Posted on 31.10.2013, by Rob Warlow

The latest Ernest Young ITEM Club review of the UK economy has given a heads up to businesses to start planning for growth.

The review says that consumer confidence has regained strength, which has been helped by falling unemployment, an easing in inflation and a recovery in the housing market.
Posted on 31.10.2013, by Rob Warlow

The conclusion is that this renewed confidence will result in a gradual improvement in consumer spending with growth accelerating from 1.2% in 2012 to 1.6% this year, before rising further to 1.9% in 2014 and 2.2% 2015.

All of this is good news for businesses which have been battered over the last few years. However the report goes on to say that the improved trading environment is not yet feeding through into renewed capital investment; firms are still behind held back by a focus on preserving cash.

Is this you? Are you too concerned about preparing for growth? Are you too conservative?

Planning any future investment and the cost it can entail involves a careful assessment of the up front cost and the expected returns. Get this right and the case for making the leap into re-investing back into your business should be clear.

As the country finds its feet again you need to be thinking today about your growth plans and what resources you will need. Growth does not come free and with no investment from you. Growth has to be resourced and financed in terms of additional working capital (for stock and a debtor list to fund), equipment, and staffing etc. All of these are required to take advantage of the upturn.

So ask yourself this question…

“What would I need in order to fund a 30% increase in sales?”

Start researching and planning now before your competitors beat you to it!