Are You Ambivalent About Austerity?
A recent interview of two of the most influential financially focused think tanks from Scotiabank and the Institute of Fiscal Studies put forward some stark warnings. Put simply, not only is it time to tighten the belts, you may have to sell the belt altogether! It’s a word we have come to ignore; “Austerity”.
We here these buzz words all the time now, and the vast majority of us carry on happily not paying it any attention. For those people out there that may be running a business however, it can be pronounced slightly differently: “I have no money!”. While the UK at large, for the average employed person these cliché words seem powerless.For anyone trying to operate a successful small business these words mean that sales are low and profit margins are tiny, if they even exist. To be ‘austere’ means essentially ‘to go without’ and if people are going without is it your product or service that they are not choosing to take up?
This Is Nothing New, Why Bring It Up Now?
Well, If I might point back to that interview, here’s what those at the top are saying:
“We are still as far away from the (budget deficit) target as we were in 2010,”
-The Institute for Fiscal Studies.
By looking at past examples and examples of other countries with which we can financially associate the indications point to hardships lasting as long as 2020. So If you’re in business now, do you have a plan which see’s your business surviving the next seven years?
Along with the extended period of time in which we could have to endure such hardships there is also the added threat that the UK government has already announced plans to make financial cuts in key areas of the economy, including education. Cuts is one thing but can your business survive a tax rise? such things are also in the list of things to expect.
Make Sure You & Your Business Are Ready
A recent release by the Office for National Statistics pointed to a decrease in unemployment, but with nearly a decade ahead in which we cannot realistically expect things to get better, but instead fear that they may be getting worse, business owners are going to be hard pressed to keep their sheets in the black.
If you are a business owner, now, probably more than ever, it’s time to review where your business stands financially. Take steps to make sure you can face an uncertain future.
If your business isn’t in a stable position or you fear that future financial complications could be the straw that breaks the camels back, the team at Forbes Burton is always ready to discuss your options, we specialise in exit strategies for business owners, so feel free to call our offices for advice 0845 409 4471
