Actively searching for success

Aug 5 2008 by jez Davison, Evening Gazette

TEESSIDE’S small firms say aggressive marketing campaigns can beat the economic blues, as new data revealed crumbling confidence among North-east businesses.

Bank of Scotland business banking’s Confidence Index said more than six in ten (62%) of the region’s small business owners are expecting either flat or negative growth during the remainder of 2008.

The index said small business confidence had slumped for the fifth successive quarter and by more than one third since May last year.

But small firms on Teesside say they are actively seeking - and winning - new business to stave off the worst effects of the economic downturn.

Lisa Higgins, partner of Middlesbrough-based We Do Marketing, says: “We are on course to more than double our turnover this year - and that’s without taking on any extra work.

“In an economic downturn, the best companies do not reduce staff numbers or slash their advertising budgets. They are getting out there and winning more work.”

Meanwhile Middlesbrough man Alan Callaghan, founder of taxi firm Al Cal Cars, said clients were finding group bookings a cheaper alternative to taking the train.

He said: “By operating eight-seater vehicles the price dilutes down. I’m fairly optimistic about the future.

“Whenever I’ve seen business disappear I’ve always managed to replace it with something else.”

Alan is hoping that existing contracts with local schools will be renewed but he’s not sitting around waiting for the worst to happen.

Recently he won work from social services and is seeking further contracts from other sources before the summer is out.

The index said 82% of the region’s small business owners expect general economic conditions to worsen during the next 12 months – more than double the number expressing a pessimistic outlook this time last year.

Given the uncertainty surrounding current market conditions, nearly seven in ten (68%) believe it will become more difficult to run their business over the coming year.

The index provides an overall measure of confidence among Britain’s SMEs by tracking the attitudes of 1,000 owners or senior executives of firms with an annual turnover of up to £1m.

It measures small business optimism across five key economic indicators: general economic conditions, customer demand, recruitment intentions, predicted turnover growth and anticipated ease of running a business.