The CBI has increased its forecast growth for the UK economy to 1.2% for 2013 and for 2014 the growth forecast has increased from 2% to 2.3%. The Eurozone has also emerged from recession and the new Governor of the Bank of England has signalled that interest rates will still at their historical low levels until the unemployment rate falls to 7%. The good news for business has now been coming from various sources for the last month.
How should business owners be reacting to all this good news? How will it affect their business?
The period when an economy is very challenging for many businesses and the business should access how prepared it is to take advantage of the up-turn in business.
How are the financial resources of the Company? Increased business can mean a strain on cashflow.
Is there spare capacity within the business and do staff have the correct knowledge and skills?
Is the IT in the business ‘fit-for-purpose’?
Does the Management have the correct mind-set to go out and get the business? This is quite different from getting through a recession.
The business should review where it is now and where it would like to be and what is possible. Sometimes it is best to think what, a few months ago, you may have believed was impossible.
All the above would be part of a ‘Business Model Review’ and this is the ideal time to undertake it.