The past year has shown signs of recovery , with many businesses either improving or returning to ‘ normal ’.
FINANCE
Advice – Baines Jewitt director Don Adams says a third of businesses maintain a positive outlook towards the future .
The past year has shown signs of recovery , with many businesses either improving or returning to ‘ normal ’.
A significant 42 per cent of businesses reported their performance as being ‘ on par ’ with the usual , indicating a sense of stability amid challenging times .
When asked to describe their outlook for the upcoming year in one word , responses varied , with ‘ positive ’, ‘ challenging ’, ‘ optimistic ’ and ‘ hopeful ’ being the most common .
The most frequently used term was ‘ positive ’, suggesting cautious optimism among businesses .
BIGGEST CONCERNS Businesses were also asked to name their biggest concern for the forthcoming year .
The consensus pointed towards economic conditions , political uncertainty and staffing issues .
These concerns highlight the broader challenges faced by businesses in today ’ s unpredictable and potentially difficult economic and political landscape .
However , this optimism is tempered with prudence , indicated by terms like ‘ cautious ’, ‘ careful ’, ‘ wary ’ and ‘ cautiously optimistic ’.
The term ‘ uncertain ’ and its synonyms further underscore this sense of caution .
Businesses also anticipate difficulties in the upcoming year , suggested by the commonly used term ‘ challenging ’ and other words such as ‘ testing ’, ‘ difficult ’, ‘ turbulent ’, ‘ tough ’, ‘ risky ’ and ‘ volatile ’.
When asked to name their biggest concerns for the next 12 months , most businesses pointed to economic and political factors .
The issues of cost , inflation , interest rates , recession and the election were frequently mentioned , suggesting that businesses are grappling with financial pressures due to rising operational costs , increasing inflation and higher interest rates . environment . To overcome these obstacles , businesses need to demonstrate careful planning .
“ The past year has shown signs of recovery , with many businesses either improving or returning to ‘ normal ’.
“ As we approach the forthcoming election and anticipate a return to more stable trading conditions after a few turbulent years , it ’ s crucial for businesses to ensure they are well-prepared . Now is the time for businesses to ensure they have their house in order .
“ Businesses need to focus on getting the basics right . This includes making sure they are up to date with their tax and other financial affairs , have control of their cashflow and finances and take time to review their supplier and customer contracts .
“ In conclusion , the survey paints a picture of a business landscape filled with both optimism and caution .
“ It is evident that while businesses are hopeful about the future , they are also bracing themselves for potential economic challenges .
“ As such , adaptability and resilience will be key for businesses navigating the year ahead .”
STAFFING AND RECRUITMENT Staffing and recruitment were other significant concerns . This could point to difficulties in hiring suitable staff , maintaining staff morale in challenging times , or dealing with changes in work arrangements such as remote working . Other notable responses included ‘ demand ’, ‘ sales ’, ‘ revenue ’ and ‘ growth ’,
which suggest worries about business performance amid the challenging economic climate .
‘ Uncertainty ’ was another recurring word , reflecting the overall sense of unpredictability in the current business environment .
“ These responses suggest that businesses are grappling with financial pressures , likely due to rising operational costs , increasing inflation and higher interest rates ,” added Don .
“’ Government ’ and ‘ election ’ were also common responses , indicating unease about political stability and policy direction . “ Given the uncertain political climate , it ’ s understandable that businesses would be concerned about potential regulatory changes , tax policies or other government decisions that could impact their operations .
“ However , overall business confidence appears to be heading in the right direction .
“ Our survey results are also reflected in the British Chamber of Commerce ’ s latest economic analysis , which showed a rise in business confidence in the final quarter of 2023 , with the percentage of firms expecting to see their turnover improve over the next 12 months increasing to 56 per cent , from 53 per cent in Q3 .”
PLANNING AND RESILIENCE Don said : “ The findings underscore the complexities of operating in an uncertain and challenging economic and political
Baines Jewitt Chartered Accountants is committed to helping businesses plan and navigate these challenges . If you ’ d like to discuss how to prepare your business for the future , please get in touch . Call 01642 632032 or email : info @ bainesjewitt . co . uk
The voice of business in the Tees region | 51