Latest GDP figure revealed tomorrow AM

The main challenges being faced by us as a business right now are extremely volatile supply chain prices, wage increases, tax bills going up, R&D tax credits going down, hurting cashflow, and recruitment and retention. The slowdown in housing and care home construction in London and the home counties is also an issue. But despite all this, we are currently winning business at record levels and have finally broken the shackles of the COVID/Ukraine crisis and are planning £2m more in growth next year. The reason for this is commercial construction in London is currently booming: there is a huge push on high spec, sustainable, carbon zero and green designs as office owners compete with each other to attract foreign investors to set up in London. A main contractor, Jarvis, going down in recent weeks costing their supply chain millions, and us £250k, has not helped.

Inflationary pressures continue to compound the volatile nature of the supply chain, and whilst some suppliers are now operating at pre-pandemic levels, others are struggling to fulfil orders due to raw material availability or lack of capacity. This then creates unprecedented demand and potentially leads to yet more price increases. That also impacts cashflow, which is a major challenge for SMEs, and we are now seeing and hearing about businesses that are regularly defaulting on payments, and in some extreme instances even filing for insolvency. Fortunately, both J-Flex and its sister company, Composites Evolution, have managed to successfully navigate the various challenges presented to the manufacturing sector over the past couple of years, with many of the projects that were delayed due to Brexit, Covid, and the Russian invasion of Ukraine now getting the green light and contributing to growth in both businesses.

We are cautiously optimistic about 2023. We have seen a slight increase in sales this year but the average order value is down and people are spending less in these difficult times. We are also having to work harder for sales and spend more on advertising. Uniquely Local Experiences works with other small businesses so we are acutely aware of how hard some small businesses are finding things at the moment. The cost of raw materials to run experiences has increased, whether that be ingredients for cookery courses and food tours or the price of coal, steel and electricity to run a blacksmithing course. This has meant that the price of some of our experiences has had to increase and we are selling these to customers who are already struggling. Having said that, small businesses have proved their resilience over the past few years and we are still hoping to grow this year and to help other small businesses to do the same.

The circular economy of re-use is counter-cyclical to an economic downturn so we have found our own shopping platform is perfectly aligned to help in times of financial uncertainty. We are seeing a steady increase in user volumes as people look for bargains and we have seen an increase of 19% in searches for free items this first quarter. Aggregating all second-hand sites into one place enables people to search all the sites in one go. It highlights local options, which keep postage costs down. Responding to the growing demand for preloved items and the ability to have a side hustle, people are turning to selling, too. Researching the right price and site to sell an item is key to making money quickly. Keeping up with supply-side demand is our current challenge because many new companies are seeking audiences in a crowded sector. The multiplicity of headwinds facing the economy at present are perpetuating the need for people to spend wisely.

A single tin of Heinz Beans now costs £1.40 at Tesco. To many Incredible Kids members who have a young person with additional needs, the recognisable, larger brands are important. Swapping to a supermarket’s own brand simply isn’t an option. We ran a survey with our members to find out how the cost-of-living crisis affected them on a daily basis. One Incredible Kids parent told us, “I have a disabled child with health issues who cannot regulate their temperature. My electricity costs £450 per month so we have all been eating less.” In response, Incredible Kids created a "Hug-in-a-bag". The well-being bags are packed with useful items like blankets, hot water bottles, and little treats. These bags are designed to help families facing a cost of living challenge as well as bring a smile to their faces. By giving out well-being bags to families, the charity is helping to relieve some of the stress and financial pressures that come with caring for a disabled child.

The avoidance of recession and return of confidence were key takeaways from last month's Budget, but the IMF's forecast of UK GDP this week seems to dampen that again. Some sectors face a steeper slope to support and growth. Construction was singled out in the last GDP release but many of our client conversations are based on growth opportunities and the means to do business. Proactive businesses will give themselves a chance to grow and we see that as a continuing theme in 2023.

Businesses are currently under significant pressure to reduce operational costs and are therefore turning to technology to address the challenges they face. As a result, our own services are in great demand at the moment, as we help companies to streamline their processes. There are no end of economic headwinds out there at the moment, most obviously inflation and rising interest rates, but the outlook for our business in 2023 is positive as we work with our customers to deploy technology effectively.

I’m a small business here in the North East, living in what was recently quoted in several press publications, as one of the ‘cheapest’ places to buy a property. All that being said, I’m approaching my third birthday in this business and so far, 2023 is proving to be my best year yet. I believe the increased interest is because I am now in a position to offer a business that involves the beach, a sustainable product and a chance to escape from the pressures of everyday life. My business is also contributing to local tourism, as people are coming to stay in the village or the surrounding areas to experience my sea glass safaris and workshops. It’s a joy to watch it grow and although it was an unexpected business opportunity in the most challenging of circumstances, I’m confident it will continue to grow, and I’m looking at strategies to help me do that.

As a broker specialising In Holiday Let Mortgages, we're the tightrope walkers of British business. With staff to pay we're making constant adjustments. Every step is a balancing act. The current climate, for us, is stable at the moment with plenty of work and enquiries. To move forward, we're focused on marketing, advertising, and good staff. We're also making our process more robust so our customers are looked after as well as possible. Fluctuating interest rates amid speculation about the economy coupled with house price uncertainty remain challenging. Many people want to move or upgrade their homes, yet fear they might get the timing wrong. Those decisions are the stormy winds in our part of the economy. Rates have stabilised and that's good. But a lack of initiatives for first-time buyers doesn't help at all. Ultimately, there are thousands of businesses like ours in the UK, and we all need support and initiatives.

The mortgage and associated property market has largely not seen the fall in interest or prices that many predicted and some still foresee. The volume of transactions may be anecdotally and statistically down as some people have opted to sit on their hands in recent months. However, with the major lenders all now jostling for position and market share via reduction in rates, healthy competition and a more settled landscape can only further entice people back into the property and mortgage markets. The question remains as to whether the supply of housing can come close to matching this demand. As a business, Q1 of 2023 has actually been my best yet despite the challenges of in particular the lack of available housing stock and rates at one point higher than many people could afford. Although inflation and general cost of living concerns are clearly still an ongoing factor, after a rocky few months it does feel like a wave of optimism is building for the summer months ahead.

Small businesses are the backbone of our economy, but rising energy costs and inflation are forcing many to close their doors. It's a tough reality that businesses are facing, and it's high time to take a hard look at how we can support them before it's too late. As someone who works with several businesses, I can say with confidence that every single one of them is feeling the exact same pain right now: cost increases due to inflation. This is putting a strain on budgets and making it harder to achieve growth, or even survive. It's a difficult balancing act to try and maintain quality whilst keeping prices competitive. On the flip side, this is forcing businesses to become more agile and innovative, finding new ways to work and collaborate as well as exploring new markets to diversify their offerings. The global pandemic has shown us just how resilient we can be in the face of adversity and I believe this spirit will continue to drive the country as a whole forward.

Velvet & Rose is optimistically waiting for the change in weather to see how the business will fare this season. We have had a steady start to 2023, having had the best year to date in 2022. Customers have been wary and business has been tough at times mainly driven by a prolonged winter and the cost of living crisis. In the womenswear sector, it is always tough as you buy in lots of stock and have to sell it before you get the next season's drop. However, we have made some changes to the way we buy and we hope that this will pay off this season. Many customers will be going on holiday and attending special events such as weddings and the races so we hope that they will continue to shop with us. It is an important season for us and if we are successful it will set us up for the rest of 2023.

Business appears good so far in 2023 from our litmus test across our clients who are either self-employed traders or who run small to medium-sized businesses. Our challenge at the moment is keeping pace with rate movements and the 2, 3 or 5-year fixed-rate decision. Client activity on the whole is good and better than expected for the first three months of 2023, with no sign on the horizon of things slowing down. If 2023 continues as it is, it will show good results from our perspective.

Though the types of enquiries have shifted and are less predictable now, on the whole we all still have enough to do and are really busy. I see the rest of this year as a bit of a recovery year for those who have been hit by the rate hikes. Hopefully, they are all looking for professional advice regarding their mortgages and hopefully are also getting the service they deserve. As an adviser, you need to advise on as much as you can. Even if you could only save your client £1, do it anyway. Your work now is what will be remembered and will help you in future years.