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Small business in London is still looking to grow and to thrive, even though the recession has hit the city harder than anywhere else in the UK.

According to Business Link, which surveyed over 3,000 small businesses in London, 84% of small business owners are planning on expanding and growing their business over the coming year. If you are planning on growing or expanding, you need to make sure you have the finances to meet your needs and are your assets and your debts in order? Can you even afford the extra costs?

Maintaining and generating sales was identified as the single biggest challenge facing all businesses. However, three quarters of those surveyed felt good about their business over the next twelve months. Of those who are planning to grow, most planned to diversify their business operation.

Patrick Elliott, chief executive of Business Link in London, says: “These results are an encouraging sign in these turbulent times – but they don’t come as a surprise to us. We regularly survey our clients on how they’re managing through the recession and we’re seeing a clear trend emerge of a sector that is refusing to get bogged down in the doom and gloom.

"But what’s telling from this index is that this confidence is across the board – many entrepreneurs across regional, industry, and demographic groups are responding to the recession by aggressively seeking out new market opportunities.”

There are still problems though – nearly two thirds of entrepreneurs surveyed said that the recession is still affecting their business, with 39% say the recession has significantly impacted overall budgets and expenditure. The most important thing for a small business is cash flow – if your debts are greater than your profits then you need to reevaluate your business and your plans.

Talk to an adviser about how your business can move forward. Credit is hard to find for businesses right now, but there are some signs of improvement – the only way you will be able to grow and push on through the recession is by carefully managing all your finances.

SOURCE: Business Link, 24/07/09

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