The global economy has been suffering terribly over the last five or six years, and that’s mostly due to western governments thinking that it’s okay to give billions of pounds worth of public money to banking institutions that already rob us blind. Of course, we all know the banks have us by the privates, but they did not deserve any extra help when solving a problem they purposely created. However, as a lot of politicians are corrupt and only looking to line their own pockets, we should have expected nothing less.
Thankfully, the economy is now recovering slowly, and while we’re certainly not out of the woods yet, things are looking up. With that in mind, today we’re asking what a recovering economy means for new businesses. You see; for the past couple of years rates have been relaxed (or even waived in some circumstances) in an attempt to encourage innovation. Will this continue? Or are things going to get worse for new entrepreneurs? Let’s find out…
A better economy means more spending
If nothing else, an improving economy means the public will be more inclined to start spending their money, which is obviously a positive thing for new business owners. Most people have been saving like mad since the start of the recession in the hope of keeping themselves above water, but consumer confidence is now very much on the rise.
A better economy means more businesses
So long as they’re not directly competing with you, having a few more businesses around can be a very good thing. You might find networking opportunities, or even new avenues for making a profit within your own firm. Also, high streets are likely to improve, which is good news for anyone operating a retail outlet, as you’re likely to get more passing trade.
A better economy means business rates are back
In the UK at least, business rates we waivered for new companies for the last couple of years, however, this will change pretty soon meaning many of the firms started recently will have to make a much higher profit to stay afloat. That is obviously a bad thing, and it could result in certain business owners going bankrupt pretty quickly.
A better economy means there’s more money to invest
So long as a business is currently doing well, a better economy should mean more sales, and thus more money to invest in growth and progression. For that reason, many of the company bosses who’ve reared their heads over the last couple of years should finally have enough money to patent their products and trademark their branding. Trademark attorneys from LondonIP.com are expecting an influx of business over the next few months, and so are many other industry experts.
So, in answering the question posed in the title of this post, new businesses shouldn’t do too bad across the board. There will be some exceptions, and that’s a real shame, but all the most desirable and relevant companies should be around for a long time yet.
Catch you later!