Policy News

CHAMBER MANIFESTO RECOGNISES CHALLENGING YEAR AHEAD FOR BUSINESS

Yamazaki Mazak in Worcester hosted the recent Economic Conference which included the launch of the Chamber Manifesto for 2022/2023. Speakers from Herefordshire and Worcestershire reported on successful outcomes in the last year and looked to a challenging year ahead. The Manifesto outlines activities that the Chamber will undertake to represent the interests and address the challenges faced by the membership. These challenges have been identified as a result of 12 months of research through the Quarterly Economic Survey (QES) and hundreds of consultations conducted by our Membership team. The QES provides valuable insight into performance, and most importantly outlook for businesses. Herefordshire and Worcestershire Chamber of Commerce consistently return more surveys than any of the 53 Chambers in the UK and were recognised by David Bharier, Head of Research for the British Chamber of Commerce, at the conference. The most recent survey was enlightening for a change in outlook. The survey completed in November 2021 indicated a “cautious optimism” for business in terms of sales, cash flow and profitability. This was contrasted by in March 2022 with 14% of businesses expecting sales to decline in the next 3 months, 22% expecting cashflow pressures, and 19% expecting profitability to decline. The Manifesto, however, is not a snapshot of current opinion, it is a culmination of research over a wider period of time and a greater sample of surveys and membership consultations. The 2021/2022 Manifesto had Covid 19 as an underlying factor. This year’s does not ignore the impact but does look forward as society tries to live with the virus. As with last year, the Manifesto has six key sections, and these are Business Growth, Business Costs, People, International Trade, Technology and Sustainability.

BUSINESS GROWTH

This section was called Covid Recovery last year – Business Growth is more appropriate as we try to emerge from a Covid world. Whilst a degree of caution is attached to any business growth, of those recently surveyed 65% still expected turnover to increase in the months ahead. To help facilitate this the Chamber will deliver a series of industry forums such as the Growth, Manufacturing, and Food and Drink Forums, brand and profile raising events like the two Expo’s, and regular networking events across both counties such as lunchtime networking and breakfasts to help businesses make new contacts and develop existing relationships.

BUSINESS COSTS

Cost pressures are real. In recent QES’s 63% of businesses have expressed concern about increasing energy costs. 42% of businesses were experiencing supply chain delays and 21% cited changes to import and export regulations as a cost pressure. As a Chamber we will actively seek Members feedback in this area so that we can, through the BCC, lobby and highlight to central government the challenges at local level. We will also continue to share best practice through events such as the Manufacturing Forum and where possible highlight funding and schemes that will help ease the burden of riding costs. This is where wider information sources can be utilised. The Salary and Benefits Survey commissioned by Hewett Recruitment allows businesses to benchmark wage costs, Bank of England Briefings give a national view, and the Chambers “Finance Finder” can assist in the search of funding to ease cost pressures.

PEOPLE

This section was referred to as Skills last year, but there is more to this section, possibly our most important asset, than training and development and as such we have widened the subject. We will be connecting business with education and in turn preparing our future workforce. 49% of businesses reported recruitment would be a key challenge in the year ahead, and 39% of businesses viewed retention of existing workforce as a challenge. This is why in our activities moving forward we will champion workplace wellbeing, identified by 38% of businesses as a priority, mental health awareness, and encourage equality and diversity. The Chambers training and development offer, covering a wide range of subjects, virtually, and in person, in both Worcester and Hereford will support this activity for members. be underestimated in Herefordshire and Worcestershire. Be it food and drink to heavy machinery, businesses in the counties are contributing to local and national prosperity. The International Team will continue to represent the membership and use connections with the International Chamber of Commerce and 120 Embassies and High Commissions around the world. However, 42% of businesses report supply chain issues as a barrier to trade. At the same time, 34% of importers/exporters reported regulation and documentation as a problem. This is where relations with the Chamber’s documentation team, ongoing liaison with DiT, and the provision of international trade training will be a vital support service for Members and customers in terms of translation, ATA Carnets and Letters of Credit.

TECHNOLOGY

Technology was in the manifesto last year, rightly so as business strives to make processes more efficient and use tech to do so. This year, there is an emphasis on one critical area of technology – Cyber Security. Even today there is a higher risk of cyber-attack from foreign parties, but prevention is certainly better than cure! 31% of businesses cited cyber security as a challenge to their business. Equally, as business adopts more technology, our schools and colleges need to work with business to ensure curriculum matches need and the Chamber’s contribution to the Skills White Paper will ensure this is made possible. The Chamber will continue to champion the Midlands Centre for Cyber Security at Skylon Park in Hereford.

SUSTAINABILITY

Sustainability and climate change could not be more important in terms of business growth and general wellbeing. The Chamber, along with local LEP’s, and of course local councils have been driving the green agenda forward in recent years and will continue to do so. In recent surveys. 24% of companies reported pressure from clients to become greener. 28% of companies see the use of more sustainable energy as a key action, and most interestingly, 68% of businesses requested more information on funding to help the process. As a result, and reassuring that this is the case, the Chamber will continue to deliver the BEEP and LoCOP programmes and run Sustainability Forums in conjunction with these programmes. At the same time the Chambers sustainability hub, sitting on the website, will complement activities around the Herefordshire Citizens Climate Change Assembly, and Worcester’s Zero Carbon Objectives. Business Growth, Business Costs, People, International Trade, Technology, and Sustainability. Areas identified by the members and challenges to be addressed and supported by Herefordshire and Worcestershire Chamber of Commerce in the year ahead. Download your free copy of the report here:

https://hwchamber.co.uk/wp-content/ uploads/2022/03/Business-Manifesto-22-23.pdf

TRADITIONALLY ACCOUNTANCY HAS BEEN ALL ABOUT NUMBERS AND COMMERCIAL CONSIDERATIONS; BUT NOT HERE AT HAINES WATTS

Our client’s problems become our problems, they’re never just a number to us – we really care about the success of the businesses we work with and as a lot of our regional partners are business owners themselves, they can really empathise and advise on a peer level.

We really strive to build lasting, valued relationships and to make a tangible and meaningful impact. It is our clients’ success that drives us and we are proactively committed to helping our clients and colleagues achieve their business and life goals in a passionate and authentic way, as these are the key traits that underpin everything we do. At the heart of our firm is our colleagues, which is why team engagement has become more important than ever before. We have achieved 1-Star recognition from Best Companies for this and we are also one of the Top 10 best accountancy firms to work for in the UK, investing heavily in colleague wellbeing and mindfulness. As the face of the workplace has shifted since the pandemic, we have adapted and challenged what the working environment looks like for our teams, creating an environment fit for the future.

We’re here for the long haul. Whatever challenges you face from starting up, right through to exit strategies and everything in between. Our national presence gives us a broad overview, and you, access to many different specialist services.

www.hwca.com

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The facts and story your numbers tell you matter for:

BUSINESS GROWTH AND BUSINESS EFFICIENCY

Financial facts and data aren’t always the “sexy” part of the business. But how do you make decisions without facts and data that are accurate?

In business, accurate data is critical to growth and efficient operations. If you don’t know your numbers, you can’t effectively set up strategies or action plans to make improvements. It’s imperative that you keep track of the data so you can adapt and pivot strategies for effectiveness.

FINANCIAL METRICS

Financial metrics are the first line of defence and offense for a business owner. Knowing the following numbers are fundamental to running a successful business.

Once you know your financial position you should review monthly or even weekly depending on your industry.

Total revenue

Profit

Cash on hand or cashflow

Debt & debt ratio

Total inventory Total expenses

Profit margin

Equity

Account receivables & payables

Net Income

WHAT GETS MEASURED GETS MANAGED

Peter Drucker said “what gets measured gets managed” and this is true in most cases, therefore choosing the right metrics to measure in your business is important. Measure the areas in your business that are meaningful to what you are trying to achieve, that could be Project Costs, A,B or C Grade Customers, Cost of Sales, etc.

As a Business Coach, when I start working with a new client, the first things I look at are the numbers, typically:

What is the Primary Objective of your Business?

Who is a good customer? How do you “Win & Keep” customers? When does this happen?

If you can’t answer these questions without hesitation, you have work to do!

For help setting up your numbers email or text “numbers” to phillipnicholls@actioncoach.com or mobile 07947 718594

NATURAL THERAPY

I am a meditation teacher and bodyworker serving Herefordshire, Worcestershire and beyond. I have studied the healing arts since 2004 and practised since 2016.

I recovered from serious illnesses myself and have a strong track record in helping people with a wide range of challenges. I am also a horse healer.

Clients have reported improvements in mental illnesses including anxiety and

depression, stress, insomnia, chronic fatigue, pain, injuries, ADHD/Autism and other issues. You are welcome to a consultation to discuss therapy.

My book ‘The Foundations of Self-Healing’ explains the holistic system I invented to regain my health and which I now teach others.