This year, we’re likely to see a growth in the division between business winners and losers in the small business sector. In order to make sure your business is set firmly in the winners’ category, it’s important to take advantage of growth opportunities to avoid being stuck fighting it out in difficult markets.
Important areas to take into account are exports and online sales. Small businesses that are able to differentiate themselves, their products and their services through these routes look set to more positive growth than those dependent on the high street and cautious UK customers. This sets the stage for a two speed economic recovery.
There are opportunities for growth, but many businesses are not taking advantage of them. For ones beset with cash flow problems and lack of funding, consolidation might be more the agenda rather than growth. However, there are ways to get past these problems, as the increasing popularity of asset based finance and invoice financing have shown.
Though there are government schemes and bank initiatives, many small business owners are looking to alternative finance options so that they have the available cash flow to look for ways of transforming their company into a winning business.
Businesses cannot simply decide to wait out economic recovery, and the ones that will emerge strongest will be the ones that take positive steps to tackle the effects of the downturn. Those that create innovative products , new distribution channels and develop customer relationships will be the ones with the competitive advantage. Those who fail to respond to this ‘new normal’ will be the ones that struggle.
Your business can have the opportunity to develop into one of the winners through using invoice discounting and factoring. These flexible, secure and straightforward funding options can improve cash flow and give you room to manoeuvre.