Recession-Hit Firms Fight Back with Sales

Posted by martinparry on March 29, 2010 under Marketing, Sales, SME News, Social Networking | Comments are off for this article

After cutting operating costs to the bare minimum, many smaller firms are hiring sales staff, improving their websites and boosting marketing activities in an effort to tackle tough trading conditions. So says a business survey carried out by the FPB. They also found that business owners expect their efforts will pay off. More than half (56%) of those surveyed expect to increase their turnover in 2010 and 44% believe their business will grow.

The findings are the first of the FPB’s new ‘Economy Watch’ panel – a body of more than 350 members who are sharing their experiences as the economy heads away from recession. The panel is designed to provide an accurate and timely reflection of what small businesses are experiencing on the ground. Its findings will be released on a monthly basis.

The results of the first Economy Watch panel paint a generally positive picture, with firms expressing a defiant attitude to the downturn and only 13% concentrating on cutting costs. Perhaps surprisingly, 80% of those surveyed described the cost of borrowing as ‘affordable’. However, business owners expect to see continuing tough times ahead. A significant 60% of those surveyed expect to see the general cost of business to increase this year and an overwhelming 76% are anticipating tax increases.

Additionally, almost half (48%) of those surveyed had been required to provide personal guarantees for loans, while 26% had to secure loans, often on properties, in order to access affordable interest rates. Some members reported interest rates of more than 20% for unsecured borrowing.

Sc: http://www.fpb.org/news/2307/Recession_fighting_firms_focusing_on_sales_and_marketing__survey_finds.htm