I’m no pundit, but all my senses are telling me that 2010 could be an awesome year for ambitious, well run businesses. As someone told me earlier this week, luck happens when opportunity and preparedness collide. So, as the well known motto goes; “Be prepared”!
Here are five reasons for my enthusiasm:
- The world economy is recovering. The UK may be behind the curve but that won’t mean a lack of opportunities. At least some of these will come at the expense of less well run, failing businesses, where market share or other assets will be up for grabs.
- Entrepreneurs are resilient and individual capitalism is the future. M&A activity will return as the realisation dawns that there may never be a better time to acquire good businesses at realistic prices.
- On the other side of the coin, owners who have been unwilling or unable to sell their businesses will reappear. Death, divorce and retirement are a constant and don’t disappear in recessions – expect an increase in the number of sellers as the economy plays catch up.
- There will be more help for entrepreneurial businesses and access to funding will improve. Expect a mixture of helpful government policy, increased bank lending, more business angel activity and a resurgence in earlier stage and mid-market private equity.
- And finally, we are bored with recession! It’s not a very scientific observation, but the UK has always shown its mettle in times of stress, with ingenuity and collaboration coming to the fore. It will be no different this time, with the entrepreneurs and SMEs that employ the vast majority of our population leading us out.