Small business owners’ weather financial and meteorological storms.

“I am a small business owner.

Running a small business is tough going at the best of times and can be both challenging and rewarding. However, depending on your sector depends on how outside influences can affect turnover.

Our current economic uncertainty, rising cost of living and energy costs is causing an impact on many businesses.

However, one other outside influence which can affect the turnover of a business is the weather.

Having survived Covid lockdowns, BREXIT and the following political uncertainty many UK businesses are bouncing back and succeeding. Despite rumours of recession and inflation and interest rates being so high; the UK economic landscape is on the surface just about stable.

According to the Office for National Statistics (ONS) the UK GDP grew by 0.3% in January 2023, having fallen by 0.5% in December 2022.

The services sector grew by 0.5% in January 2023, after falling by 0.8% in December 2022, with the largest contributions to growth in January 2023 coming from education, transport and storage, human health activities, and arts, entertainment and recreation activities, all of which have rebounded after falls in December 2022. (1)

Consumer-facing services grew by 0.3% in January 2023 following a fall of 1.2% in December 2022 and production output fell by 0.3% in January 2023, following growth of 0.3% in December 2022. (1)

However, the construction sector fell by 1.7% in January 2023 after being flat in December 2022. (1)

The construction market falling by 1.7% is a considerable percentage to hit this sector. Despite interest rates putting off some people moving and or first-time buyers, one other reason that construction may have fallen could be due to the weather.

Having spoken to a friend in the private construction industry he has confirmed how much the weather has impacted on his ability to complete certain builds. Any large builds involving foundations and or roofing have had to be postponed due to the impact of the extended cold spells and incredible amount of rainfall we have had in the first quarter of 2023.

Another sector where the weather seems to be having a direct impact on sales and or turnover is in the motorcycle trade. British Dealer News reported a fall across the board for new bike sales for January and February 2023. I have spoken to several main bike dealers, and they too have seen a downward turn in new bike sales. A second-hand bike salesman I have spoken to told me he has had the quietest spring thus far and my own business in motorcycle service and repair has seen a considerably quiet first quarter of 2023.

When the Covid lockdowns were announced none of us were ready. Having to adapt quickly, diversify workloads and change the entire way we ran businesses should have taught us some valuable lessons.

However, having bounced back after Covid could we have foreseen that the weather (clearly a direct climate change indicator) coupled with economic uncertainty could have such an impact on turnovers?

Therefore, what next? What can you do as a small business owner to try and generate more business interest?

Special offers are always a way of grabbing potential clients or customers attention. These must be carefully balanced and not have a negative affect on turnover. The idea of a special offer is to reach people looking for a good deal and then work hard to retain them as an ongoing customer.

Free advice through social media channels and websites is another great way to create engagement. Making sure you only give away enough free information to gain interaction, but not enough that you give away all your trade secrets.

Are your social media channels varied enough or do you rely on the same format to gain interaction? One area I am looking at to create more engagement is to generate more video content which will also include advertising for key services and products.

As a small business owner, I can categorically say that it has been a tough first quarter of 2023.

Having to question your own business, especially one entering its seventh year is a gutting place to be. Furthermore, having to consider finding more part time employment to act as a support to our main business has created a considerable amount of additional stress to an already stressful situation.

Yet the UK has weathered (pardon the pun) many economic storms before and come out triumphant. My Mother who was born at the end of WW2, tells me tales of how the UK literally rebuilt itself from the ruins and became a great nation again. We have weathered economic and political unrest, several recessions and a pandemic and we are still here.

So, if you are a small business owner and you are feeling the pinch right now, believe me when I say you are not alone.

However, never stop believing in what you are doing. You know you are a great business owner, and you know your product and your target audience. Yes, you might have to mix things up a bit, put out an offer or two; but if you lift your head up high your customer base will see you and they will come back to you. I believe in this; I hope you can too”.

Written by Katy-Jane Mason for and on behalf of Virtually Smart Ltd.