And What Now For The Economy?

17 May 2010, 17:56 pm
Speciality Bites by Paul Hargreaves

I write with particular reference to the speciality food sector, and am wondering whether the recent long-drawn-out election result will make any difference to us?

I’m getting mixed reports from the industry at present. Some of our sales team have reported that there is much more caution around at present, but on the counter-side our first few Christmas orders have been considerably larger than last year’s.

A farm shop in Surrey, that has been reporting negative growth for 18 months, has just started to see a slight uplift in sales – and that in what has been a miserable month for weather so far (better weather is promised for the rest of May, apparently.) Cotswold Fayre has had a record April and the best ever take-up of our promotions.

Despite the down-turn of sterling against the dollar, it does feel as if there is a little more stability to the British economy with the new coalition Government at the helm. But how long this honeymoon period lasts is anyone’s guess. However, let’s make the most of the slight wave of optimism in the air – and before VAT goes up to 20%, which it almost certainly will!

One thing not in question, though, is that hard work in the right direction will enable all of us to grow our businesses. I have worked with a couple of other companies of late and am amazed at the complacency of some small food businesses. It only needs someone to take their foot off the gas for a short period for turnover to tail away.

There is a constant need for all of us to be driving things forward. This doesn’t mean running around like a headless chicken – it means strategizing and putting the right systems and people in place to get the job done more effectively and profitably.

Due to the recruitment of five extra staff since the beginning of 2010, my own staff’s wage bill has increased 33% since last year. And there’s nothing like knowing that the company has to make over £200k per month just to pay the wages – and that doesn’t include any other costs, or me!

Putting things in perspective certainly helps focus the mind on the job at hand.

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