The Impact of the UK Recession
What is the impact of a recession? This question definitely lingers on the mind of any one whose country is going through a recession. The UK economy has been facing some challenging times in recent years. Since the global financial crisis of 2007-08, the British economy has been on a roller-coaster ride. According to S&P Global Ratings, the UK currently in recession. The World Bank defines a recession as “a period when an economy contracts or . . . experiences at least two quarters of negative growth.” As you are probably aware, this isn’t the first time the UK has faced a recession, with previous examples occurring in the early 1980s and again during the Great Depression of the 1930s.
What Does This Mean for the UK Economy?
In many respects, a recession isn’t a positive or desirable thing for an economy. It results in a reduction in consumer confidence and a drop in the amount of money spent. A recession can also increase the debt that businesses and consumers are in. However, recessions are very useful because they allow the economy to re-balance. During economic growth, retail, construction, and property sectors tend to grow faster than other industries. A recession allows other industries to become more competitive. It also allows industries that may have previously been overlooked to grow and flourish. While it is never ideal to be in a recession, some positives come from it, such as increased competition between industries and a focus on innovation.
Why is the UK in a Recession?
There are several reasons why the UK economy has been in a recession since the 21st century. Various factors have contributed to the recession, including a drop in the value of sterling and increasing amounts of debt. There has been an increase in workers being paid less than the living wage and decrease in real wage growth. We have seen a reduction in productivity in recent years. Also, an increase in the amount of time it takes to do things. All these factors mentioned, have either directly or indirectly caused the recession.
3 Strategies to Survive The Impact of a Recession in the UK
There are a variety of ways that you can tackle a recession and survive. Before a recession occurs, you should prepare your business so it can survive the impact of a recession. There are a variety of ways that you can tackle a recession and survive. We have compiled a list of strategies that you can use to survive a recession.
Change Your Marketing Strategy to Survive the Impact of a Recession
While you could try your best to ride out the impact of a recession, focusing on surviving and keeping your head above water, there is another approach that you can take – thrive. You can use a recession as an opportunity to reevaluate your marketing strategy and take a more long-term view of the direction of your business. You can transition your marketing strategy from short-term survival to long-term growth. When focusing on short-term survival tactics, such as discounting and special offers, you can increase sales in the short term, but you are sacrificing your long-term growth potential. By transitioning from short-term survival tactics to long-term growth strategies, you can boost your sales in the long term.
Automate Tasks to Save Time and Money
There are various ways you can automate your business, particularly time-consuming and expensive tasks. For example, if you use email marketing, you can automate this process using an autoresponder. Autoresponders are computer programs that send out pre-determined emails automatically at set intervals. They are a great way to communicate with your customers without being present 24/7. By automating tasks in your business, such as sending emails, you can reduce the amount of time and money you spend on certain aspects of your business. You can also consider automating other aspects of your business to reduce costs and use your employees’ time in the best way possible.
Don’t Be Afraid to Shake Things Up
In a recession, there is a lot of pressure to perform and succeed, and you may think you need to make major adjustments. However, rather than trying to make small changes and alterations, shake things up and make drastic changes to your business. In a recession, consumers are looking for something different from the businesses around them – shake things up and offer something unique that will set you apart from your competitors. You may also want to consider making big changes to show investors how serious you are about turning your business around.
A recession will always cause some disruption in your business, but you mustn’t let it take control. You can take steps to protect your business, and if you experience difficulties, you can use these to work your way back to success. Regarding the economy, it’s important to stay on top of any relevant changes and be prepared for anything. With these tips, you’ll be better prepared to survive the impact of a recession and thrive when the economy improves. Click here to download our free playbook.