Recovery is the new 'r' word, but are you positioned to take advantage?
Opportunities abound in any market situation, but the key to making money in any market is to position your company to take advantage of the opportunities that present themselves.
As the Government announces a 0.2% growth in GDP between January and March, it seems we're on the slow road to recovery. And, in an interview last week, Sir Terry Leahy (boss of Tesco) said he believed we were in recovery - so it must be true. But which industries are thriving - and where is the money being made?
- Champagne sales are up, as announced in a report this week fron Nielsen. Whilst this is great news, it's thought to be based on price cuts, as the number of bottles sold is slightly down.
- The financial and business service sectors grew the most in the last quarter - up 0.6%, whilst retail and hospitality fell by 0.7% - probably due to the snow we experienced.
- Manufacturing has seen it's first growth in many years, which will be a welcome relief to all in that industry.
- Next and John Lewis recently posted increases in profits, despite falling high street sales. This seems to signify a shift in consumer spending towards high quality, value for money items that will last longer.
- Carphone Warehouse this week increased their profit forecast again - the third time in six months - and are now forecasting £47m in full-year profits. They are putting this down to smartphone sales, cost cutting exercises and the growth of their US business. (As a result, their shares rose by 4%.)
- Family-based businesses also seem to be thriving in the current economy; fuelled by the lack of trust for large organisations
- Fair-trade is also seeing a boost; ahead of organic sales. Possibly because fair-trade impacts a seller in a foreign country whereas organic sales may be seen as slightly more selfish.
These trends pose many opportunities. Are there areas you could use within your business to take advantage of the opportunities to come?
Remember to look up from your business every once in a while - you need to know what's happening in the marketplace, so you can spot money-making opportunities and protect yourself from competitive threats. Recovery is also a term used in first aid - we put people in the recovery position when they are breathing - but they are still very ill - so approach with caution.
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