Cleantech and renewables are expected to become two of the most important sectors of the economy according to a survey of UK business leaders, commissioned by the department for Business Innovation and Skills.
The new survey questioned business leaders from across eight sectors and found that nearly half (43 per cent) of those questioned believe that cleantech will grow at the fastest pace by 2020, followed by science and technology (20 per cent) and media and entertainment (15 per cent).
The survey highlights how the current economic climate presents new opportunities for new areas of the economy to thrive.
Combined with a growing awareness to find solutions for some of society’s greatest challenges – from tackling climate change to supporting an ageing population – investing now in innovative, high-growth areas will be essential for bolstering the UK economy once recovery kicks in.
Read more: Department for Innovation and Business Skills
www.ukba.co.uk
Showing posts with label growth. Show all posts
Showing posts with label growth. Show all posts
Wednesday, 9 September 2009
Thursday, 21 May 2009
Around 60% of small and medium-sized firms in London are concentrating on expanding their businesses during the recession
The survey of more than 3,000 small businesses in the capital found that despite three-quarters being affected by the economic downturn the majority of small firms do not want to just consolidate their firm, but actually expand.
The poll also found that 42% of small companies are looking to exploit new business opportunities and 17% are developing new products and services to increase their market share.
"There's a great deal of optimism in the face of the recession, with the majority of SMEs remaining committed to growth," said Patrick Elliott, chief executive of Business Link in London
Source: Business Link London.
www.ukba.co.uk
The poll also found that 42% of small companies are looking to exploit new business opportunities and 17% are developing new products and services to increase their market share.
"There's a great deal of optimism in the face of the recession, with the majority of SMEs remaining committed to growth," said Patrick Elliott, chief executive of Business Link in London
Source: Business Link London.
www.ukba.co.uk
Wednesday, 29 April 2009
Despite the recession a fifth of small businesses expect to grow over the next six months
The survey by O2 of 3,000 small firms found that while many companies are planning redundancies or downsizing their premises to cut costs, 20% expect to expand their business and nearly half plan to invest in new IT to become more efficient.
Although nearly 50% of SMEs surveyed said confidence was at a record low, 66% were determined to make it through the downturn and 7% of bosses said their firm was unaffected by the recession.
The report also revealed that financial issues have now replaced red tape and competition as the greatest cause for concern amongst the UK's small business community. Concerns over cash flow were cited as the greatest threat to survival, closely followed by a lack of support from the banking sector.
www.ukba.co.uk
Although nearly 50% of SMEs surveyed said confidence was at a record low, 66% were determined to make it through the downturn and 7% of bosses said their firm was unaffected by the recession.
The report also revealed that financial issues have now replaced red tape and competition as the greatest cause for concern amongst the UK's small business community. Concerns over cash flow were cited as the greatest threat to survival, closely followed by a lack of support from the banking sector.
www.ukba.co.uk
Sunday, 1 February 2009
Profit is sanity
‘Turnover is vanity, profit is sanity’ – so the business saying goes. But what does that mean in practice? In an economic downturn, sales often start to fall and so businesses scramble to replace this lost turnover.
Competition intensifies and prices are cut to win business. But instead of replacing lost turnover to help cover your costs, you have unwittingly taken on unprofitable business that will leave you with a loss.
Is that new business worth it?
• Cost each product or service: do not take on business if it does not make a profit
• Look at ways to reduce costs: this will allow you more scope to reduce prices
• Be wary of big orders: this can lead to overtrading when the business takes on more work than it can handle and runs out of money to finance it
Maintain Profit Margins
The flip side of price is cost – you can maintain profit margins even if you are reducing prices, provided you also reduce the cost of what you are making or providing.
It is vital to keep overheads down but avoid cutting:
• Stock levels to such a low point that you cannot fulfil new orders
• Staff you need to run your business
• Sales and marketing expenditure which you need to attract new business
• Investment in equipment or product development that enables you to remain competitive
• Insurance as you could leave your business inadequately covered
On cutting costs...
• Don’t get emotionally involved. Make hard-headed business decisions. You may want to keep a particular office open because it was where you started or a certain product line because you created it. If it is losing you money, you have to lose it – or risk losing your business.
• Make decisions based on the facts. A “gut feel” is not good enough. It is only when you see what is profitable and what is not that you can make a decision.
• Start with non-essential expenditure – then tackle fixed costs such as utilities, stationery and other outgoings.
• Pass on price cuts. If you are under pressure to cut your prices ask your suppliers to do the same – if you can. If they won’t negotiate on price ask for longer payment periods or shop around.
Are you making the most of management information?
Knowing which products are going to sell best and bring in the most profits and which costs are rising and could hit your margins, is vital. For that, you need to have the right management information.
The key difference between this economic downturn and the recession of the early 1990s is information technology.
The Key Barometers
There are usually four or five barometers that indicate the health of any business. You need these to be annual rolling totals either on a monthly or even a weekly basis. Check the actual figures against those forecasted and against the previous year’s. These key indicators will vary from business to business but could include:
• Turnover – not just the total but some key figures.
• Enquiries – or foot traffic, number of visits to your website or another key indicator of interest in your product or service.
• Stock – if too much of one item is piling up it is a reflection that sales of that particular product are falling. The danger is that too much cashflow will be tied up when you need it for day-to-day needs.
• Costs – keep track of how these are rising. As has been seen in recent months, some costs – such as fuel – can rise rapidly.
• Late payments – you need to keep a daily eye on how quickly money is coming in so you can spot potential problems early on.
Then you need to act on the information. For example, by selling off surplus stock or putting up prices to reflect rising costs.
[Extract from Trading Through The Economic Downturn - published by NatWest - full Guide available by clicking here]
http://www.ukba.co.uk
Competition intensifies and prices are cut to win business. But instead of replacing lost turnover to help cover your costs, you have unwittingly taken on unprofitable business that will leave you with a loss.
Is that new business worth it?
• Cost each product or service: do not take on business if it does not make a profit
• Look at ways to reduce costs: this will allow you more scope to reduce prices
• Be wary of big orders: this can lead to overtrading when the business takes on more work than it can handle and runs out of money to finance it
Maintain Profit Margins
The flip side of price is cost – you can maintain profit margins even if you are reducing prices, provided you also reduce the cost of what you are making or providing.
It is vital to keep overheads down but avoid cutting:
• Stock levels to such a low point that you cannot fulfil new orders
• Staff you need to run your business
• Sales and marketing expenditure which you need to attract new business
• Investment in equipment or product development that enables you to remain competitive
• Insurance as you could leave your business inadequately covered
On cutting costs...
• Don’t get emotionally involved. Make hard-headed business decisions. You may want to keep a particular office open because it was where you started or a certain product line because you created it. If it is losing you money, you have to lose it – or risk losing your business.
• Make decisions based on the facts. A “gut feel” is not good enough. It is only when you see what is profitable and what is not that you can make a decision.
• Start with non-essential expenditure – then tackle fixed costs such as utilities, stationery and other outgoings.
• Pass on price cuts. If you are under pressure to cut your prices ask your suppliers to do the same – if you can. If they won’t negotiate on price ask for longer payment periods or shop around.
Are you making the most of management information?
Knowing which products are going to sell best and bring in the most profits and which costs are rising and could hit your margins, is vital. For that, you need to have the right management information.
The key difference between this economic downturn and the recession of the early 1990s is information technology.
The Key Barometers
There are usually four or five barometers that indicate the health of any business. You need these to be annual rolling totals either on a monthly or even a weekly basis. Check the actual figures against those forecasted and against the previous year’s. These key indicators will vary from business to business but could include:
• Turnover – not just the total but some key figures.
• Enquiries – or foot traffic, number of visits to your website or another key indicator of interest in your product or service.
• Stock – if too much of one item is piling up it is a reflection that sales of that particular product are falling. The danger is that too much cashflow will be tied up when you need it for day-to-day needs.
• Costs – keep track of how these are rising. As has been seen in recent months, some costs – such as fuel – can rise rapidly.
• Late payments – you need to keep a daily eye on how quickly money is coming in so you can spot potential problems early on.
Then you need to act on the information. For example, by selling off surplus stock or putting up prices to reflect rising costs.
[Extract from Trading Through The Economic Downturn - published by NatWest - full Guide available by clicking here]
http://www.ukba.co.uk
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