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Businesses adopt blitz spirit

Posted: 06 May 2009
Estimated Read Time: about 3 minutes

As recessionary pressures continue to bite, a number of business owners are embracing a blitz-type attitude in the face of the economic downturn.

Thirty-six per cent of small business owners are refusing to let the recession get them down, saying it has had no impact on their personal lives, according to new research from independent financier Bibby Financial Services.

The research demonstrates how many British business owners are standing firm in the face of adversity, managing their business as they have always done and ensuring their personal lives do not suffer too much as a result. Forty-nine per cent are refusing to cut out luxuries, such as Blackberries or company cars, which they clearly see as essential; 63 per cent are continuing with holiday plans; 67 per cent are not getting any less sleep; and just 14 per cent are drinking more alcohol.

Says Edward Rimmer, chief executive UK and Ireland for Bibby Financial Services: “Some might consider a Blackberry or company car a luxury, but for many business owners today these are simply essentials which are helping with the day-to-day running of their business. Whereas previously business owners may have been prepared to neglect their personal lives in order to sustain their business, these days they recognise the importance of trying to maintain some sort of work-life balance, instead seeing time away from the business, such as a holiday, as a tool to help them survive.

“However, while it’s good to see business owners remaining positive, they also need to be prudent financially to get through the downturn and not completely throw caution to the wind. With 69 per cent of business owners now scrutinising finances more carefully, it’s clear cash flow remains king.”

All but 15 per cent of business owners polled say they have learned something new from the experience of this recession. Thirty-five per cent have learned to keep a closer eye on cash flow, 18 per cent have learned to plan better for the future and 17 per cent say they have become shrewder.

Says Rimmer: “Given the figures show most business owners are learning and developing new traits and skills from this recession, once current cash flow issues begin to ease we should see the emergence of a new nation of stronger business owners - hopefully ones whose families don’t become too neglected in the process.”

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