Successful entrepreneur Jo Fairley has shared her advice for small businesses faced with increased economic uncertainty as the government prepares to trigger Article 50 on Wednesday.
Her advice comes after Xero, the beautiful cloud accounting software company asked small businesses how optimistic they felt about the future of their business in relation to Brexit. Three in four (74%) UK business owners expressed confidence, but despite this optimism, economic instability was named the greatest concern for business owners (34%), followed by cash flow (24%), suggesting that this optimism is mixed with apprehension.
The serial entrepreneur and co-founder of household brand Green and Black’s, which launched during a recession, has stressed the importance of credit, good preparation and a focus on personal health as key elements of survival.
Concentrate on cash flow
The report found that chasing payments for overdue invoices still plagues a fifth of small business owners as their biggest time waster, so putting cash flow and credit in the spotlight was another safeguarding step according to Jo Fairley. “Chasing payments is a huge time-waster for small businesses, and in tough times healthy cash flow is vital in helping you stay afloat. Take steps to ensure you know your numbers, invoice promptly and be sensible about spending to keep your business in the black.”
Fail to prepare, prepare to fail
One in five small businesses (18%) said they believed leaving the EU would be positive, calling out reduced legislation, and red tape as a key benefit. Jo Fairley advised that seeking expert advice and being knowledgeable about upcoming regulation changes was vital to help steady the ship in turbulent times. “Small businesses are forced to adhere to so many policies and regulations, it can be hard to keep up,” says Fairley. “When changes happen, it’s vital to prepare as much as you can by reading up on developments and speaking to advisors. Keeping ahead of the game will make you feel more control and ensure there are no nasty surprises.”
Put your health first
The report found that four out of five (78%) of small business owners believe that physical and emotional wellbeing is directly linked to business performance, prioritising it to aid productivity. Fairley believed that putting health first was a key part of her business’ success. “Regardless of the state of your business, if you don’t look after yourself you will be unable to look after your team,” says Fairley. “Stay healthy and make sure you get enough sleep, and you will be in a much better position to deal with a bumpy road.”
Gary Turner, Xero’s UK co-founder and managing director said: “Our research has revealed a remarkable trait among small businesses to look on the bright side, particularly in the current climate when faced with so much uncertainty. Given the importance of small business health as the government triggers Article 50, it is promising to see that small business owners are feeling so confident about the future. But, as cash flow and healthy finances have never been so vital, owners must keep a sense of realism and listen to external advice and support to ensure that business continues to prosper through the next few years.”
Jo Fairley concluded: “Owning a business is invariably a rollercoaster full of ups and downs and you must learn ways of thinking your way out of difficult situations, so it’s brilliant to see such optimism from small businesses. Having a concrete plan for your business combined with a can-do attitude can help you to win regardless of what you are faced with.
“While optimism is important, consulting with experts and keeping on top of your data can enable you to make the right decisions for your business that will help you not only survive, but thrive.”
(Source: Green & Blacks)
