Growth in testing times (From The Argus)

Growth in testing times

1:40pm Wednesday 12th November 2008 in Search

As 2008 draws to a close, the financial outlook for the coming year looks bleak. But some business owners are going into 2009 with cautious optimism.

Here Emily-Ann Elliott speaks to three companies about their plans to tackle the credit crunch.

Neil Purssey, managing director of fire safety firm Fireco, plans to spend more next year, rather than cut back.

Mr Purssey, who set up his company 12 years ago, employs 50 members of staff.

In June this year, the company moved to bigger premises in Davigdor Road, Hove, and has also increased the amount of money it spends on marketing.

Mr Purssey said: “At the moment the credit crunch is not affecting us and we are going to be spending more next year because we are looking to buy another company. It’s the Keynesian theory of keeping the market going.

“What companies can save in cutbacks is not going to save them in the end so we might as well spend, spend, spend to try to keep things moving.”

The company also offered a 3.5% discount to customers in August, to offset the rise in inflation. It then encouraged its customers to pass the discount on to their own customers so everyone could benefit.

Staff at the company also feel relatively safe in their jobs.

Mr Purssey said: “We can’t guarantee anything but we have reassured our staff that we will keep going. People create recessions and it is people who talk themselves into recession.

“You just have to keep going, otherwise it is all doom and gloom.”

Simon Royston has only been running his business, Red Flag Recruitment, for a year but the managing director says he is excited about the coming 12 months.

The company, based in North Road, Brighton, employs three people and was named runner-up in this year’s Brighton and Hove Business Awards for business growth, after achieving a turnover of more than £500,000 in only nine months.

Mr Royston said: “Recruitment is notorious for being at the coal face during a recession.

“But the advantages are that we can see the signs coming a lot sooner than many other industries.”

He added that the company is looking ahead to what can be done to carry it through the difficult times.

He said: “We pay good attention to our customers and take care of them.

“In terms of business growth, we need to look outside of the box at industries that won’t be affected by the recession.

“Also, especially now, it should never just be about trying to get the best possible deal for Red Flag.

“It should be a win-win situation for us and the company we are working for.

“It is not about charging big fees, it is about charging reasonable fees so that clients will come back again and again.”

Although Mr Royston is hoping the company will not have to make cutbacks, he said Red Flag could reduce certain overheads if it needed to.

He added: “It is also about being pro-active in new business ventures.

“I am confident about the next year, although there are no guarantees – if one of our big clients goes under, we could be in trouble.

“But all we can do is put the feelers out and find new business to spread the risk.

“The next 12 months is going to be a tough time but I am ready for the challenge.”

Helena Hudson has just opened a new café in her chain, The Real Eating Company.

The new establishment in Bournemouth is an addition to her restaurants in Hove and Lewes, and a café in Horsham.

Ms Hudson, who employs 38 members of staff, set up the company five years ago and is not concerned about starting a new venture in the current climate.

She said: “Obviously, you reassess what you are doing but there are certain areas we still feel we can do very well in.

“During September and October our takings were actually up on last year.

“However, we have noticed some of our regular customers are eating out less than they normally would. Everyone has felt what is going on to some extent.

“But what we have focused on is trying to give the same value to our customers that we always have. Suppliers’ food and drink costs have gone up and we have had to work hard behind the scenes with them to make sure we do not pass those extra costs on to our customers.

“Everyone is watching what they spend and the last thing we want to do is alienate our customers by putting our prices up.”

As a result, The Real Eating Company has also adapted its menus and run various promotions. Ms Hudson said: “We are having to do lots of different things. It is ongoing andyou can’t stand still.

“But I’m positive about the next year.

Even though it is going to be tough, there are always opportunities so I am looking at it from that point of view.

“I haven’t made any redundancies but we have gone through lots of house-keeping exercises, looking at things methodically to see where we can make savings.

“We are in a relatively strong position, although that is not something we take for granted. It is something we have worked hard to achieve and it seems to be paying off at the moment.

“I am focusing on making the business as strong as it possibly can be for next year and I am certainly planning to grow.”

Ms Hudson believes smaller businesses should be offered help by local authorities.

She said: “I think they could help small businesses, particularly where you have got lots of individual one-site businesses whose owners have been running them for years and have ploughed everything into it.

“It is very difficult for them.

“If they gave a business rate holiday or put some money into promotional events to get people to go out shopping, these things would help to make a difference when things are hard.”

What are you doing to ensure your company survives the coming year? Tell us below.