When you have confidence but the market doesn’t your accountant can help change your business model
The Q1 Business Confidence Monitor from the ICAEW shows confidence recovering, but still weak, as companies remain concerned.
According to the survey amongst 1000 accountants, covering a range of UK sectors, regions and company sizes, ensuring a representative picture of the UK economy, confidence has improved in the first quarter and is now back in positive territory, albeit at a low level.
Digging a little deeper, domestic sales growth has eased, with further weakening predicted. Exports are rising more slowly than domestic sales, at a rate similar to pre-pandemic. Costs and selling prices have continued to climb, but their rates of increase are both predicted to be moderate. In contrast, wage growth is not expected to slow.
So there remains big challenges for businesses, not least customer demand.
With that challenging economic outlook, despite some improvements, right now a proactive business strategy might well be to innovate your business model to help you stay competitive, adapt to changing market conditions and better meet the needs of your customers.
Yet before you can alter your business model, you need to understand how it currently operates. Identify the key elements such as your value proposition, customer segments, revenue streams and distribution channels. All areas your accountant should be well placed to advise you on. Additionally, it would be wise to explore the trends and emerging technologies that could impact or if adopted improve your business.
Once you have identified areas for improvement, then you can look for ways to streamline your operations, increase revenue and/or introduce new revenue streams to help you grow your business.
To truly innovate your business model, you need to be willing to experiment. Yet taking risks is not the GSM way. While we encourage clients to try new things and pivot if something isn't working, we believe that innovation is a continuous process, and it requires a continual willingness to accept the trading environment, adapt and then advance.
In this way, with GSM by your side, you can have confidence in your business model and stay ahead of the competition. Contact us today to hear more on 020 7935 3793.