Is Now the Right Time?

Investing to grow, that’s what businesses do, this is how the business world evolves. But today, on a global scale, you would be forgiven for thinking we are going backwards. Political uncertainty, the “B-word”, trade wars, the rise of protectionism, slowing growth in China… the mix hardly inspires you to get your wallet out. The way we Brits deal with these sorts of situations is to keep calm and carry on! There is no precedent for these times, which does at least provide some confidence and clarity of thought. Nobody knows what will happen so, as a business decision-maker, I have to do what I feel is right to grow the business, with what means are available.

Ploughing funds into inventory or stock-piling cash, may be a way to minimise any short-term negative effects of something like Brexit, but how long can that last? What could those funds be employed to do to create new prospects, when your competitors may be floundering? What if those negative effects never materialise (or get delayed another 6 months)? What cost does this capital have on your business? The clock of opportunity ticks away.

In the UK, the job market is buoyant, with unemployment reaching lowest level since 1974. However, distribution of expertise and resource across the economy is not even. Certain sectors are crippled by the lack of young talent being fed in to businesses which could be seen as stifling the forward-looking nature of some industries, and decision-making associated with innovation.

Indecision is rife, not just in innovation, but investment on a global scale. Reuters have reported Global M&A activity in the first quarter of 2019 as down by 17%. But in these times, and the technological innovation possible, who can afford to be complacent? How vulnerable is your business to your current competitors stealing a march, or a new entrant disrupting your way of business? Could now be the right environment to make your own investment? Could your company’s knowledge and experience make a difference to a complementary but under-performing business?

A new report out this week from accountancy firm Ernst and Young places the UK as the number one most attractive country as an investment destination over the next year, supporting the view that the uncertainty surrounding leaving the European Union and the indecision created from it, has led to an undervaluing of assets or businesses in the UK. From the point of view of attracting foreign investors or acquirers, the UK has a lot going for it.

For North American companies, the UK has, for a long time, been an excellent testing ground for international expansion and a gateway to the rest of the world. Large businesses open to such investment opportunities are likely beneficiaries, but there are arguably greater rewards available to the proactive SME, not only through investment but foreign businesses looking to establish a UK presence through partners.

What is the next stage of your business’ own growth journey? Are you open to outside investment, for complementary skills, strategic partnerships and how proactive are you prepared to be to find them? If you have funds and ambition to expand, then I would argue now is a wonderful time to accelerate your growth through acquisitions or partnerships.

Where Now Consulting are experts in growth, whether you are a small business looking to expand, a larger organisation or part of a group, Where Now Consulting works with you to create practical business solutions whatever the challenge. Our services include Sales and Channel Strategy and Management, New Market Entry, M&A, Alliance Partnerships, Business Performance Improvement and Market Analysis & Insights.