Much of the coronavirus pandemic has been wildly unpredictable, especially for the economy. And with recovery projections clouded by uncertainty over infection rates, waves and restrictions, 2020 largely consisted of guesswork.
As 2021 went along, the path to ‘normality’ became clearer. In regard to the great comeback, however, one thing was always for certain: a high rate of economic growth. But while this presents a great opportunity for businesses to bounce back from COVID-19, a considered approach is needed to prevent the opposite effect.
Here, we look at how to build up your business during economic growth and what you can do to ensure your finances are in a position to get the most out of the rise.
With restrictions lifting, business will naturally pick up – especially for the hospitality and events industry. And in May, it became clear that we were in store for landmark rises. With household spend tipped to see its biggest surge since Margaret Thatcher’s era, the UK prepares for its largest economic growth since WWII.
Due to the roadmap out of lockdown going ahead as planned and a mass vaccination roll-out, February’s 2021 prediction of a 5% UK GDP rise was accelerated three months later to 7.25%. But what does this rapid recovery mean for you?
It’s a great chance to build up your business, but the huge shift in numbers and growth rates mean you need to be ready to adapt your approach. Maximising the positives should also be met with a closer eye on the complexities and potential complications that come alongside them.
Capitalising on the shift
A rise in consumer spending inevitably leads to more money coming in, which is great news for the evolution of your business – particularly as interest rates will be held at a record low of 0.01%. But going from nought to sixty in such a short space of time could be catastrophic without the right budgeting, forecasting and management.
Areas to account for when planning the year ahead include:
- More staff coming on board
- End of furlough in September
- Potential inflation jump, which could lead to rising interest rates
- Unpredictability of the virus
Remember, what goes up must come down – so you also need to prepare for this rapid growth to level off. After all, a return to pre-pandemic rates is the endgame here, so it’s vital not to get too carried away.
With the eagerness to grow, combined with changeable economic circumstances, things can easily get on top of you. That’s why you need a professional with a positive outlook, forward-thinking mentality and technical know-how, to help you build your business sustainably during economic growth.
Seek the support of an expert
At Nabarro Poole, we use our expertise in budgeting, forecasting and management accounts to implement a future-proof approach that helps businesses achieve growth through varying circumstances. And while the above advice may apply to many, we appreciate the unique requirements of your business – so we’ll always go the extra mile to ensure they’re met.
Our personable manner and transparent view of your finances means we’ll get to the bottom of your needs, ensuring you reach the very top of your potential. And our services don’t end there…
To find out more about what Nabarro Poole can do for your business, including all things tax-related and more, give us a call on 0161 998 4276 or email firstname.lastname@example.org. We’d be more than happy to see how we can deliver growth for you through 2021 and beyond.