There is a lot of noise in the business community at present around the headwinds coming in 2025. It’s undeniable that running a business is challenging at present, but let’s focus on what we can change rather than what is beyond our control.
We have had the October statement, the March budget and more recently the carnage wrought by Trump that has brought in difficulties and challenges that seem to be piling up on top of each other. Although it is difficult to remember a time since 2020 when we have been able to run our businesses without significant headwinds. I suspect that challenging times are here to stay in this volatile, uncertain, complex and ambiguous (VUCA) times.
I was at an industry conference last month and after my initial keynote talk (on putting people, planet and purpose before profit) was followed by what can only be described as a ‘moan fest’ about the latest government policies on NI increases and the removal of Business Rate Relief for hospitality businesses. All this has impacted my businesses too, but after an initial day or two of frustration my team and I started to think about what we could do to grow sales and profit in this coming year. Much better to focus on what is within our remit to change rather than what we have no agency to change whatsoever, unless you happen to be a government minister!
So, let’s focus on what we can do to increase revenue and profit this coming year.
Firstly, have a plan. We have had a few years when we have been riding the waves of circumstance: huge growth in 2020-22 and then a slight drop-off post-Covid and then having to significantly cut costs last year. It has been a constant adjustment to new circumstances and, whilst we did have KPIs and plans for these years, they weren’t clear enough to the team. So now we have seven clear goals for each team and these targets filter down into more specific KPIs for each team member and how they are going to achieve them.
Nothing new here at all, but we are a business that has been very much a heart and culture-led business focussed on keeping our people happy. Happy people are productive people who create a profitable company. And that all remains, but we have brought in a little more structure into the strategy side of the business.
Secondly, it’s no good having a plan without regular follow-up on that plan. One to ones will happen at least every two weeks where progress on individual’s KPIs will be monitored. If help is needed to deliver them, then that will be given. Too often the words ‘performance management’ has negative connotations with the most likely outcome meaning the individual leaves. This isn’t what it is meant to be about at all. Who wouldn’t want to lead and manage their people to achieve maximum performance which gives huge job satisfaction to the person and a great outcome to the company. I am convinced that coaching-style leadership is the best way in the 21st century and helping our people achieve maximum performance is a vital part of that.
Third, and no surprises that I am saying this for those who know me. Continue to spend money on creating a great place to work. Some may want to slash costs here in difficult times, but that would be short-sighted. Yes, there may be some trimming to do, but companies that are generous to their people, ensure there are great benefits to working there and invest in them will reap the rewards. We are just waiting for the results of the Sunday Times Best Places to Work awards for this year, but it’s no coincidence that most of those nominated are not just great places to work but are growing faster and making more profits than the average UK business. So, invest in your culture and people will stay – and we all know how much it costs to replace good people.
Fourth, doing the things that your competitors are not doing might be a good move. I am a great believer in zigging when everyone else is zagging. Despite the current economic conditions, now might be a fantastic time to invest in a new product or a new site if you have the cash or can borrow the money to do so. It’s amazing how many businesses started up around the time of the financial crash in 2008-9, some of which are huge now – Airbnb being one of the largest.
Finally, as a leader make sure you are making space and time for yourself. When times are tough it is easy to think that I will put in an extra ten hours a week to get through the challenges. The danger of doing that is becoming stuck in the weeds and then being unable to see the big picture. Good leaders create space and time to reflect and think and the most creative ideas flow from that. It is essential to get into nature and away from your devices and spend time ‘being’ rather than being in a constant state of ‘doing’ or productivity. Yes, I work hard like many entrepreneurs, but I also create space and time to do nothing and come back more energised than before to make positive changes.
So, in summary, have a clear plan, and coach your people to achieve it. Continue to create a positive culture and look for new business ideas whilst regularly taking time out to reflect and think. That way, 2025 may well be better for you than others.
