3 useful ways you can protect your agency as the UK approaches recession
As an agency owner, you’ll know that building a successful business from the ground up is a hugely rewarding job. From the joy of securing your first big contract to the satisfaction of watching your small team grow, there are many important milestones in your company’s journey.
That’s why, when times are tough, it can be easy to worry about the wellbeing of the business you worked so hard to build.
According to the Guardian, the cost of living crisis could push the UK into a recession in 2022, as people and companies alike reduce their spending, which may have knock-on effects for small businesses. Before you read three ways you can protect your agency, here’s why the UK is heading for a recession.
The rising cost of living could push the UK into a recession in 2022
In the past few weeks, the UK economy has struggled with rising inflation, largely caused by a post-Covid surge in demand and the ongoing war in Ukraine. According to the data from the Office for National Statistics, the Consumer Price Index (CPI) rose to 9.4% in the 12 months to June 2022, the highest level in four decades.
This problem has threatened to push the UK into a financial recession, as the Bank of England (BoE) has predicted sluggish growth until 2025. This looming threat has prompted many people and companies to reduce their spending in order to save money.
As you might imagine, this has had a significant knock-on effect for many small businesses. In fact, according to the Guardian, almost 500,000 of them are at risk of going under in the near future due to the fall in spending.
For owners of small businesses, this announcement was worrying news, and you may be understandably concerned about the prospects of your own agency. So, if you want to protect your company from the effects of a downturn, read on to find out three useful things you can do.
Boosting your efficiency can help your agency to do more with less
If you want your business to thrive even during difficult periods, there are several important steps that you can take.
1. Improve your efficiency
As any good agency owner knows, striving for efficiency is key if you want to stand out among your competitors. And, in times of recession, it is even more important. Doing more with less can help your business to boost output and keep your head above water when times are tough.
One of the easiest ways to make your business more efficient is to automate the less-intensive jobs that take up your employees’ valuable time. For example, roles with a high degree of data input can be made easier by using bots to speed up the work.
Automation can help your agency to do more with less resources and in a shorter space of time. With the rote work taken off their hands, your team can focus on what they do best – thinking creatively and solving problems.
2. Value your staff
When times are tough, many employers feel the need to reduce the size of their team to save money. But while you might be cutting your costs, you’re also reducing your ability to deliver results for your clients.
If you struggle to meet an important deadline, it can seriously affect your professional relationships. In a worst-case scenario, you could suffer serious reputational damage that loses you clients, which is the last thing you need when your company’s future is already uncertain.
Furthermore, cutting perks to save money can result in a higher staff turnover, which would cost you valuable time and money as new employees would need to be found and then trained. This delay could make your business less efficient and so less competitive, at least in the short term.
Instead, it’s important to make sure your team know that you value their contributions to the company. If you want to make sure your employees are happy and motivated, read our previous article to find out what you can do to help them.
3. Seek financial protection
When the future is already uncertain, worries about running into an unforeseen problem are the last thing you need. This is where financial protection can help you.
There are many different types of cover available, and each can benefit you in a different way. For example, if you’re the victim of a ransomware attack then Cyber and Data Insurance can really help.
Having the right type of protection in place can give you greater confidence for the future, knowing that your agency will be able to overcome any obstacles.
Work with a broker can help you to find the cover that’s right for you
While the prospect of a recession can be a scary one, it’s important to remember that it can also offer valuable opportunities for your agency. If other rival companies were to go out of business, you could find new clients and expand your market share.
If you want to be able to focus on growing your agency, and not have to worry about unexpected problems arising, having the right kind of protection can be invaluable. This is where seeking professional advice can help you.
For example, we can scour the market on your behalf to find the cover that’s right for your needs. We can also help to keep your premiums to a minimum, ensuring that you don’t pay any more than you have to for protection.
Knowing that you’ve got the right cover in place can give you invaluable peace of mind, enabling you to focus on growing your company and taking advantage of opportunities.
Get in touch
If you want to know more about how protection can make your company more financially resilient, we can help. To find out more, email creative@eggarforrester.com or use our contact form to request a callback from our team.
