How UK firms can benefit from the current wave of business optimism

New research in 2013 points to cautious optimism for UK small and medium sized firms.  Business owners and managers can take steps now that will help them benefit from rising confidence and minimise the impact of any relapse.


The latest edition of the Lloyds TSB Commercial research of UK SMEs offers some encouragement for small business owners.  The 41st edition of Business in Britain highlights the areas that suffered during the last six months of 2012 but also points to across the board cautious optimism for the first half of 2013.

Mixed fortunes during the latter half of 2012
It seems that manufacturers in the West Midlands, South West and Wales with turnovers greater than £5m per annum suffered the most in the final half of 2012.  Smaller companies elsewhere in the country were experiencing something of a recovery, albeit a mild one as the diagram below shows:

Cautious optimism for the first half of 2013
The research suggests that all sectors, business sizes and regions expect, on balance, to see more favourable trading conditions in the first six months of 2013.  Firms have slightly more positive expectations for orders, sales, profits, staff hiring and capital spending.  

In terms of challenges, the biggest concern is weak domestic demand. Additionally, firms have stated that regulation is becoming an increasing burden.  Any knock to consumer sentiment could shatter the cautious levels of optimism seen in this research.  

On the export front, it seems firms are satisfied with the EU’s promise to do whatever it takes to keep the Eurozone stable.  However, any change to the EU’s ability to honour this commitment could see a return to volatility which, given that the region faces fresh bail-out concerns and looming elections in 2013, is a bit of a worry.

In the meantime, SMEs will be looking for the UK government to push forward with infrastructure projects and see progress from schemes like Funding for Lending.

How to make the most of this optimism
As a small business owner or business manager, you will want to make the most of these early signs of optimism.  You could start by targeting those industries expected to benefit from government initiatives or companies that seem unaffected by current economic conditions such as these growth businesses.

You will also want to ensure your sales and marketing activities are cost effective too.  Relying on traditional advertising and trade shows for lead generation can be an expensive and unproductive option.  Blogging, social media and content marketing all appear to be more cost effective lead generation techniques without any compromise in lead quality.

Now is the time to review your marketing plans. Ensure your activities will make the most of the growing sense of business optimism.  Check that your staff are addressing these new marketing techniques effectively and can track performance.  Alternatively, if your human resources are already stretched, consider using outsourced professionals.

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Freelance copywriting and outsourced marketing for SMEs