Every few years, UK business leaders find themselves dealing with another round of political uncertainty: a new Prime Minister, new ministers and new priorities.
In the last decade alone, we’ve seen multiple Prime Ministers come and go, each bringing a different approach to economic policy, taxation, investment and business support. And now we’re back in that space of waiting to see what will happen next, and what that means for our business.
The reality is that business owners don’t have the luxury of waiting for politicians to make up their minds. You have staff to pay, customers to serve and suppliers to manage. And that’s before you even get to thinking about your growth plans.
The next few months are going to be filled with speculation and emerging policies that will have a direct impact on your business.
As we move into the second half of the year, many businesses are also facing seasonal fluctuations, holiday periods, reduced productivity and continued pressure from costs, inflation and cautious customer spending.
So what should business leaders be doing over the next three months?
Here are the conversations we’re having with clients right now.
- Protect Cash Before You Need It
Look ahead to the challenges and opportunities you’re likely to face. Ask yourself:
- What does cash flow look like over the next six months?
- What happens if a major customer delays payment?
- What happens if sales dip during the summer?
- What funding options are available today, before we are under pressure to make quick decisions?
The businesses that navigate uncertainty best are usually the ones that secure funding options before they become urgent, so take steps now to make sure you’re prepared.
- Stress Test Your Business
Many business plans are built around best case assumptions, but it’s worth looking at other scenarios.
What will happen to your business if:
- Sales fall by 15%?
- Energy costs rise again?
- Employer costs increase?
- Key customers delay projects?
- Interest rates remain higher than expected?
We want to be optimistic but we also need to be realistic, so talk about this with your leadership colleagues or advisor and consider how you can balance your vulnerabilities.
- Review Your Customer Segments
Political and economic uncertainty can impact different sectors in different ways.
Some customers will slow investment, some will delay decisions and some will cancel projects entirely.
Do you know where your revenue comes from? If a large percentage of your income comes from a small number of clients, how does economic uncertainty increase your risk. Think about how you can diversify your customer base, and give your business some protection.
- Don’t Delay Decisions
It’s easy to become paralysed by uncertainty. Putting investment, recruitment and operational decisions on hold may seem prudent, but what are you waiting for? You’re unlikely to get the clarity you need anytime soon, and your customers won’t wait – and your competitors are almost certainly getting on with their plans.
Remember the reasons behind those growth plans: check that they’re still factually valid, seek guidance if you need reassurance, but the costs of delaying could be considerable.
- Watch Policy, Not Politics
Whenever a Prime Minister changes, media attention focuses heavily on personalities. What actually changes things are policies. See through the headlines and instead think about the policy trends that are emerging.
- Will business taxation change?
- Will employment legislation change?
- Will lending markets tighten or loosen?
- Will infrastructure and growth programmes continue?
- Will there be changes to business support schemes?
Political change takes time, even when the personalities behind it are very driven. Economic impact also takes time, so focus on facts and keep assessing your business risk, so that you’re prepared for what’s coming.
- Find an Advisor you Trust
While you – quite rightly – are focused on your business, professional advisors are looking at the bigger picture and what this means for every client. When you have a strong relationship with someone you trust, you add their professional insights about political and economic disruption to your own views.
Our clients can make quicker and more effective decisions because they benefit from the knowledge and insights we gain from our extensive network. It’s indispensable advice that helps them focus on their financial health as circumstances change.
- Focus on What You Can Control
We’ve saved the best piece of advice till last.
You cannot control:
- Government policy
- Interest rates
- Inflation
- Financial markets
- Global conflicts and uncertainty.
You can control:
- Cash flow
- Productivity
- Customer relationships
- Pricing strategy
- Cost management
- Funding readiness
- Business planning.
When you’re worrying about the future, put the things you can’t influence to one side and focus on what you can control.
Our Final Thoughts
We’ve worked through multiple governments, financial crises, Brexit, Covid and countless periods of uncertainty.
The businesses that survive and grow are rarely the ones with perfect conditions. They’re the ones that prepare early, act decisively and stay adaptable.
Whatever happens politically over the coming months, the fundamentals remain the same.
- Know your numbers.
- Protect your cash.
- Keep talking to customers.
- Maintain access to funding.
- And make decisions based on evidence rather than speculation.
Preparation is still one of the biggest competitive advantages any business can have.
If you’d like a confidential conversation about the funding needs of your business, send us a message. We’ll arrange a time to talk and explore the best options for your specific needs.
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