Growing your business through economic uncertainty

Earlier this year, we published a report that looked at how focusing on resilience can help small businesses thrive – with resilient businesses much more likely to grow this year. Now, with the macro environment still creating headwinds, we wanted to revisit some of the key findings and practical tips on how you can grow your business through economic uncertainty.  

Resilience in Small Business – Report Summary

Focusing on resilience represents a huge opportunity

Everyone would agree that resilience is a positive characteristic for a business to have. However, what we’ve seen in this report, is that what constitutes resilience is more complex than many would expect, and that all businesses have areas where they can improve. With the clear links of resilience to recent success and confidence for the future, there is a significant opportunity to help your business thrive by making it part of your core strategic planning and exploring some of the tangible steps outlined.

Strong resilience is about more than finances

Having the financial flexibility to adapt to changing circumstances is a key factor in resilience, but focusing on that alone would limit your potential. Operational resilience is also strongly linked with success and is arguably easier to influence as it does not require access to additional capital.

Explore contingency and risk planning or expand what you do already. Seek as much customer feedback as possible and embrace trial and error in a sustainable way. In short, dedicate time to evaluate your operations and take proactive steps to make them more adaptable and robust.

Invest in your people

Looking after the wellbeing of you and your staff is also vitally important in building resilience. Making it a top priority is strongly linked with success, as is putting in specific initiatives to make it happen.

So, to improve your resilience, invest time and resources to enhance your staff’s wellbeing, whether it’s through mental health first aiders, providing relevant tips for your industry or minimum annual leave. Look after yourself too, particularly by taking holiday and giving yourself down time at some point in the day.

When issues arise, you and your employees are going to be central to any response you have, so making sure you are all as healthy and supported as possible should be a top priority.

Key stats

High resilience leads to growth – Resilient businesses were 3 times more likely to have grown in 2022 and are 6 times more likely to expect growth this year.

Resilience is about more than finances – We found that operational resilience is just as important as financial and that prioritising staff well-being is strongly linked with success.

Taking time out is vital for health and success – Among the habits of business leaders, taking time out and having screen free time showed the biggest difference between those with good and bad mental health. Taking at least a week of holiday also makes you 3 times more likely to have good mental health.

Business owners have a resilient mindset – 74% of small business owners would recommend running a business, and, whatever happens in the world, 75% say they are determined to always find a way to survive as a business.

A checklist of takeaways

Here, we have quickly summarised ten things that you can do as a business, to further develop in becoming resilient and supporting a strong culture of wellbeing.

For more information on how to build resilience along with tips and guides, please visit fundingcircle.com/resilience.

• Consider all aspects of resilience – financial, operational, and personal
• Create or expand your contingency plans
• Scour your business for ‘single points of failure’ where you currently have no alternatives
• Identify ways in which you could embrace survivable trial and error, and test new ways of doing business
• Seek out new sales channels – whether online or offline
• Build a stream of regular customer feedback
• Create mechanisms for staff to make suggestions and give ideas
• Ensure there’s downtime in your personal routine
• Book a holiday
• Add a new staff wellbeing initiative – i.e. do you have mental health first aiders in place?
  

13/10/23: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.