Recession 2023: It Will Be Tough, But Transformational

It's already happening. 2023 is shaping up to be a very challenging year for businesses across the UK. We narrowly escaped recession in the last quarter, but it could still happen. A so can opportunities for growth ...

Many sectors are seemingly quite buoyant. These include education, insurance, tourism and electric vehicle sales. Inflation is dropping, but prices are still going up, so the economy is in turmoil and it could potentially get worse this year.

"So, what can a business do?"

Many will be tempted to batten down the hatches and downsize their workforce to cut costs, but if you think about it, going for growth is the better option. In a shrinking economy, with fewer competitors, there will be gaps in the market.

Yes, review your costs by all means, but also look at ways to make processes and workflows more efficient by including automation. Map your supply chain and see if there are any efficiencies you can find there. And certainly, keep your customer relationships going. When was the last time you reached out to them individually to see how they are doing? New opportunities may be forthcoming from those conversations.

And target any new opportunities which will drive growth when you apply more aggressive marketing strategies. Being proactive and prepared can help you get ahead of your competition:

- Keep up to date with your industry sector news and look for new trends
- Get involved with professional associations and discover what others are doing
- Look at what successful companies are doing and take a leaf out of their playbook
- Find niches that are growing and see if your products or services are suitable
- Are there any government grants or tax breaks you could use?

If a recession hits at some point in 2023, and it's likely that it will, there will be a wave of insolvencies. Many businesses would be in extreme difficulty if one of their clients went to the wall with outstanding payments.

"You need to be capable of managing failure in either a supplier or a customer!"

Forward-thinking businesses will use 2023 to both streamline their entire operation and look for new opportunities. The Business Godparent can work with you to create a recession-proof business strategy that will help you to bounce back strongly when the economy recovers.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.