Resources

Going for growth

Resources

Going for growth

This page was last updated on November 19, 2024

Our November Business Club discussion explored business growth and the ingredients and Government support needed to encourage it.

Why growth can be elusive

For the past few years, nearly every Chancellor’s Budget or Statement has pitched growing the UK economy as one of its primary objectives. It’s not surprising this is such a focus. In June, The Resolution Foundation’s report found that GDP per capita had grown by a mere 4.3% over the past 16 years, compared to 46% in the prior years.

The report from the politically independent group emphasised productivity as a key contributor to the poor growth. It said that since the 2008 financial crisis, productivity growth has been the slowest for two centuries.

Of course, productivity is just one factor contributing to growth. Business investment and consumer spending also play an essential part, which comes from having confidence and the money to spend. Lessening the tax burden helps this, but as the new Government has advised everyone, there’s a ‘black hole’ it has to fill.

In her 2024 Autumn Budget speech in October Chancellor Rachel Reeves, under the Government’s ‘mission for growth’, announced:

investment projects,
reforms in areas such as planning,
a 10 year infrastructure strategy,
a publication of the Get Britain Working White Paper and establishment of Skills England, plus
productivity improvements in central Government, the NHS and HMRC.

Growth-supporting tips

UK businesses and individuals are renowned for being resilient, resourceful and often entrepreneurial. After several years of uncertainty, and with a new Government in charge, we decided to explore practical ways to support business growth in our November Club session. We discussed:

One simple tip Club Members would give a business is to help it grow.
One recommendation they’d make to the Government to support economic growth.
A business or brand they admire for its growth.

Club members shared a variety of practical tips and ideas. These grouped into the following themes.

Have an active plan

While many businesses talk about growth, only a few have an active growth strategy defined and in place. Create a plan and ensure your team contributes to it and is on board to implement it.

Having an aligned leadership team will also greatly help. The more successful businesses demonstrate a team with shared attitudes to risk and the growth ceiling they want to reach. They also conduct regular reviews of the plan and scenario planning to help the strategy stay on track.

An agile mindset is also needed – to enable the business to pivot when a new opportunity or challenge emerges.

Be savvy to your return on investment

Have a clear understanding of the return on investment in your business. The more you know what works (and what doesn’t), the more you can emulate the good bits – and divert precious resources away from the areas which aren’t working for you.

For small and medium-sized businesses with finite budgets, this can release funds to make greater use of the likes of technology to boost productivity. Also, make the most of whatever tax breaks are available to invest in the business, such as capital allowances.

Nurture a talented team

A basic fundamental is that you have to do good work if you want customers to buy from you. This means your team need to do the right thing and be empowered and paid well to do so. The talent in your business will play a key role in your growth.

Consider how your current recruitment, training, incentives and internal communications support your growth plans. Can you improve any aspects?

Be more visible

Raising your visibility in your market will be vital to business growth. It helps if you have a consistent and positive brand to build awareness. In doing so, remember that everyone in the business has a part to play in conveying and demonstrating the brand message. Collectively they embody the brand, so work hard to build alignment and a shared ethos and approach across your team.

Business and economic growth recommendations for the Government

Following the Autumn Budget and after many years of depressed economic growth and business uncertainty, Members put forward the following recommendations:

Give more help to small and medium-sized businesses through tax breaks
Include more consultation across the board before instigating legislation
Improve the UK’s appeal to overseas investment
Reform the planning system – get rid of red tape at a local level to help fuel growth, investment and create jobs
Rebuild the UK’s relationship with the EU

Admirable businesses and brands

When asked to put forward examples of a business or brand they admire for its growth, the following were mentioned and ranged from international icons to smaller, local businesses:

Apple, Netflix and Amazon – for transforming people’s experiences in their respective areas
Rolls Royce – for representing the face of the UK and helping to bring other investment into the UK
Savills
Duchy of Cornwall – for its eco and sustainability focus and drive
Bubblegum Balloons in Farnborough – for its continual listening to customers to further improve its offering and increase its market visibility.
The San Moriz tanning product brand is a UK business taking on the international arena for tanning products.

Thank you to all the Club members who supported our November event and shared their ideas. If you would like to attend our future Business Club events, please get in touch with the Shipleys’ Godalming team for more information.

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