Small Businesses Plan to Expand This Year
Almost half of small firms are planning to capitalise on the economic recovery and expand in the next 12 months, according to research from Barclays.
The survey of 3,675 small firms found that 49 per cent are planning to expand over the next year, while 34 per cent plan to consolidate their position.
“A large number of small businesses are poised to expand when the time is right, perhaps taking advantage of any upturn in the economy,” said Barclays Local Business managing director, Steve Cooper.
“While firms should be cautious about expansion in the current economic climate, the recession could present opportunities as other businesses downsize or disappear.
“Any decisions to expand should be carefully considered, but there are good reasons to expand at the right time,” he added. “Businesses with growth plans could be taking advantage of a completely different competitive landscape, where key competitors are missing or have downsized.”
BRAVE enterprise agency adviser, Bill Hammill, said that it could be risky for businesses to expand if they don’t manage their finances or recruitment adequately.
“Often businesses will overstretch themselves or will not have the required skills in place to help them manage growth properly,” he said. “They need to make sure they have done adequate business planning, particularly on the cashflow side, to ensure they have the money to finance the growth.
“Businesses planning to grow should also think about the management they will need to support them and whether they need to employ new staff to undertake the new processes of the business,” added Hammill.