructure, staff and ultimately pipeline. Using statistics collated by the ONS and Legal Assistance for Economic Reform (LASER), businesses will generally see a positive effect two quarters after investment/implementation and, somewhat unsurprisingly, those businesses who were forward thinking by maintaining or began investing in their business in April, May, June or July 2009 were able to time the impact of investment, i.e. market upturn, and beat pre recession levels much sooner than their peers.
The benefit we have over those businesses is; a) We can predict with some accuracy when this pandemic is due to end – meaning investment models can coincide the positive impact of the investment ‘upward trajectory’ with markets being reopened b) Funding is being made available in the form of BBLS and CBILS from the government who are affording relaxed rates of interest (1.4% to 2.5%), extended terms (24 months to 72 months) and a 12 month repayment free period.
SME Finances, along with our partners, specialise in sourcing finance for businesses hoping to expand their portfolio of assets, create cash flow or consolidation. Click, connect and stay up to date with one of our in-house specialists to find out how we can help your business in the months to fellow with free advice and planning service.