Britain is reacting to the recession by starting up more small business and working from home, new sales figures have revealed.

Demand for home office equipment has jumped by over 200 per cent in the past year alone, says supermarket Sainsbury’s.

The move may be welcome news for Chancellor [...]]]>

More people working from home

Britain is reacting to the recession by starting up more small business and working from home, new sales figures have revealed.

Demand for home office equipment has jumped by over 200 per cent in the past year alone, says supermarket Sainsbury’s.

The move may be welcome news for Chancellor George Osborne who believes that the answer to the UK’s debt problem may lie in encouraging enterprise and commerce at a grass roots level.

“There’s no doubt that working from home is going to the future for thousands of workers all over Britain.”

The trend towards home working may also be good news for the environment, reducing the need for commuting and fewer car journeys.

Workers who have been made redundant are deciding to go it alone, using their knowledge and skills to form their own fledging companies rather than seeking employment elsewhere.

In addition, larger companies, seeking ways to reduce costs, are now actively encouraging more employees to work at home rather than occupying expensive office space.

A further push is coming from employees who see working from home as a much better way to create a life-work balance rather than facing the daily commute.

With the arrival of high-speed/low-cost broadband, ever increasing capabilitues of home computing and a growing trust and belief in web-based enterprises. It is now easier than ever to setup your own business on-line and it looks like this recession my change the face of our economy and British enterprise for good.

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Now the arrival of a severe economic downturn and un-relenting pressure [...]]]> Over the last 10/15 years the pressure on independent retailers has increased as the dominance of the supermarkets has expanded. The numbers of independent retailers are at an all time low and those who are surviving are finding profit margins squeezed more than ever.

Now the arrival of a severe economic downturn and un-relenting pressure on the high street, will independent retail survive?

Supermarkets have changed the retailing landscape for ever and the dominance of the big four is greater than ever – 1 in every £3 spent in retail is spent in Tescos. Price wars have eroded profit margins and independent stores just can’t compete with the stack em high, price em low mentality that the grocers are displaying.

Its been a painful trend for the small shopkeeper and it doesn’t look like improving much in the near future, so what can the independent retailer do to survive in this market?

1> Understand your role – What role does your shop play in the consumers routine? Are you mid-week top up? Weekend beers and snacks for a big night in? Tobacco and a  paper on the morning walk to work? Find out what the majority of your shoppers use you for and make sure you have the products and the layout to make the most of your consumer demographics.

2> Don’t go toe to toe with the supermarkets – If Somerfield down the road are hammering the price on beer and wine, don’t throw all your profit away by trying to compete head to head on price. Look for a point of difference, range, pack formats, service. Whatever you can make your USP use it.

3> Make the shopping experience a pleasant one – It might sound basic but the number of independent retailers who have dirty shelves, cluttered aisles or a confusing layouts is astounding. Today’s shopper expects high standards, don’t let your shop disappoint, and remember your personality and attention to your shoppers needs will make you stand out from the supermarkets – make the most of it.

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Whilst Small Businesses will undoubtedly feel the impact of the reduced availability of credit and a contraction in the spending of both business and [...]]]> With the recession in full swing and its impact being felt throughout the economy now is the time to make sure your business is ready to stand up to the test.

Whilst Small Businesses will undoubtedly feel the impact of the reduced availability of credit and a contraction in the spending of both business and consumers, there are a number of strategies or ideas which they can implement to help them through these difficult times.

Three areas which you can focus your business are:

Attitude and Agility

Whilst attitude may seem a little simplistic and maybe more a kin to the ‘PMA’ philosophies, your attitude to the business and the industry in which it operates as your company’s leader is extremely important in motivating your staff to keep driving the business forward in seemingly desperate times. As the leader of your business it is your attitude that will determine the determination and engagement of your employees.

If you are a single person enterprise a positive attitude will enable you to keep focus and maintain your alertness to new opportunities within your market.

Your agility or more specifically your business’ agility will prove invaluable in a difficult trading environment. Your advantage as a small business over your bigger competitors is the ability for your business to remain agile and to react quickly to changes in the market. You as a small business owner can make quick decisions to seize opportunities much faster than a large business which will need to mobilize great swaths of personnel and compete numerous rounds of decision making meetings in order to change cultural behaviors.

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

Charles Darwin

Keep alert to market changes and remain positive in your attitude to them. Allow your business to remain agile and maintain the speed at which you react to these changes. Remember to take advantage of change you don’t need to be the first or the pioneer but being part of the early minority will prove extremely rewarding.

Value

Your customers and clients are also finding times tough at the moment and they will be challenging their employees, suppliers and customers to deliver more value then ever before. If you can position your business and its products or services as one of great value then you will have a great competitive edge, but do not take value to simply  imply lower prices. The businesses that will thrive in this value driven environment will be the ones that deliver value in more creative ways. Some questions to ask yourself when considering your firm’s value proposition are;

1. What value do we add to our customer’s business?
2. What value do we add to our customer’s people?
3. What do our products/services deliver in terms of value?

Competitiveness

Again the majority will see competitiveness as simply a price war and whilst price is an important issue in a recession just cutting costs out of your business in order to reduce your prices is not a sustainable strategy. When implementing a cost cutting exercise never remove anything from your business that will lower your competitveness on service or value.

If you are beginning to see your business become uncompetitive within your industry, don’t take drastic and sudden action. Invest the time to really understand where you have lost your edge and look at what your competitors have implemented or changed.  Analasye your market and understand your future within it, utilise Porters Five forces (see our short article for more details) to understand where the pressure points are within your industry. Most importantly take advice from as many sources as possible. The decisions you make now will determine the future success of your business.

In Short…

Businesses which successfully address the issues raised will create a greater chance of survial through an economic downturn but whether times are good or bad any business leader/owner/ entrepreneur should constantly develop their business in these areas to increase their levels of success.

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