Key concerns for small business in 2011

At Dare Accountancy we deal with a large number of small businesses - the following are some of the key issues facing business in the next 12 months

• Employment remains tough; there will be an increase with an increase in the proportion of businesses reducing staff pay or hours to manage costs.

• Similarly, the proportion reducing temporary staff numbers will increase, and the number reducing permanent staff will increase too

• Maintaining cash flow tops the list of concerns for 2011

• Sales declining further and the increase in the VAT rate

• The biggest driver for businesses moving into 2011, as they attempt to remain in profit, is the ability to diversify their products and services

It is clear that Christmas is a crucial trading period, even more so with the VAT rise in early January. The Governments proposed “austerity measures” hanging over consumer spending for the year ahead.

We know that small businesses are a resilient community but it looks as though the coming months will test them to the limit. Businesses are worried about the coming months so the keys to success over the next 12 months will be;-

1. Be creative

2. Be entrepreneurial

3. Practice good, solid business skills.

4. Plan and prepare. Revisit your business plans regularly to make sure you know how your business is performing.

5. Make sure you keep your staff informed and look to them for inspiration.

6. Keep yourself informed too and make use of the wealth of specialist advice that is available

If you want to review the position your business is in and ensure you are doing all you can to achieve success in 2011 – then please contact Richard Dare on 0845 2576835