- Hi guys, this is James Sinclair.
This is the James Sinclair YouTube channel,
helping you grow your business
and in this video I'm going to tell you
why things gonna happen to the UK economy
in 12 months time for business owners and entrepreneurs.
Let's go, hey, gang, I'm getting ready to go back
to work like a lot of us and I think the fall
for July is the opening for lots of businesses
and I've heard Rishi Sunak on LBC radio station
this morning, say that the rest of the economy
will be open by the middle of July.
That making this at the end of June 2020,
and I'm sort of predicting what it's gonna look like
in June 2021.
What now I think everyone has a sense
of relaxation around business.
I'll tell you for number one, most staff are furloughed,
so that's cash for staff so that's taken a big chunk
of pressure off, business rates that you don't have
to pay in many industries for the next 12 months,
a big chunk of pressure off.
Banks are being very friendly and helping business owners,
my bank have said you don't have to pay any capital back
on any of your loans until January 2021,
big chunk of pressure off, civil's loans, bounce back loans,
but eventually in 12 months time from right now I think
this stuff is going to look very different.
First of all, those loans that you've got that 12 months,
no repayments back on civils and bounce back loans
that they're going to start hitting,
and that's gonna draw out cash out of businesses.
Those business rates will be coming back
and we would have been used to not paying them
for 12 months, it would have been come a bit,
your staffing costs will be coming back,
but already starting to see the glimmers
of the results of what companies are doing.
Companies are making people redundant.
Travis Perkins are closing star sites down,
British Airways, Virgin, Atlantic
just into shopping centers about to go into administration.
Thousands of jobs going there,
we are going to see some seismic shifts in the economies.
Now why I'm I excited about that for entrepreneurs
and business owners it'd be
if it can be nimble and lean mean.
Fact really machine during these downturns,
you're gonna have a great business for the future
but I think it's dangerous to feel complacent
about having plenty of cash around us right now.
What I've been advising people to make sure
that you're creating cash buffers around you
to ride out any storms.
I think you need to be thinking about
what does your business look like,
can you trim any far?
Is there things that you can be doing right now
to think about what happens if you lose 20, 30%
of your turnover when everything goes back to normal?
If that looks like October this year,
and the government removed all restrictions,
and then people are all thinking,
"Oh, hang on a sec, my mortgage payments are coming
back cause I've taken a three month mortgage holiday."
Two million of households have done that in the UK,
that property represents about 8 million people
in the UK, maybe even 10 million,
that's a big chunk of people.
House processes are resilient at the moment,
they seem to be going up, but what does that look like
in 12 months time?
And I think what is a really smart thing
for business owners to do and this is what I advise everyone
that's a member of my Entrepreneur's University,
which you can try for free by the way for 14 days,
link in the video description or go to my website,
jamessinclair.net.
It's sort of a SWOT analysis on your business
and you can just get a simple piece of A4 paper
and write down what's your strengths,
what's your weaknesses, what's your opportunities
and what's your threats and really look
at those W's and T's.
What's the weaknesses and threats,
what are the opportunities that you're not diving
into grow your business right now?
Well, I think and I keep saying this on all my videos,
am absolutely the muse about the amount of businesses
that are not diving on to online more,
they're doing just enough rather than really making
themselves prominent.
And what I've seen through this pandemic,
the businesses that have pivoted online
to really build great online presences
to bring in online revenue streams,
to do clicking collect order,
get on Amazon, we're doing really well on Amazon
now we've got on Amazon, but it's taken us three years
to get on Amazon but because the rest
of the businesses closed, we dived
in to doing more online sales.
Take yourself that podcast, so that you can get customers
listening to you so that you become the expert
in your industry because here's the thing.
In an economic downturn, which I think is going
to be quite hard in 12 months time,
it's the ultimate expert businesses,
the ones that have got the awards,
the ones that are Google famous,
they're the ones that are going to bring home the bacon
because if a customer's got £100
to spend on a product or service and they're looking at you,
via four or five other competitors,
the ones that have got the best reviews,
the ones that have got the best website,
the ones that have less friction to do with you,
and this is where they get consumers when they're choosing
to buy from you in an economic downturn.
Wherever there's a slight amount of friction,
maybe that's a lack of testimonials,
maybe you're being too fussy on how it is to buy from you.
Maybe you haven't got customer service,
maybe you can even find the phone number
on your website so that people can call you
and just make a call and order and talk to you.
Maybe your offices based abroad,
and that makes a bit of friction
from people being able to buy from you.
All of those things, remove friction,
lubricate the decision for a customer
to make a sale with you.
How do you do that?
Number one, build expertise,
number two, make sure you're Google famous
with loads of testimonials all over the internet.
Make sure you're the business that's found
and make sure it proves that you're an expert.
Don't forget go and win awards as well
because when you win awards, you get great SEO
onto your business, people like you and they're like,
"yeah," they're a multi award winning business.
There's some just tips there for you to grow your business.
Think about what your business looks like in 12 months.
What happens if it gets as tough as I think
it may be by June next year?
But alright now because we've got these comfort blankets
around us fire the government and that's gonna go soon gang.
So start thinking, start planning,
do that SWOT analysis and write it down on paper.
I promise it works.
Let me know what you're doing in your business.
What's the weaknesses and threats that you're thinking?
Hit them in the comments below.
I'll do my very best to answer and I'll see you real soon
in the next video.
I'm James bye bye.
(upbeat music)