The latest inflation statistics have just landed, showing a slight decline in inflation, and we´re already seeing the predictable aftermath. These figures have resulted in all sorts of media reports, with politicians puffing up their chests and pundits buzzing with excitement. They’ve already started dissecting every detail related to inflation statistics, interest rates, and other economic indicators – all of which inevitably lead to more questions, especially for business owners.
So what´s the significance of this?
Unlike many other articles that will come out explaining the change in inflation and guesstimating what this means for business owners, I prefer to take the more controversial route. Why? Because it´s actually a lot more valuable for business owners like you.
Is the economy that important or not?
Let me pop this bubble of hot air by telling you that whatever the statistics are, it doesn’t really matter!
Sure, these figures provide a handy snapshot for politicians to gauge overall economic activity. However, they are averages across around 5.5 million UK businesses plus government spending, totalling a staggering £2.274 trillion. This means that, as the average is based on not millions or billions but trillions, your or my business is a very tiny fraction.
The important point about any economic statistics – is that your business is not average. And, if your business isn’t average, those statistics aren’t very relevant.
Very importantly, your business is a distinct entity with its own numbers. This means it´s crucial for you, like every other business owner or manager, to take command of your metrics and own your results. Why? Because only by understanding and consistently monitoring your own numbers can you truly steer your business effectively.
Yes, there are outside forces that act on everyone, but it is up to each business owner to deal with them and find a way to make their individual business a success. And I think this is a truism for every business everywhere.
Want to actively manage your business and get results? Get in touch with us at [email protected].
What business owners should be focusing on
Forget those broad inflation statistics; they’re just background noise. What you and I really need to focus on are our numbers and how we can improve them!
For example, ask yourself:
- How can we boost our sales and profit margins?
- How can we refine our current marketing strategies or create effective campaigns to expand our market presence and truly resonate with our target audience?
- How can we strengthen our teams through effective leadership and continuous training?
- Are our supply chains as lean and resilient as they could be? How can we trim costs whilst enhancing product delivery?
- How effectively are we harnessing technology to supercharge our operations?
Streamlining our processes is key in the complex dance of the 1,001 moving parts that make up the intricate machinery of your and my business. So, this is an area that you should focus on.
After all, knowledge is more than power—it’s a catalyst—and once you understand your numbers, you’re already halfway to improvement.
Your figures will not only paint a clear picture of the present but also map out potential futures. They will help you identify areas for improvement, and then all you need to do is follow up these insights with action.
If all this seems daunting and you’re thinking, “But how do I start mastering my numbers?” or if you need a solid plan of attack for business improvement, don’t worry. Help is just a conversation away.
Reach out and book a free meeting with JVCA [email protected] —your friendly neighbourhood accountant. We’re here not just to crunch numbers but to provide insights, guidance, and strategies tailored specifically to your business landscape.
