Businesses
today face serious challenges as they set a path forward through unprecedented
economic uncertainty. According to a recent Blue Paper conducted by distributor
4imprint, combining research from the CBI and Institute of Directors, each of
the topics identified below are of paramount concern to business leaders alike.
Uncertainty
Generally
speaking, most people find great discomfort in uncertainty, and this is
particularly pertinent for long-term success in business. Uncertainty in the
global economy and the current recovery, uncertainty in the credit markets,
uncertainty in how environmental regulations will affect business and ongoing
changes in consumer behaviour all combine to show what appears to be a very
uncertain future.
Essentially,
uncertainty leads to a short-term focus and companies are shying away from
long-term planning in favour of a more short-sighted outlook. While short-term
goals are also essential, failure to strategically plan five or ten years into
the future can end up destroying value. The problem to be solved, therefore, is
to balance the need for a more reactive, short-term focus with the need for
informed, long-term strategies. For more information on how to balance your
short term plans with longer term strategies, visit our Strategic Planning
pages.
Regulation
A
changing regulatory environment is always of concern in certain industries, but
fluctuating energy, environmental and financial policy is causing concern for
nearly all companies today. Whether it is the demand from customers or
shareholders to become more “green” or the threat of increased costs due to new
carbon taxes, environmental considerations are among the biggest challenges
businesses are facing, and the sheer process of keeping up to date with
regulations can be overwhelming. Globalisation and the growth of foreign trade
has also added to the regulatory burden.
Understanding
international markets and the role they can play in your business growth may be
the key to survival for many firms but this comes at the cost of regulations
and legislation affecting how you do business in other markets. The problems to
be solved are to understand the meaning of regulation in your industry, its
implications for your business, and to develop the skills necessary to deal with
it. For more information on moving into international markets, download our
Exporting for Growth guide.
Cashflow
The
Institute of Directors (IoD) has reported figures from the credit reference
agency Graydon UK stating that six out of ten small firms have a poor credit
rating. Having a good credit score is important not only when you want to
borrow money but also as it affects your ability to secure good terms on trade
credit. If you are a fast growth company you can rapidly outgrow your available
sources. If you are an underperforming company you may not be able to secure
credit. The public sector and many large
firms are shedding jobs by the thousands, and, as a result, the economy is
relying on smaller businesses to create new ones, particularly in innovative
sectors such as green technology.
Without
bank support, these businesses will not be in a position to hire. For further
information on successfully securing credit, read our Guide to Raising Bank
Funding.
Waste control
Waste
control remains at the forefront of business strategy with many businesses now
looking for more sustainable ways to manage costs long-term having already
managed down their cost base through the recession. There is a distinct interest in streamlining
non value-added processes, in particular use of cloud-based technologies and
other shared services to ease increasing administrative demand.
Also
on the rise is the potential to outsource those activities not considered core
to business services to provide a more flexible and predictable cost base. This
would be particularly appropriate during a time of uncontrollable rising costs
such as fuel prices, raw materials and the higher VAT rate. To find out more
about managing waste control and reducing waste in your business, download our
Focus On Waste Reduction Programme.
Technology & Innovation
The
pace at which technological advances are affecting businesses today makes
capital investment in technology as much an asset as a handicap because a
competitor may decide to wait for the next-generation technology. Similarly, the ability for even the best of
technologists to stay informed about emerging technology is in conflict with
the need to master a company’s current technological investment.
For
smaller businesses, the matter of distinguishing which technology will garner
the highest return in terms of time and investment capital can be equally
problematic. The solution is to develop a long-term technology strategy while
remaining flexible enough to take advantage of unforeseen technological
developments. Visit our Technology pages to find out more.
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