New Year Resolutions

As we wave goodbye to 2007 I wonder what it was like for you? Running your own business is never easy, but whoa, that was a challenging one! If we weren't wringing our hands at the inept Chancellor of the Exchequer's Capital Gains disaster then we were wringing our hands at the inept Chancellor of the Exchequer's handling of the Northern Rock debacle (is there a theme here?).

But anyway, another year is in the bag and I'm sure that there are bank managers throughout the land eagerly awaiting the year end numbers for retailers who rely on fourth quarter earnings to survive.

With talk of a credit crunch intensifying as the summer turned into autumn I think all of us involved in business became more nervous. If you read the papers then there was no doubt that we were all going to hell in a handbag. But as with everything in life it didn't quite turn out like that. Yes, borrowing did become tighter and yes, borrowing did become more expensive but business continued. Why? because it is the nature of the business owner to get on with it when times get harder.

While there are certainly problems ahead and talk of a recession grows daily there should surely be signs of optimism too. Downturns create opportunity and British business owners are good at seizing these opportunities.

So, for the New Year and what it is likely to bring.

While the derivatives markets and the fancy boys in the investment banks work out the mess that they created and figure out who owes who what, we predict that UK business will to a large extent proceed as normal. The Central Banks will be forced to keep interest rates low and that should stave off a full blown residential property crash. With this intervantion from the Central Banks now assured it looks like the stock market will also avoid a long term crash and instead provide another year of sideways movement.

More of the same in other words.

But British business is resilient and the good news is that for switched on owners it will not be a year without rewards. Looking for creative ways to finance growth and manage cash flow will be the keys to a dynamic 2008.

Happy New Year!