Many small business owners are still planning goals that will just help them make it through this year. Lloyd TSB have published a survey which shows that owing to the worry of falling demand in 2011, confidence levels among businesses is falling. Companies are implementing plans to freeze investment and recruitment. They also may have to raise prices to sustain a feasible margin against the growing cost.
However, according to the survey, the mood for 2011 among companies is that of “cautious optimism”. This is according to targeted questions to six companies questioned in the survey. None of them believed they will see any substantial economic growth; nevertheless, they all believed that with proper planning, they will be able to end the year stronger than they are in the beginning of it.
The primary challenge is to breakdown the plans to few easily understood set of goals; According to Venture capital investor global entrepreneurs’ organisation TiE UK and a former board member of Intel, and who has been involved in annual planning in businesses of all sizes.
Taking into account a typical 8pc margin, to achieve savings of £50,000, companies will have to increase their sales by almost £620,000, according to an Expense Reduction Analyst (ERA).