Financial institutions expect the impact of the current credit crunch to last for most of the year. And while it’s yet to hurt profits, businesses expect it to do so.
An exchange rate that’s hurting exporters, an expensive and complex corporate tax regime and soaring energy prices are all fuelling uncertainty. Vulnerable sectors include manufacturing, retail, construction, travel and leisure and services – including professional services – but, in truth, nothing is immune. GDP growth, meanwhile, is expected to slow sharply from3.1%in 2007 to 1.8%in 2008 – a prediction that will provide the prime minister with his sternest economic test.
So what should you as business advisers do in what is the gloomiest economic environment we’ve seen for many years. Roll over and wait for it to pass? Switch all your resources into your insolvency practice?
Well, good things come in threes. So prioritise. Some sectors will fare better than others (technology, media and telecoms).Get the basics right in terms of staffing, marketing and execution. And don’t panic. The best business advisers will always find a role –whatever the climate.
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