Sussex Businesses To Show Resilience Against 2018 Challenges

2017 has seen the Sussex region continue to contribute greatly to the British economy, thanks to the region’s 60,000 active businesses, an economy worth £30 billion, and half a million people in employment.

With the city of Brighton standing out as a major entrepreneurial hub, a bright future is undoubtedly ahead of this South East England region.

However, the road to success for business owners is paved with many challenges.

2018 Challenges

For one, the aftermath of the Brexit vote plunged the British pound to an all-time low. Its current value is still 10% lower against the dollar and 15% lower against the euro. This brings huge repercussions to businesses, regardless of size. In fact, profit growth for big UK firms are projected to only be at 7.2% in 2018—a massive drop from 19% in 2017.

Operations will either be delayed or brought outside the UK. Sussex businesses are urged to focus on better marketing strategies and consumer relations to position their brands.

Leaving the EU also means trade will be affected.

Post-Brexit, the UK needs to negotiate new trade deals with EU countries. The outcome of these agreements would set the tone for the future of UK businesses, and speculations expectedly run high. Tariffs could be higher for both ends of the deal; the EU could impose quotas, there could be less trade deals due to tariff barriers, lower incomes, or less bargaining power for the UK without EU’s support.

All the uncertainty drives investors to be, at the very least, wary of striking deals. On a lighter note, however, Brexit offers an opportunity for small and micro-businesses to have more flexible trade deals with other countries.

With inflation hitting a five-year high of 3%, consumers are even less likely to purchase. In addition to this, the Retail Price Index measure of inflation stands at 3.9%—another five-year high. This will be taken into account on April 2018’s business rate increase, putting Brighton and Hove’s economy especially at risk.

When it comes to the workforce, more and more millennials are going to join the labour pool by 2018. Training the coming generation is a continuous learning experience for business owners, especially since millennials have a different mind-set when it comes to work.

If you have members of the younger generation in your team, empathise with their motivators and make effort to utilise their specific skillsets. Although their way of working may be different, often you’ll find they have unique insights into the current market.

Finding ways to secure funding will always be part of running a business. However, confidence in banks and the stock market remains low. Fortunately, there are a number of options you can explore to acquire grants and funding, which includes The Funding Room, Hove Business Association, Brighton & Hove Chamber of Commerce, and Sussex Chamber of Commerce.

The bureaucratic process in both local and national government makes it difficult for business owners to comply with an increasing number of regulations. Changes in tax policies and delays in enquiry processing are but a couple of instances.

In 2018, the wisest course of action to take is to stay in touch with your Brighton accountant and tax advisers to make sure your business will not hit any snags, legally or financially.

Technology-wise, the GDPR and Google’s algorithm update are poised to affect all business next year.

The General Data Protection Regulation (GDPR) is set to be implemented in 2018, regardless of any agreement settled post-Brexit. Although fines for non-compliance can go up to €20 million or 4% of a firm’s annual revenue, an estimated 80% of UK organisations may still be fined.

If you do not have a strategy yet, sit with the heads of your IT, marketing, and legal departments to brainstorm a sound business plan for GDPR.

Lastly, Google’s shift to mobile-first indexing will impact all businesses. By 2018, if your mobile page does not mirror the contents of its desktop counterpart, your mobile visibility will end. Get to know this algorithm inside out, so you can plan ahead and strategize accordingly.

If you want your business to tackle 2018 head on, then you should anticipate all possible issues and figure out how much it would affect you. Come up with a sound plan, consult with the experts, and get ready to enter 2018 with your mind set on winning.

Thanks to Nick from Plummer Parsons for writing this blog 

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk