This year started slow, seems a while ago now since it started given that we’re nearly half way through, but it got me thinking, why peaks and troughs, feast and famine, you know the phrases. I know the answer to why we had them 6 or 7 years ago. It was my fault. Flat out 100% my fault, it would go in cycles, a little like this:
I’d work hard ON the business, quoting, chasing and doing all the things needed to win work. Then we’d get busier than a one legged man in a kicking contest and I’d get stressed about getting the work out on time so I’d end up working hard IN the business, with the lads on site and sometimes in the workshop, many hands and all that. Then once the jobs would be done, handed over and completed we’d be saying “What’s next”. Thing was there was nothing next, I hadn’t focussed on what was next, I’d do (Excuse my language) a half arsed job of getting the work in, incorrectly pricing, not following up quotes, not selling our services hard enough, so I’d panic and go back into working hard ON the business and so the cycle would continue.
I made a conscious choice in 2020 to always focus on what’s next and despite the monkey brain of worrying about deadlines, always work hard on what’s next.
It was different this year though, I would still be quoting and working hard following up and putting us out there as “very much available for projects”, but I was faced with a brick wall, the quoting I was doing seemed to just be for costing exercises or for jobs way in the future. I was frustrated…. But that wouldn’t help anything so I looked into it. My conclusions were the following:
- A change in NI and Living Wage. This would increase costs for businesses and these businesses were waiting to assess the impact to them before moving forward and committing to any projects. You’ve got to look after number 1 after all.
- Mr Trump was doing his best to upset the trading world. We produce furniture for all manner of companies, some work in the automotive and aerospace sectors. Two fields heavily hit by Trumps Tariffs, so they would scale back and in one case scrap their developments all together.
- Cost of living. Lets face it, it costs a lot of money to live in the UK! The pound just doesn’t go as far as it used to and it doesn’t take an economist to work out why that one effected the start of this year.
- Large project completion. We worked flat out through the end of 2023 and through 2024 to produce and install furniture for 4 large high end care homes. These 4 were for one group, there’s only so many buildings you can build before you have to sit back on your investment and wait for it to pay. So that field practically dried up overnight for us.
- We do a lot for the public sector, Schools and Hospitals are all subject to budgets which need spending, some years they run out early and some years they seem to have some left over at the end and we are working hard to fit stuff before the end of the financial year, this year was the former.
To be honest with you, it was horrible, I was worried, we had similar at the start of 2023 but I could see buildings being built which would have our furniture in it, it was only a matter of time before it all got going again, not this year though. I had to make the decision to put the guys on basic time, something I hated doing and I appreciate their patience, we also monitored all spending. I was concerned, but my analysis suggested a couple of things that offered some positives, the budgets would come again and the changes Mr Starmer was making especially to the NHS would open up some much needed funding which would hopefully come our way. The large projects that we worked on helped to get our name out there and we started to get more enquiries from new potential clients, so with a larger client base we’d have more opportunity for work.
I wanted to write this on the off chance someone going through similar is struggling and is wondering if it will all be ok. Slow doesn’t mean stuck, if you’re good and honest at your job it’ll come. Keep showing up, keep putting one foot in front of the other and it’ll come. Also embrace it, use this time to find new customers, refine your product and analyse! Happy to talk about this with anyone so reach out if you do.
We’re currently doing OK, more would be nice but I’m working on it.
Have a good weekend and as always… Take it easy!
Adam
