And What Now For The Economy?

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

I am getting mixed reports from the sector at present. Some our my sales team are reporting that there is more caution around than they have seen so far this year, but on the counter-side our first few Christmas orders are considerably larger than last year’s early orders. One 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 in May. (Better weather promised for the second half 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 at present, as if there is a little more stability to the British economy with a new coalition government at the helm, but how long this honeymoon period will last 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 most 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 over the next few months. I have worked with a couple of other businesses of late and am amazed at the complacency there is in small food businesses sometimes. It only needs someone to take their foot off the gas for a short business and turnover tails away and soon the company can be in trouble. There is a constant need for all of us to be driving things forward the whole time. This doesn’t mean running around like a headless chicken, but 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 is now more than 33% larger than it was last year. And there is nothing like knowing that we as a company have to turn-over per month over £200k just to pay the wages – and that doesn’t include any other costs or me! Certainly helps focus the mind on the job at hand!