Top 10 trends all small businesses should be looking out for in the future

Small businesses in the UK are finding it hard than ever to survive the current economic climate. At 08Direct we have done some research and put together our top 10 trends to look out for for the rest of 2012 and into 2013.

A Low Growth Economy

The latest Bank of England forecast suggests that the UK economic growth will be slower than predicted  This looks to be the case both the rest of 2012 and into 2013.

Demanding Customers

When money is in short supply customers will want more, this applies to both consumers on the high street and businesses looking to get as much of possible out of budgets. The thrive in this climate keep your prices competitive and always look to add extra value to your offering.

Banks Not Lending

A much discussed increase in bank lending for SMEs in unlikely to happen soon. The ‘Funding for Lending’ scheme launched in the summer looks to have had little impact.

Rise of Alternative Finance

With banks not lending, small businesses will continue to seek finance from other sources. More SMEs could turn to invoice financing. Others could seek funds through peer-to-peer lending networks.

More Public Sector Misery

Cuts in the public sector are not going to end any time soon. Companies who rely on selling to the public sector will have already experience difficulties. That said, the public sector is changing the way it addresses contracts. Rather than the initial cost, they are now looking at the long term value of a particular product or service.

High Energy Costs

SMEs should be budgeting for high energy costs in the future. Prices of oil, gas and electricity are continuing to rise. All companies should be looking for ways to save money by reducing the energy they are using.

The Young and the Old

The UK population is steadily getting older, and this could create brand new markets for businesses savvy enough to spot them.

New Market Overseas

Many SMEs already targets fast growing markets such as Brazil, India and China, but firms should not limit themselves to just these countries. There are many English speaking countries around the world who could create new business for UK companies, including a large proportion of Africa.

Innovation Speeds Up

A new survey by Warwick Business School shows that more than half of SMEs have done no product innovation in the past three years. Companies needs to be creating and changing the way they operate in order to move forward.

Security Gets Harder

Security risks are not just centred on cyber attacks, although this is hugely important for companies who are looking to exploit online markets. Last year’s riots showed that civil disturbance should be a clear threat to small businesses

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