Deciding where to set up your business hub is an important decision. It needs to be somewhere where you know your client base resides while also keeping inside your budget, with good transport links for employees.
Client base, particularly, is very important, especially if you are setting up a b2b company that relies on existing customers to survive. Your chosen hub needs to have the potential for a successful loyalty programme with clients who have a need to buy from your business even when customer spending is down – click here for more information on how to achieve this.
As well as that, however, it needs to be in an area that is notoriously strong for business.
It is no secret that the UK is currently struggling – along with the rest of the world – with its financial market. For this reason, some areas that were previously good for business are beginning to struggle.
Therefore, if you are looking at Yorkshire as a potential home for your new business, there are certain things you have to be aware of. Recently, the restructuring trade body, R3, investigated the insolvency-related activity at the beginning of 2023. This gives a good idea of where businesses in Yorkshire are standing at the moment and whether your own business would thrive or flounder:
The Full Picture
The full picture of Yorkshire’s insolvency – as researched by R3 – is undeniably strong. According to the research, only 207 businesses experienced insolvency activities in January 2023 – including liquidation, creditor meetings and administrator appointments – which is a 20% dip since December 2022, when 259 businesses experienced insolvency issues.
In fact, R3’s analysis found that there was a 34% increase in business start-ups, with the number rising from 3,295 in December 2022 to 4,414 in January 2023. There was also a fall in businesses that have had to delay their payments, falling from 47,550 to 47,021.
In the midst of inflation dangers – which have included higher energy costs and falling customer spend – these figures are certainly encouraging and should certainly give your business the incentive to consider Yorkshire as a place to set up your business before 2023 truly gets going.
Is Yorkshire The Right Place For Your Business?
This is not to say, however, that Yorkshire is in the clear. Although it is reassuring that insolvency-related activity is steady, many businesses are still struggling, and – with government assistance on energy costs set to be withdrawn in April 2023 – the future is likely to involve more insolvency issues.
For your business, then, it is important not to take the foot off the accelerator. As mentioned previously, your accumulation of clients is something that you can control, so you need to put as much effort as possible into marketing to these clients and ensuring they have a strong incentive to keep doing business with you. You also need to work out how to efficiently examine your budget on a regular basis, ensuring that you do not fall into any potholes that you should have been aware of. R3 has given a positive illustration of how businesses can succeed in the current climate, but it is still up to the businesses themselves to ensure that they put themselves on the right road and do everything they can to thrive.