It might be autumn, but for many businesses it could be the season of growth

Over three difficult years, many businesses in our region and in the UK have demonstrated extraordinary resilience. Reinventing themselves, pivoting, diversifying, they have lived to fight another day.

But nobody starts a business to stand still – so when the battened-down hatches are open again, businesses must start to refocus on growth, not just on subsistence. And the signals from UK business in this respect are actually extremely encouraging.

For although autumn may be upon us – the season of gentle dieback – for many small and medium enterprises (SMEs), this time of year is turning out to be distinctly growth-focused – more spring than autumn, in fact! So, where are these figures coming from – and what story do they tell about growth aspirations and how businesses are preparing for them?

Eyeing growth across many sectors

One piece of recent research from business finance provider Novuna tells the story particularly clearly. It shows that an estimated seven in 10 UK small firms are making growth plans, and in some sectors growth planning in the SME space has hit a three-year high.

It’s unquestionably optimistic, and after the challenges of those past three years – and no shortage of hurdles in the here and now – it’s a message businesses in our county will welcome.

It’s also inherently credible, because the growth intentions are not down to one or two outliers skewing the picture – they span many different verticals.

So, we’re seeing many more firms planning growth this year compared to Q1 2021 across sectors including manufacturing, construction, agriculture, hospitality, IT and telecoms services, and finance and accounting firms. That’s a pretty broad mix.

A measurable and meaningful change

And when we say ‘many more’, the increases over the last report are significant; 18% in construction, for example, 10% in agriculture, and almost 9% on average across all the verticals cited above.

It’s also interesting that the growth aspirations continue even with the prospect of a business rate cap ‘unfreeze’ in the coming budget – so it’s definitely a resilient trend.

In fact, there can be no doubt that, in many ways, SMEs have turned a corner; no longer focused on survival, they’re looking to growth as a real and viable option for the near-term.

But some topics are hotter than others when it comes to preparing for growth – so here’s what businesses are telling us their priorities are.

How to get growth-ready (and why)

The research found that those SMEs planning for growth were focused on key priorities including cost control and improving cash flow.

This, of course, makes perfect sense. Growth costs money, so getting what’s owed to you into the bank more quickly, and minimising its erosion by costs, are both indispensable objectives.

And growth pays dividends. It’s not just a measure of size and output – growth has the potential to increase your resources and stock, generate more sales and profits, reach new customers or markets, reinvest more money back into your business, and influence market price.

Another key priority that businesses cited for their growth plans was investment and funding – both sourcing more of it, and reassessing current funding to potentially find better deals and more effective arrangements.

It’s hard to overemphasise the importance of getting this right. It has been estimated that running out of cash or failing to raise new capital is responsible for about 38% of start-up business failures, for example, so trying to fund growth through existing cash flow is almost certainly a bad idea.

However, investment and funding can also be one of the most complex areas of growth preparation to navigate. Equity funding, debt and loans, grants and matched funding options are all potentially part of the mix.

Plus, there’s a plethora of individuals and organisations through which the funding can be made available – everything from local authorities and Government agencies, to lenders, to angel investors and venture capitalists, leaving businesses often bewildered.

It’s absolutely vital to know what’s available versus what’s realistic, in order to cut through the noise – and to get help in applying for it.

How can we help?

Going for growth, especially when times are still somewhat uncertain, can be a slightly scary prospect, but with the right support and connections behind you, you’ll navigate it far more effectively.

At Bedfordshire Chamber of Commerce, we’ve got your growth aspirations covered at every turn.

Need pre-growth help with improving cash flow or managing costs? Our members benefit from online learning resources, courses, webinars, and preferential access to business finance experts in our community, through our Member2Member programme.

Investment and funding are a particular Beds Chamber specialism. Our online Finance Finder platform enables Chamber members to gain fast, easy access to all funding options potentially open to them, across loans, equity, and grants – whilst also simplifying and accelerating the application process.

But whilst you’re preparing for growth, you do of course have to carry on with business as usual – and we’re also here to help you with the bread-and-butter activity of building new relationships, prospecting for new leads, and getting new deals in through the door.

Th rough our own and our partners’ regular networking events, and targeted sales engagements like our Meet the Buyer programme, we connect you to opportunities to help keep your pipeline healthy, at the same time as growth is on the horizon.

For more information on how to become a member, visit www.chamber-business.com or call our friendly team on 01582 522448.