Billion pound challenge

Whatever happens to the economy there is certainly nothing I can do about it, all I can do is look after what I can control - my business!

What is important is that we don’t panic and focus on the things we can control.

Yes house prices have dropped, this is uncomfortable but not a disaster, they will go up again, whether it takes 1 year or 10 years, ultimately they will go up. Having a roof over your head is much more important than the value of the roof!

The biggest problem to companies is a lack of credit. My translation company is certainly effected - especially as we provide a lot of translation work to the Financial and Banking industries. Clients are taking longer to pay and consequently we are taking longer to pay our suppliers. This is not something I am not happy about, but again it is not a disaster, given time market conditions will improve and everything will right itself.

Just say a deep recession happens, say a 5% downturn.

Very uncomfortable yes, a disaster, no. A disaster is an earthquake, terrorist attack or hurricane, not a financial downturn!

If we all had to earn 5% less next year, and all had to pay 5% more tax on what we do earn for an emergency 12 months to kick start the economy, would that be a disaster?

Knowing the media the following year they would tell us how fantastic we were doing if the following year we then had 2% growth.

I do however fear that politicians from all parties will not put in policies that will be in the economies best long term interests because it would cost them votes. But that’s for another blog!

I am no financial expert, just a humble business owner with 20 years experience. I do have my own Recession busting advice:

1. Don’t Panic, and don’t in this case count to 10 then panic!
2. Cut out unnecessary cost and waste.
3. Continue to invest prudently in Research and Development.
4. Communicate with your suppliers and be honest with them.
5. Know your break even figures.
6. Communicate with your bank.
7. Be innovative and make your business more efficient.
8. Work 10% harder.

Let me know yours and I’ll pass them on!