When a business approaches the final quarter of the annual year, there’s often a certain level of pressure to finish on a high and ignite growth to hit the ground running in January. However, it’s at this time of year that businesses are also often faced with a wide set of external challenges. When unaccounted for, these challenges can quickly become obstacles that hinder growth.
This year poses a particularly unique set of obstacles for those gearing up to tackle the final quarter. The Summer General Election is a tough act to follow and its repercussions are only now starting to come to fruition, both for the good and the worse. Understanding these obstacles, and adopting proactive strategies to overcome them, is key to ensuring that business growth continues at the desired rate.
Economic Uncertainty
Economic uncertainty is something that the UK has been dealing with for a long time but is arguably the one obstacle that summarises why business growth is so challenging at the moment. Globally, the economy has been volatile since the COVID-19 pandemic and we have seen the repercussions of this on a national level with high inflation, interest rate changes and possible recession. As a result, customers are cutting back on their spending and other businesses can be more apprehensive when entering into new relationships, ultimately making it harder to win new work and make confident long-term predictions or forecasts.
Looming Government Budget
The ongoing economic uncertainty has undoubtedly been amplified by the upcoming government budget. Set for October 2024, the looming budget will be the first of the new Labour government and is set to have significant repercussions. The Prime Minister has already warned that the budget will be ‘painful’, with predicted tax rises and cuts to tax reliefs to combat £22bn of underfunded public spending from the previous government. Not only might these changes affect growth in the long-term, with businesses likely to experience a financial squeeze following the budget, but the wait for the budget to be announced also adds a degree of caution to more short-term decision-making.
Talent Shortages
Another natural consequence of the general feeling of uncertainty across the country is that many individuals are apprehensive about moving jobs or making key life decisions. This has resulted in a talent shortage across many industries which can significantly hamper business growth. After all, if your business is trying to develop its offering or increase its output, it needs skilled staff. If these individuals cannot be recruited then your ability to achieve growth targets is either stalled or more heavily reliant on changes you can make internally, such as upskilling or implementing measures to improve productivity.
Flexible Working Requirements
One way that businesses can attempt to address the ongoing talent shortage and attract the right staff is by embracing flexible working. Since the pandemic, there has been a growing shift towards flexible or hybrid working practices and more and more workers will increasingly only consider roles which accommodate flexible working and include a degree of working from home. In fact, the new government is also considering firming up legislation surrounding flexible working practices and increasing the ease at which workers can request a 4-day working week. Should new rules come into place, businesses will have to consider how they can practically deliver the required flexibility to their workforce which may force growth to take a backseat.
How To Overcome These Obstacles
There’s no escaping from the fact that businesses are facing a range of obstacles at the moment and getting through these to see out 2024 will be key. However, if you are concerned about how your business may (or may not) be able to grow in the coming months there are a number of tactics you can deploy. Stay calm, analyse the facts rather than assumptions, and don’t be afraid to seek professional advice if you are struggling to overcome the hurdles relevant to your business.
Our team of business rescue experts are on hand to help you stabilise your business and place it in the right direction for success, both now and in the future. We can work with you to assess your current position and goals, aligning a business rescue strategy suitable for you. Get in touch with us today to find out more about how we can help you navigate the key obstacles to business growth.
