Michelle Rodger: New bottom line is blue sky thinking

Published on Saturday 27 December 2008 12:56

MY NEW Year's resolution list is short and sweet: I want to be smarter, lighter, have a higher profile and experience a life-changing meeting – that's all business-related, of course, nothing personal.

New Year's resolutions are ambitions, intentions, goals and aspirations, something you really want to do. In short, resolutions are the bare bones of a business plan. If you're anything like me then your business plan will usually be out of date as soon as it's completed and will probably end up in a desk drawer, but the real value is in the process of planning.

So what will you business owners be planning for next year?

Not surprisingly, I predict 2009 will be all about the bottom line; maximum efficiency with minimum impact, cutting costs and adding value, leveraging everything possible to create more for less.

But it doesn't have to be boring, tedious penny-pinching all the way. I also believe necessity is the mother of invention, and by putting innovation and creativity at the heart of every organisation, the opportunities in 2009 will be exciting.

Early adopters will recognise the key trends in IT and communications, such as cloud computing and social networking. Cloud computing is a paradigm in which information is permanently stored in servers on the internet and cached temporarily on your office or home computers. It's an effective cost-cutting measure which allows you to pay only for what you use. In admin terms, better use of technology for document control also means less paper and better efficiency. It's also greener.

Social networking will be much more powerful next year. There's a popular idea that we are all within six introductions of meeting anyone in the world. The rationale behind this suggestion is that we each know on average 250 people, so if we can contact the people they know and they contact the people they know and so on, we should reach the contact we want. In the event your little black book falls short of the required 250 contacts, enabling social networking on your website will allow crucial engagement with your customers and also your suppliers, who shouldn't be forgotten in the haste to win more profitable business.

For SMEs and home-based businesses, the rise of business support and networking sites such as BT Tradespace will be an essential platform for new business development and communication with potential customers.

Talking of communications, 2009 will also see wider use of mobile communications to get the most out of those employees who still have a job; BlackBerry, iPhone and Windows mobile devices can be leveraged to open up those out-of-the-office work opportunities and can even be used to speed up the invoicing process.

The credit crunch brings its own set of challenges for HR, and 2009 will see a significant drop in recruitment and retention efforts and a renewed focus on outsourcing. We'll see more independent freelancers (if you're looking for a career change, you might want to consider going freelance, there's plenty of work now and over the next 12 months or so, and when the tide begins to turn, you'll be perfectly poised to take immediate advantage when the hiring starts again in earnest).

For sales and marketing, the pitch for 2009 is simple. If you can say "this will save you money", there aren't many customers who wouldn't want to hear more.

The Government's Prompt Payment Code should make a positive impact. What a great idea, to suggest that businesses should actually pay within the agreed time period. Unfortunately, it's a voluntary code. I do think there needs to be a rigorous and robust system of ensuring protection of small businesses who are the most vulnerable to tardy payment.

The Government has also announced plans to allow SMEs to offset their losses up to 50,000 over the past three years and to spread tax payments out across the year. Both measures will help stabilise cash flow, and you should be taking advantage of the tax payments however strong your cash flow. That money is better off in your bank account than that of the HMRC (call the dedicated support line on 0845 302 1435 for a decision within 10 minutes).

If you haven't done so already, you should apply for your share of the multi-billion-pound funds available for business grants. The Small Business Finance Scheme, the European Investment Bank funds and the temporary guarantee scheme for exports each have 1bn to help SMEs with capital and investment needs.

Clearly, I'm wearing rose-tinted specs. So far these have all been opportunities, but every silver lining comes with its own dark cloud, and despite the Banking Code, 2009 will ultimately see businesses still struggling to get credit, and the planned government legislation for next year and beyond won't make things any easier.

Small firms bear a disproportionate burden of any costs associated with the introductions of new regulations, and 2009 will bring a number of new regulatory challenges for SMEs; licensing legislation, employment regulations, the decision to extend flexible working hours for parents of children up to 16 revealed in the Queen's speech, imminent changes in the 48-hour working week, have all been announced this year.

But there are more looming on the horizon. Twice a year a number of key government departments issue changes to business regulations. Called Common Commencement Dates, they are supposed to save small businesses two of the things they hold most dear: time and money. CCDs occur on April 6 and October 1 each year, and a new CCD summary page is published some 12 weeks ahead of each date, so log on in early January to get a heads-up on what you can expect.

Wishing you all a prosperous New Year.