What to do in a world of uncertainty
2026 has been a very difficult year for a lot of soletraders and small businesses. We work in a world of uncertainty in politics, worldwide issues and finances.
It can sometimes feel difficult to stay motivated and keep pushing through until something more positive comes along.
The recent budget left very little for small businesses in it.
A fuel duty freeze until July 2027 but fuel costs are at an all time high without the taxes.
Minimum wage will be going up to £13.21 from April 2027 for those aged over 21.
No reductions in employers national insurance apart from the original employment allowance.
Landlords seeing an additional 2% charge on income tax rates on profit from rental properties from April 2027, making this income chargeable as 24% as a basic rate tax payer.
Some positives Capital gains tax remained unchanged.
We see a lot of business owners selling property to put money into their companies. We see a lot of first time owners of a business, using their capital to invest in a new business venture.
Business rates for Wales we wait to see if there will be a discount for Retail and Hospitality businesses from April 2027.
A small production relief of £10 million for Small alcohol producers
They did announce a founders relief for high growth businesses, but very few small businesses are likely to be able to apply.
Bank charges and interest rates and access to finance remains with very high interest
charges. The banks have been asked to pay a higher contribution on their taxes. We wait to see if that affects businesses further.
The building of more homes, will hopefully give the construction industry more work in the coming years.
What can you do when the World around you remains uncertain
You need to make a plan, if plan A isn’t working out, start working on plan B. Write it down
Weve had this before in the crash of the 1990’s, the financial crisis in 2008, Covid, weve bounced from hovering recession to recession. And yet were all still here. Definitely a little bruised, but our resilience and ability to adapt like a chameleon has kept us still standing, even in the face of adversity. Your strength and resilience has made you a survivor, where lots of businesses fail in their first two years.
The clients that have planned their way forward, and adapted their behaviour as time changed, have made it through all of these challenges we face.
They don’t overspend, they keep money back for a rainy day. They invest in their own futures by putting money into a pension. If costs have gone up, they have reluctantly addressed those price changes. They also don’t lose sight of the customer needs.
Weve also had a couple come through looking at the next generation of business owners within their own company. Management buyout and staff share schemes, and encourage the next generation to build on their own future with the company. Business Asset Disposal Relief is still there to be taken advantage of. Its at a higher rate now of 18%, if youre not lucky enough to be able to apply for the founders relief fund.
Mitigate the risk
You can only control what is in your immediate power, even if it means you need to adapt.
Review your costs direct and your overheads as a business. You can guarantee any large companies youre dealing with have put up their prices. They don’t always tell you they’ve done so.
If a cost isn’t giving you value, look at something else.
Marketing what are you doing to keep your name on everyones minds. Plays an ever more important part of the business owners day, when competition for the same type of services remains high. Keep reminding everyone about your core values. With the customer attention in mind.
They cant buy from you, if they don’t know you exist.
Try not to over finance. Be sure you’ve worked out the numbers that you can pay any loans back over time.
If you have to put in personal money to feed the company temporarily that something you may need to do. Think of it like a plant, it needs feeding from time to time.
If you do have credit cards or loans in the company. Is another company offering a better interest rate. Move to that company instead and use the savings to pay off the
credit cards. Higher interest rates off first.
Your sales, regularly review your services and products. If its not selling, focus on what does sell. Take the lead from your customers.
If youre in retail, regularly review your shop window, keep things fresh to bring your customers in time and time again. Have a social media presence to bring customers in to travel to you.
Hospitality look at events in the area, could promoting that event bring more spaces filled for you.
Don’t have all your eggs in one basket. Have multiple customers and multiple revenue streams.
Stay motivated
Remind yourself why you set up the business in the first place, keep focused on what that dream was. Was it be your own boss. Was it for the work life balance, was it to build a more secure family future. Keep reminding yourself of why.
Build in rest days. A business owner that has had some rest away from the business, is more refreshed to take on even the most challenging of events.
Take up a hobby, do something with your free time that motivates you, relaxes you. See nature and the countryside, visit the sea. Something that is completely different from your day to day.
Stay healthy