The recession is here, but is it all doom and gloom?

By : Forum Moderator
Published 28th August 2020 |
Read latest comment - 15th October 2020

It was finally announced that the UK is officially in a recession now. This came as no surprise at all as the pandemic and resulting lockdown had a huge effect on many industries and we all expected the announcement. But house prices are still high, and some industries are thriving, so it isn’t all doom and gloom, certainly not yet.

Who are the winners?

IT was one of the winners of the lockdown as so many people needed software and hardware in order to work from home and now restaurant and bars are open, they need apps to take orders from the table. Sales of laptops and office chairs went crazy and other items like clippers went out of stock everywhere when people deicide to do home haircuts. It was a strange time. But some of these needs will be continuing as lots of businesses are keeping people working remotely for the foreseeable future.

And the losers

Of course, the biggest losers were automotive and events, plus hospitality and the airlines, these sectors are all struggling as we are not buying cars, travelling abroad and we can’t go to events anymore. And the uncertainty of when we will be able to is what really makes it devastating to those industries.

Furlough is ending next month, and more redundancies are expected to follow. People without jobs spend a lot less and ultimately lose their houses if they can’t pay the mortgage. This all has a huge effect on the economy as a whole and let’s not even mention the astronomical debt the UK now has.

Can we do anything?

But individually what can we do about all that? We can’t stop the virus and we can’t make people spend what they don’t have. Worrying yourself into the ground won’t help anyone! However, as small businesses we can do our bit.

If things are going okay for you, keep spending. Outsource work and keep money moving around, it all helps create those little green shoots we need to get out of this. Please don’t feel guilty if you are doing well either, that is the way of the world. Instead try and give something back and give value with free advice or services to those most in need. This is not only an immense help but also brilliant for your brand.

If things are tricky and you are struggling, then try and think of new services that will be needed or change your target audience. And do ask for help. Sometimes you can’t see the wood for the trees and other people can come up with great ideas or solutions. Forums like this one or a decent business Facebook group or LinkedIn are all good starting points.

Chin up!

But above all try and stay positive. We have weathered recessions before, and we will again. It will get worse before it gets better but keep going and one day 2020 will just be the year we cannot quite believe ever happened!

Do you have any top tips for getting through a recession?

 

Comments

It's an interesting time, obviously worrying for a lot of people, but I wonder if some of the changes we are seeing are here to stay.

With more people working at home, and big corporations looking at making at least a percentage of the workforce homeworkers moving forward, there is a worry that city centres and businesses dependant on lunchtime workers will suffer. But it also means more people are spending more time in their local area, spending money in local shops.

Could this be a lifeline to the local highstreet which has been in decline now since this interweb thingy was born. I think we will see a shift in businesses as companies react and adapt to different markets and requirements. With so many people home working, I can see opportunities that will encourage people out of their houses and be sociable (as much as we're allowed to be!) Maybe clubs, exercise, organised meetings hosted by local coffee houses, homeworkers pasty from Greggs, who knows.

My team are all remote working, it's actually worked out ok with twice weekly zoom calls to keep the team spirit up and have a good catchup and some all important banter. Since March I have an empty office just sat there and now I'm wondering if I actually need it, which I imagine many business owners are thinking similar thoughts.


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Yeah I am 1 of the lucky ones .. I have never been busier at work. A lot of shops we deal with got grants to buy items and a lot of them have bought new scale equipment.With every new purchase we have to program and install and train etc + there are my own jobs to do of repairs and servicing scales , slicers and vac packs , so is never ending for me.

Steve I know how you feel , if you can remote work it is great as you can save a small fortune as you then don't have to pay for the office + water lights etc etc. The only set back is you have to know that your workers are not lazing about doing nothing lol

 


Thanks
Andy-C | Pewter World

Just having a long overdue catchup!

Steve I know how you feel , if you can remote work it is great as you can save a small fortune as you then don't have to pay for the office + water lights etc etc. The only set back is you have to know that your workers are not lazing about doing nothing lol

 ”

 

You've raised a good point, as remote workers are a common worry for business owners, which is easily overcome if you analyze it, and the worry isn't rational.

In reality, a bone idle or workshy employee will be the same in an office or at home. It's spotting it and managing it that's the key, which is easily done as we naturally progress to task-based employment versus factory worker mentality of 9-5 working.

I feel a new post coming on 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

I couldn't agree more and businesses need to be more agile and step away from micro managing staff, as it's not necessary! Empower your staff to do the work and let them get on with it!


hahahaha .. You are speaking about my boss, she has to micro manage me all the time and it does get annoying. She also does anything to get me to come into work and if not she phones me to see if I am at work with some excuse or other lol


Thanks
Andy-C | Pewter World