When your business is dying & you don't realise.

It's a tough commercial environment out there and it's not going to get much better any time soon. Chaos is our normality and companies must accept this and adapt to it especially as there is evidence that more Black Swan scenarios may appear vis an expansion in Middle East conflict and US China trade war if Trump is re elected.

It's big boy pant time for CEO's, senior leadership and company owners. For more than a few companies it's time to bring out the commercial defibrillator and shock your business back into life. There is only so long companies can live without the oxygen provided by 'strategic direction' and decisive well informed decision making.

Company insolvencies in 2024 are 18% higher than in 2023 and up 52% in 24 months.

How did we get here.

The impact of the 2008 financial crash still affects the UK. Credit became almost impossible to secure and growth was stunted leaving a lasting legacy. Brexit was an immensely stupid idea, promoted by fraudsters (with an agenda) to the gullible, who were too lazy to fact check and many too poorly educated or culturally entrenched to want to understand. That it was implemented by morons only made the impact even worse. Throw in Covid coupled with a complete void of moral political leadership and we have the economic shit show that was 2020 - 2023.

Few seemed to care or understand how impacts on the economy would lead to the failure or exit of fantastic companies from the UK and fail & exit they did.

Covid saw the demise of Arcadia (retail Topshop, Dorothy Perkins, Burton and Miss Selfridge). Debenhams, Mothercare, Victorias Secret. In total its estimated that over 8000 retailers or retail supply chain companies failed across the UK.

Brexit saw over 500 financial & manufacturing companies leave the UK for the EU and a hit of £140bn to the UK economy.

Cadbury moved factory to Poland with an EU grant.

Ford Transit moved to Turkey with EU grant.

Jaguar Land Rover has a new plant in Slovakia with EU grant.

Peugeot moved production to Slovakia with an EU grant.

British Army's new Ajax fighting vehicles are to be built in SPAIN using EU steel with EU grant assistance.

Gillette gone to eastern Europe with EU grant.

Texas Instruments Greenock gone to Germany with EU grant.

Indesit exited UK with EU grant.

Hoover & Candy moved out of UK to Czech Republic with EU backing.

All of the studies carried out about Brexit came to the same conclusion :- Brexit is still having a bigger impact on UK companies than the war in Ukraine (76%), rising energy costs (71%) and COVID-19 (59%).

80% of UK businesses say that Black Swan events such as Brexit, COVID-19 the War in Ukraine & The American political situation have “left us needing life support”.

What Now !

There are many ways companies die & past success is no guarantee of future success.

Leadership paralysis, lack of customer acquisition and poor customer care are the leading causes of company failure beyond the obvious of having product that the market doesn't need want or value or has fallen behind a competitor.

The simple premiss that affects all companies is that your competitors will exploit your weakness. Your missed opportunity only serves to amplify their opportunity. Your indecision fuels their decision.

In this chaotic economic environment 'Analysis Paralysis' is a current issue in leadership. Decision making in many companies hasn't kept pace with evolving customer values. This results in a lack of sales traction leading to decisions having to be reevaluated. This breeds confusion. A dangerous place to be yet a place where many companies find themself in.

The UK doesn't have the American 'Fail fast' mindset. Companies in the UK can be 'submarine companies' - underwater but still breathing, clinging to outdated assumptions hoping the market comes back to them. Their fate is decided by the accuracy of their decision making.

Know your customer. Have Clarity.

UK companies (compared to other economies) has an appalling understanding of customer's needs and wants by virtue of only 6% of SME's & Corporates having an up to date strategy that is also being competently implemented.

The most important aspect for any company is customer acquisition and in fluid market a decision made 2 quarters ago may be outdated by the time its actually implemented if you are not on top of what your customers need (or in marketing terms - shaping their decision making in your favour)

Keeping customers you already have is fundamental, yet you arguably learn more from customers who are disenfranchised, have been treated badly or who have been ignored. They have the most useful data and worse can cause the most damage.

Customers who love companies, who have brand or product or other forms of loyalty do not overtly express their feelings. UK B2B & B2C culture is inherently conservative and telling your friends how good a product is a short lived conversation. Existing customers are your free sales team. let them sell your company by virtue of them consuming your product be that a service or product. How you engage with your customer via how you articulate to your market is complex and needs to be done well so they retain a reason to continue to consume.

Customers who have been disenfranchised, or treated badly be that though poor experience, negligence and/or poor customer care can injure and kill companies. The ability to reach a global audience via social media or via companies such as Trust Pilot means negativity is spread alarming fast and wide.

Losing customers is bad but an inevitability as few stay loyal forever as their needs and tastes change. Losing a customer who you serviced badly and/or where you failed to recognise and address, is a sign of a deeper issue around culture management failure.

You must assume your competitors are improving and act accordingly. Hindsight post insolvency is a pointless and probably chastening experience. It's time to act.

Clarity with Genoa Black

We never know more about our clients companies than our clients do but we know that a strategy or marketing activity that addresses your market, its capacity your competitor, and your customers will deliver guidance to overcome paralysis and lead to growth in what ever way you define or wish for growth.

At Genoa Black we help our clients de-risk decision making. We advocate that answers lie in the data and research informs strategic direction which is then implemented across multiple channels.

We have advised over 900 companies to-date and our track record in delivering growth is defined by the impact of our advice on our clients.

With 80% of our new business coming from referrals this is testament to the impact we deliver.

Alan Kinloch.