It was finally announced that the UK is officially in a recession now. This came as no surprise at all as the pandemic and resulting lockdown had a huge effect on many industries and we all expected the announcement. But house prices are still high, and some industries are thriving, so it isn’t all doom and gloom, certainly not yet.
Who are the winners?
IT was one of the winners of the lockdown as so many people needed software and hardware in order to work from home and now restaurant and bars are open, they need apps to take orders from the table. Sales of laptops and office chairs went crazy and other items like clippers went out of stock everywhere when people deicide to do home haircuts. It was a strange time. But some of these needs will be continuing as lots of businesses are keeping people working remotely for the foreseeable future.
And the losers
Of course, the biggest losers were automotive and events, plus hospitality and the airlines, these sectors are all struggling as we are not buying cars, travelling abroad and we can’t go to events anymore. And the uncertainty of when we will be able to is what really makes it devastating to those industries.
Furlough is ending next month, and more redundancies are expected to follow. People without jobs spend a lot less and ultimately lose their houses if they can’t pay the mortgage. This all has a huge effect on the economy as a whole and let’s not even mention the astronomical debt the UK now has.
Can we do anything?
But individually what can we do about all that? We can’t stop the virus and we can’t make people spend what they don’t have. Worrying yourself into the ground won’t help anyone! However, as small businesses we can do our bit.
If things are going okay for you, keep spending. Outsource work and keep money moving around, it all helps create those little green shoots we need to get out of this. Please don’t feel guilty if you are doing well either, that is the way of the world. Instead try and give something back and give value with free advice or services to those most in need. This is not only an immense help but also brilliant for your brand.
If things are tricky and you are struggling, then try and think of new services that will be needed or change your target audience. And do ask for help. Sometimes you can’t see the wood for the trees and other people can come up with great ideas or solutions. Forums like this one or a decent business Facebook group or LinkedIn are all good starting points.
But above all try and stay positive. We have weathered recessions before, and we will again. It will get worse before it gets better but keep going and one day 2020 will just be the year we cannot quite believe ever happened!
Do you have any top tips for getting through a recession?