Inflation, skills shortages and cost of living crisis threatening business growth
Increasing energy bills or the overall rising costs of living are the biggest challenges facing almost half (47%) of businesses in the next six months, according to new research by accountancy and business advisory firm, BDO.
The bi-monthly survey of 500 leaders of medium-sized businesses reveals a third will increase the price of their goods and services in response to rising costs. Retail and wholesale businesses have been particularly hard hit, with 39% planning an increase in prices.
Meanwhile, rising costs mean almost a third (30%) of businesses are planning to reduce the number of goods and services they offer, as a result of these products becoming less profitable. 29% are switching to cheaper suppliers to reduce costs.
Warnings from the Office for Budget Responsibility that inflation could reach close to 9% in 2022 are also giving serious cause for concern, with almost two thirds of mid-sized business (59%) having only planned for an inflation rate of 3-5% this year.
As a direct result of rising inflation almost a third (31%) are seeking additional finance, rising to two-fifths (42%) of hospitality and leisure businesses and 36% for retail and wholesale – all industries that have already been hard hit by COVID-19. Even as analysts predict further hikes in interest rates, 29% of businesses are using new or existing overdraft facilities, with a quarter (24%) taking on higher levels of debt to ensure their survival.
Recruitment is another area that threatens to derail growth. More than a quarter of businesses (26%) said finding staff with the right skills is their biggest challenge over the next six months.
24% of businesses are most worried about the cost of hiring and with competition for talent fierce, a fifth (19%) see retaining employees as their biggest challenge this year. Almost a third (30%) are increasing wages in an effort to support staff through the cost-of-living crisis.
Ed Dwan, partner at BDO commented: “This is a deeply concerning time for the UK businesses, with inflation and global uncertainty all threatening to stifle the post-pandemic recovery.
“The large number of businesses taking on new or increased debt piles in a period of mounting inflation is testament to the challenges they face, and the hike in National Insurance this month could prove a tipping point for many in the midst of the cost-of-living crisis.
“These businesses are the engine of the economy and their concerns should not be overlooked. As part of its levelling-up agenda, the Government should consider introducing more targeted policies that encourage investment and drive growth for the UK’s medium-sized businesses.”
Belvoir acquires Kettering estate agency
Belvoir estate agency, which has offices in Corby, Kettering and Coventry, is expanding with the acquisition of Simon Musto Sales and Lettings.
Simon Musto, which has an office in Sheep Street, Kettering, has been established in the town for over four decades and boasts two members of staff, both of which stay in position.
Simon will remain in the business, mainly working from home as a remote agent.
Belvoir Managing Director Bobby Singh Braich said: “We are delighted to announce this acquisition as it gives Belvoir a greater presence in Kettering. Combining our services will benefit our customers, bringing a modern approach to a traditional, well-respected business.
“Simon is a consummate professional and we are so pleased that he will continue to also be a much-valued colleague, as he brings a wealth of experience to our team. I am very excited for our future working together to provide the best possible service to our clients.”
Simon Musto said: “This business has been established for 80 years and I’ve been running it for 40 years. We have a lot of very loyal, longstanding clients.
“The main focus for me was to sell to a company with the integrity to carry on our amazing history. I’ve known of Bobby for a number of years and the Belvoir brand is a trusted and long-standing brand so I know the business is in good hands.
“While I’m very sad to see the business sold, I’m very happy that it has gone to Belvoir. I feel like we’ve gone out on top, as the business is doing better than it has ever done. I’m going out on a high and know I’m handing over a good business to Bobby.”
New homes set for Leicestershire village after site sold
New homes are set to be built in a Leicestershire village after a property consultancy secured planning permission for 70 dwellings and went on to sell the site.
Fisher German secured outline planning permission for the 6.8-acre site off Hinckley Road, in Stoke Golding, in just 12 months, which it has now sold to Miller Homes.
The firm acted on behalf of the landowner to secure development partner Richborough Estates which subsequently instructed Fisher German’s planning team to work on the planning application.
The complex process involved the team arguing that the site should be allocated for housing in the Stoke Golding Neighbourhood Plan, which only included part of the site as a reserved allocation for 25 units, due to housing calculations being outdated and an increased amount being required.
Despite these arguments being dismissed by the Neighbourhood Development Plan Advisory Committee, members of the team prepared pre-application submission and undertook a consultation exercise ahead of submitting an outline planning application in May 2021.
Further representations were then made to the Stoke Golding Neighbourhood Development Plan following the publication of an updated version of the neighbourhood plan which had removed the site altogether as a result of the approval of an alternative site in the village.
The firm also made representations to Hinckley and Bosworth Borough Council which had produced its draft local plan that highlighted the need for more housing in the area, demonstrating that the development could support with this.
After receiving a resolution to grant consent from Hinckley and Bosworth Borough Council’s planning committee in October, a third-party call-in request was made to the Secretary of State who later determined not to intervene in the decision-making process.
During this delay, a S106 agreement was prepared and completed within three months of the committee’s resolution, following collaboration with the borough council and Leicestershire County Council.
The firm has now sold the development site, which will provide a mix of starter and family homes along with more than two acres of public open space, on behalf of Richborough Estates to Miller Homes.
Angela Smedley, of Fisher German, who led the planning process, said: “We were very pleased to secure planning permission for the site, and it is fantastic that it has now been sold to Miller Homes.
“Despite facing a number of barriers, we were able to achieve an incredibly quick turn around and secure planning permission just one year after being instructed by Richborough Estates.
“We now look forward to seeing the development, which will provide much-needed new homes for the area, come to fruition.”
Fisher German’s development team dealt with the sale of the site.
Ben Marshalsay, head of development at Fisher German, said: “We were attempting to transact in the tax year just ended and it was always going to be a close-run thing, but we were very impressed with the speed at which all parties worked to hit the tight deadlines and our client was extremely happy with the result.”
How to safeguard the future of your business
Most people tend to think that starting a business is the hardest part; once the business is launched it is all smooth sailing from there, but that is not necessarily the case. You need to take steps to safeguard the future of your business. Simply keeping a business afloat is hard work, let alone making a profit. To ensure that your business has a future, you need to do your best to be flexible and develop your critical thinking skills, so let’s get into it.
Invest in Yourself
While you obviously cannot do everything yourself, as a business owner, there are a lot of things that you have control over which can help to secure your business’s future. First and foremost, you need to do your best to work on your organisational skills. Realistically, you are the one that is responsible for staying on top of everything. It falls to you as the person in charge to make sure that everything is done. In that respect, how well you are able to organise yourself directly affects the success of your business. There are several methods that you can use to stay organised, like to-do lists or tracking programmes. You also need to stay up to date with industry standards and relevant legislation that could affect your business.
In order to ensure that you are properly prepared to run your business and maintain its success in the long term, you need to be willing to work on yourself. As your business grows, its demands on you might change too. Luckily, the internet is an amazing resource. You can find no end of articles and blog posts to further your knowledge and provide you with insights. That being said, it might be better for your business for you to learn these things first-hand. There is a huge range of courses online which can help to arm you with the knowledge that you need to protect the future of your business. Think about areas in which you might be lacking; for example, if running the finances for your business is new to you, then maybe a managerial finance course might benefit you. If you do decide to do a course, then you need to think about the reputation and accreditations of the provider; for example, LSE is a world-renowned institution whose online certificate courses could prove invaluable to your business.
Above all else, you need to always maintain your focus. It is highly unlikely that your business will be an overnight success, and managing a business is a long-term endeavour. You need to be able to keep an eye on the long-term goals of your business instead of simply thinking of the short term. A work-life balance is important because it can help you avoid burning out. By working on your time management skills, coming up with goals and developing strategies that will help you to reach them, you should be able to strike a balance.
Remember that Your Staff are an Asset – Use Them
Most business owners aim to grow their business, and to do this; you need employees. The truth is that your employees can be one of your greatest assets, and you need to treat them as such. In order to ensure that your employees are prepared for the increasing demands of the business, you need to continually be looking for ways to increase their skill set. However, let’s not get ahead of ourselves. You first need to reevaluate your recruitment process. For example, while hiring university graduates or promoting internally might seem like the best practice, you might be unknowingly limiting the skillset of your employees. Instead, you might want to rethink your screening process. In doing so, you might find that your business benefits from applicants with transferable skills or experience that can be of use.
When you put the work into training your staff and improving their skill set, it communicates to the staff that they are appreciated and valued. This in itself can help to boost morale within your employees. Ensuring that they are kept up to date with industry developments simply makes good business sense, and it can help your strategies and the way in which your staff work. It is all about doing your best to encourage your employees to always produce your best work.
Monitor Your Competition
A little healthy competition can work wonders for your business; it forces you to work harder, to find your niche and strive for success. In all honesty, your competitors can prove to be an incredibly useful tool if utilised properly that can provide you with a number of advantages. If you want to ensure that your business has a chance at long-term success, then you need to use them. When you have a better idea of your competitors, you can do your best to differentiate your business from theirs to make your business more unique and, therefore, more appealing to consumers. Do your research and learn from their mistakes so that you may avoid falling into the same pitfalls. Then, find ways to use their successful strategies to your advantage. This isn’t to say that you should copy them directly but find ways to personalise them for your business.
Cater to Your Consumers
This might sound obvious, but it is worth going over in more detail. As a business, you should always strive to deliver an excellent service to your consumers. Customer service is an integral part of any business. A business can only succeed if it has customers who are willing to pay for the products or services that they offer. Prioritising customer satisfaction is one of the ways to guarantee that your business has a future. You should always pride yourself on the service that you provide to your consumers. Often it is one of the defining factors that you can use to set your business apart from your competitors. To put it simply, consistency is key. It can help you to build a reputation that your customers will want to benefit from. Everything you do needs to be geared towards your consumers, from the products that you sell to your marketing methods. Do you have a good idea of who your target audience is? It is not sustainable to try and appeal to everyone; after all, it is a waste of your time and resources. To streamline your process, you need to have a good idea as to who your business appeals to. Your knowledge of your audience translates directly to the long-term success of your business; you need to put the work in to get to know them so that you can be sure to consistently meet and exceed their expectations.
To Conclude
If you want to ensure the future of your business, then you need to work on adopting a few of the habits and considerations listed above. They will help you to arm yourself with the knowledge that you need to guard your business, retain and encourage your staff, as well as grow your consumer base. In all honesty, a significant number of fledgling businesses won’t survive for more than ten years. Building a business and maintaining it long-term is a challenge; make no mistake but taking on board the above advice can help to alleviate some of the anxiety and allow you to anticipate the changing needs of your business.
Private equity firm acquires Northamptonshire-based Powdertech
Belfast-based private equity firm Cordovan Capital Management Limited has acquired Powdertech (Corby) Limited.
Following investments made last year into Spanwall Group and Cubo, this is the third investment closed by its institutional fund vehicle, Cordovan Capital Partners II LP, and the twelfth investment made by the group overall.
Northamptonshire-based Powdertech is a leader in the field of specialist architectural powder coating, providing unique and innovative coating solutions to a wide range of UK and international clients.
Cordovan partner Daniel Anderson said of the acquisition: “This acquisition has seen us support a highly experienced and industry-recognised management team in their ambitions to lead the next chapter of Powdertech’s growth.
“This is a successful, innovative surface technology business whose work can be seen on many iconic buildings, from Wembley Stadium in London to the Riyadh Metro Station in Saudi Arabia, and we are delighted to welcome it into the Cordovan portfolio.”
Giles Ashmead, operations director at Powdertech, said: “We are delighted to have completed this investment into the company which will catalyse significant further growth in the business. I’d like to pay tribute to the founder and seller of the business Martyn Green whose innovative work in our industry has laid a such a strong foundation on which we will continue to build.”
Payments entrepreneur aims to triple business with help of £850k investment
A fast-growing card payment solutions provider aims to treble the size of its business following an £850,000 investment.
Grimsby-based Card Industry Professionals has raised the equity funding from both the Northern Powerhouse Investment Fund (NPIF) and the Midlands Engine Investment Fund (MEIF), managed by Mercia.
Founded in 2017, by award-winning young entrepreneur Ciaran Savage, Card Industry Professionals provides card terminals, point of sale and online payment solutions to thousands of merchants throughout the UK. It focuses on SMEs including retailers, hair and beauty salons and hospitality businesses, and offers a range of solutions to suit different trading volumes and requirements.
The company has doubled its revenue each year since it launched. The management team has also been bolstered by the addition of Ciaran’s mother, Lyn Savage, as operations director, and sales director John Selby, who, between them, have over 40 years’ experience in the payments industry.
Card Industry Professionals employs a 13-strong team in Grimsby and has a nationwide network of over 130 sales agents. It currently processes over £25m worth of transactions per month and aims to triple that number in the next 18 months. The funding will enable it to strengthen its board, create around 10 new jobs in Grimsby, and continue to expand its product range by incorporating the latest innovations in payments and fintech.
Ciaran Savage, founder and director, says: “This is an exciting moment for Card Industry Professionals as we continue to grow and develop. The investment will enable us to deliver our long-term plan to support and introduce many more merchants to new and emerging payments technology.
“As we shift to more contactless and digital payment methods, we want to make it as easy as possible for merchants to access and adapt to the new payments technologies available, feel supported with the implementation and enable merchants to provide the choice and flexibility to their customers.
“With this investment we can develop upon our portfolio of products, as well as expand our sales team throughout the UK and customer support teams based within our head office.”
Maurice Disasi of Mercia added: “The pandemic has accelerated the uptake of contactless payments and many smaller firms – particularly ‘cash-led’ businesses such as takeaways and hair salons – are having to adapt.
“Card Industry Professionals focuses on this underserved market and is ideally placed to help businesses make the transition to alternative payment methods. The funding will enable the company to stay at the forefront of technology and expand its market share.”
Should we as leaders be reviewing the way we lead in a post-COVID world? By Fiona Duncan-Steer, founder of RSViP Business Networking Agency
Fiona Duncan-Steer, founder of RSViP Business Networking Agency, reconsiders leadership in the wake of the pandemic.
There is no getting away from the fact that the world we live in has changed in the last two years considerably in many aspects – for all of us.
In relation to business, many industry leaders have had to work hard to rebuild, diversify, and even start again in order to simply survive, let alone thrive, and those same leaders have also had to navigate their staff and teams sensitively and productively, whilst adjusting to a new way of working themselves and it has not been an easy task.
As we continue to learn to “live with COVID” in our new hybrid world, remote working has become the norm for many, as well as an introduction of the four-day working week for some (which I have personally introduced recently and find it highly effective). We have also seen an increase in flexitime, as leaders have come to realise that their teams can be trusted to get the job done without being micro-managed and all this is well and good but…
Should we as leaders be considering a change in the way in which we lead?
Taking into consideration the newly created businesses and job roles that didn’t even exist only a few years ago and the rapid change in marketing styles that accompany those roles, I would say the answer is a big fat YES. Look at it this way, the Gen Z (those born between 1995-2012) are our future leaders and so would it not make sense for them to become a pivotal part of our decision-making processes?
As a millennial myself (those born between 1981-1996), and someone who spends a lot of time coaching and training university business students, I find myself continually learning from those who are younger than I am and it is immensely inspiring to hear their perspectives and ideas. We are living in an age where social media can make a teenager their first million, celebrity culture has become more accessible and therefore a little less special, and ‘everyone’ can now become a podcaster, presenter, journalist, interviewer, reviewer – ‘get spotted’ from an ‘upload’ and get paid for simply living their lives through the public eye. The reality world and influencer culture are well and truly upon us, whether we as leaders like it or not, and so we either embrace it, or we get left behind.
Diversity in all forms within businesses should already be in place and companies are getting better at this, but we need to be even better, so ask yourself…
Do you currently have a diverse workforce?
Can more diversity be introduced to include younger minds?
How do you feel this will benefit your business going forward?
Integrating different generations, not forgetting Gen X (those born between 1965-1980) and the Boomers (those born between 1946-1964), will only ever result in a positive outcome; different minds, different ideas, different experiences, and different perspectives, all learning from one another and inspiring and motivating each other to ‘be’ and to ‘do’ better, and whilst we are all doing the best we can, we all still have the potential to do a little better.
Fiona Duncan-Steer, RSViP
www.rsvipnetwork.co.uk www.fionaduncansteer.com
See this column in the April edition of East Midlands Business Link Magazine.
CBI strengthens Midlands leadership team with key appointment
The Midlands CBI has bolstered its regional team with the appointment of a new associate director – who aims to help the region’s businesses navigate a path through the current economic challenges to renewed prosperity.
Nicola Adams has worked across a number of different industries, and has spent the past eight years in trade associations primarily supporting the UK’s DIY, housewares, electrical and footwear sectors.
She brings extensive experience in account management, recruitment, business support and event management.
In her new role, Nicola will work closely with CBI Midlands director Richard Blackmore and member businesses to advance the CBI’s ambitions for economic growth, regional prosperity and social equality, as laid out in its strategic vision Seize The Moment.
Regional priorities will include action to boost skills, increase investment and drive infrastructure improvements.
Nicola Adams, CBI associate regional director for the Midlands, said: “It’s been a turbulent few years for business with COVID-19, Brexit and now a growing cost-of-living crisis as inflation rises and energy costs soar. Long-term challenges around levelling up and transitioning to net zero also loom large.
“I’ll be working closely with businesses across the Midlands to not only help them overcome these challenges but also to make the most of the opportunities in front of them too.
“We’re at a crossroads in the economy, and the decisions we take in now will define our future for years to come. I’m committed to enabling businesses to seize the moment and create an even more thriving Midlands economy.”
Richard Blackmore, CBI Midlands director, said: “I am thrilled Nicola has joined the CBI team; she brings a wealth of experience to the role, and her knowledge of the Midlands’ strengths and challenges means she is well equipped to support our members to achieve their ambitions.
“Businesses across the region have faced a tough time over the past two years, but the CBI’s Midlands team stands ready to help them bounce back from these challenges and plot a new trajectory towards a prosperous, equitable and sustainable future.”
Local marketing consultant, golfer and NSPCC charity fundraiser honoured by Dame Esther Rantzen
A local marketing consultant, golfer and charity fundraiser has been honoured with an award from Dame Esther Rantzen in recognition of raising over £5,000 for the NSPCC and an ongoing commitment to raise £50,000 for NSPCC, and £100,000 overall.
The ‘Esther People Awards’ are held bi-annually to reward NSPCC fundraisers who show innovation and ingenuity in their fundraising, particularly in the face of adversity.
As the 2020 lady captain of the Nottinghamshire Golf & Country Club, Bev organised an event called the ‘Three Bunkers Challenge’. Styled like the infamous three peaks mountain climbs, the event involves 24 golfers playing three golf courses in Derby, Leicester, and Nottingham in one day. The courses are Morley Hayes Golf Club, Charnwood Forest Golf Club and The Nottinghamshire Golf & Country Club.
The event was first planned to be held in 2020, but was delayed due to COVID restrictions. Undeterred, Bev, who is a director of Simple Marketing Consultancy, based in Radcliffe on Trent, re-arranged the event for 2021 and in total raised £13,500 for her chosen charity called ‘Big C Little C’ which splits all money raised from the challenge between NSPCC and Cancer Research. In total, Bev has pledged to continue the event until she has raised £100,000.
Commenting on winning the award, Bev said: “For personal reasons I have been a regular supporter of NSPCC for over 30 years. Since then, I have encouraged all past employers to nominate NSPPC as the beneficiary of charity events. Choosing them as one of my Lady Captain’s charities was a no brainer and I am thankful to all the companies and other golfers who have helped me fundraise.”
Barbara Elsey, NSPCC community fundraising manager, added: “Overall there were over 300 people nominated for an NSPCC award and Dame Esther Rantzen decides the overall winner of the Esther People Award. Bev won the Esther Award because her idea overcame the many restrictions presented by COVID and has also provided NSPCC with a fantastic footprint for a novel idea that we hope other fundraisers will enjoy arranging. It also helps NSPCC to engage more with the business community.”
To make it more interesting, the team captain has to record how many bunkers the players in their team go in and then subtract this figure from their overall points score. This rule underpins the reason for calling the event ‘The three bunkers challenge’.
The five other companies that are helping Bev reach her £100,000 overall target include: business advisory firm Mazars (Bob Johnson), Anthony James Insurance Brokers (Steve Boorman), Breeze Corporate Finance (Paul Bevan), MKM Building Supplies (Kate Tinsley), Fiscal Engineers (Colin Shaw and Gini Bolton), Breedon Electrical Services (Andrew Springhall), and business partner Elliot Cook.
If you would like to donate visit this link. All money raised will be split 50% between NSPCC and Cancer Research.
Rhodes Wealth Management merges with Ilkeston counterpart
Rhodes Wealth Management has significantly increased its client base after a merger with another financial advice firm based in Ilkeston.
The company has joined forces with Paul Bainbridge Wealth Management which will allow it to bring complementary services under the Rhodes umbrella.
Adam Rhodes began his firm as a one-man operation in 2007 and it now has a staff of 27 with headquarters in Brailsford, Derbyshire and an office at West Bridgford, near Nottingham.
The link-up with experienced Paul Brainbridge, a fellow St. James’s Place partner, has been agreed as Paul moves towards retirement in coming years.
Paul said: “During 2021 I have been in discussions with various St. James’s Place Partnerships with the idea of merging my business into theirs. The objective has been to improve client servicing by having larger resources to call upon.
“This will also provide my clients with a second contact point as I begin to have an eye on my retirement.
“I am delighted to confirm after many meetings and discussions I have found a St. James’s Place Partnership that I am confident is aligned with my principles and beliefs and has the ability to continue to provide successful client outcomes.
“I have known Adam Rhodes for many years and he has a wealth of knowledge and experience. He and Tristan Gilbody run a successful St. James’s Place Partnership, supported by a fantastic team of financial advisers and well-trained support staff.”
Adam said: “I have known Paul since I started at St. James’s Place and I was delighted when he decided to entrust me and the team at RWM with the task of supporting him and his clients.
“Our business mission is to ‘change people’s lives for the better’. That includes our clients, our team members, our business and charitable partners and, of course, those moving over from Paul Bainbridge Wealth Management.
“Whilst nothing will change for Paul’s clients in the short-term, over time he will begin to hand over the day-to-day management of their finances to advisers from Rhodes Wealth Management. Paul will continue to be on hand to answer any questions or queries they may have.”
