A view on business in 2021

2020 has clearly brought major challenges in many areas not least of which is the economy which was described by a number of leading economists recently as ‘suffering an economic derailment’ which in true British style was perhaps somewhat of an understatement!

As we near the end of the calendar year and face yet more uncertainty, it is time not only to think of some positives from 2020 (yes there have been some!) and look forward to the opportunities in the year ahead.

What appears clear is that 2021 is the year of the entrepreneur. For some it will be a rewarding process and a return to growth and for others the start of a new business.

Some of the lessons learned in 2020 have been the importance of improving the efficiency of your organisation and bringing ever increasing focus to the seven pillars of building a business including Strategy & Leadership, Marketing, Sales, Operations, Team, Technology and Financial & Legal. Those businesses which survive the current crisis and move into next year will be truly innovative taking the approach of embracing change, not fearing it.

What has been acutely clear to us over the pandemic as business advisors, is that leadership is alive and well and that there have been some incredible examples of great leadership from businesses, both large and small. This is evidenced in our recent report on SMEs in the Thames Valley.

We’ve seen it as a time when digital transformation has been at its peak and will undoubtedly continue. It has been said by some that the pandemic could prove to be a ‘success accelerator’ which might seem to some as an oxymoron but actually what has happened is people have taken a much harder look at their business, drilling into reasons for its success and failures and putting those lessons to good use as they forge ahead into 2021.

What is also very clear is that entrepreneurs will not wait for the pandemic to end before taking action. Indeed entrepreneurs generally face periods of huge uncertainty with increased enthusiasm for the way ahead. We have seen this manifest itself in at least four periods of major financial uncertainty over the last thirty years where the impact of terrorist atrocities, property crashes and other potential economic disasters have been met with defiance and positivity.

It also appears to us that there may well be a remodelling of businesses to somewhat more of a paternalistic capitalism bearing in mind the importance for us all to think of others and to help where we can to rebuild and reshape our communities. Of course profit and cash are fundamental to this process.

The March 2021 budget will be critical in terms of showing us the path to repairing our economy and in that respect the Government and in particular Rishi Sunak, the Chancellor, has a major part to play. From our perspective, it seems that this will be a make or break time for our current Chancellor and we sincerely hope that he continues to show his intention to be awake to all ideas rom whatever source that may benefit our country and our businesses in the future.

So as we say farewell to 2020, we face 2021 with hope and courage whilst remaining optimistic for a bright future for businesses and the communities which they serve. We wish you all a healthy and successful year ahead.