Small businesses have been feeling the pinch in recent years, with the difficulties facing businesses manifold in nature. The restrictions brought on by the coronavirus pandemic in 2020 and 2021 have had far-reaching consequences, with growth stagnating near-universally for two years before society began to return to a new normal.
Though there has been a 21% improvement on businesses in distress since Q1 of 2021, many businesses were still placed on the back foot in spite of government subsidy and furlough schemes – losing money through the continued outlay of overheads and administrative costs.
In general, small and new businesses can struggle with growth for a number of reasons. New managers and business leaders can be green to their role, requiring more time and expertise to generate efficient results. A lack of initial support can mean businesses, even with a robust plan, find themselves limping through the first phases of growth without adequate financial injection. In times of difficulty for businesses across sectors, what can be done to weather periods of stagnation?
Ensure Your Business
With stagnation in growth comes volatility. If cash flow is at a relative low, an unexpected accident, event or bill could be the final straw that pushes you into decline. Insurance is a key instrument in mitigating the deleterious effects of such volatility. As a case study, consider an SME or self-employed contractor in a trade such as construction or decoration. Tradesman insurance can protect that business or contractor against the existential threat that comes with loss or damage to tools, or a worksite accident.
Support Your Staff
Your workforce is the engine by which your business is able to run – supporting them through a tough period for growth can have multiple benefits for the short- and long-term success of your business. By providing both business and pastoral support to your staff, you can keep morale high and engender a sense of security in the job.
A happier, well-accommodated staff cohort is much more likely to offer their creativity to your business – another attribute of crucial importance to your business’ growth. By nurturing staff creativity, you can facilitate the generation of new ideas, which could help you navigate your existing growth issues and find new avenues for competition in your industry.
Often, growth is hindered by an inability to invest properly in the development of an area. The temptation can be to wait until you have the regular cash flow to justify the expansion of a department or the creation of a new one. Rather than subscribing to the immense outlay of resources required to build and staff a department, consider outsourcing your needs to an independent third party that will professionally mitigate any outsourcing risks. You may be paying a premium for a service, but you’ll also be receiving high-quality assistance – and buying yourself space to grow organically.