Long established chartered accountants and business advisers Chantrey Vellacott has revealed the findings of its first Owner Managed Business barometer report.
Business owners and managers are optimistic about hitting revenue and profit targets in 2014, according to the findings of the firm, which has offices across the Midlands, London, South East and Thames Valley.
The report found that 78 per cent of Owner Managed Businesses (OMBs) across the country are very confident about hitting revenue targets, while 68 per cent are confident about hitting profit targets for the full year.
In a further show of confidence in the economy, more than half of businesses (52 per cent) expect their products or service offer to increase in 2014, with 51 per cent also expecting to add to their headcounts this year.
In order to drive growth, two thirds of OMBs (66 per cent) say they are relying on refreshing existing products and services, while 53 per cent plan to launch new ones.
Mike Tovey, managing partner at Chantrey Vellacott, said the findings offered a positive outlook for the year ahead.
“Owner Managed Businesses that have survived the downturn have done so by cutting costs, evolving their product and service offerings and being focused on the most profitable parts of their business,” he said.
“Businesses have emerged leaner, often with cash in hand to spend in new investment strategies, and for some, the slowdown in business over the last few years has encouraged creative thinking – a breathing space to consider new ways of doing business or new product potential.”
Chantrey Vellacott’s report also looked at OMBs’ investment strategies, and delved into what businesses feel are their biggest barriers.
Sales and marketing was found to be the top investment priority (54 per cent), followed by training and improving the quality of staff (38 per cent) and bringing in additional staff (37 per cent).
Encouragingly, 76 per cent of OMBs revealed they expect to perform better in 2014 than last year, but there are however reasons to be cautious with 40 per cent of businesses identifying difficulties sourcing skilled or experienced labour as the biggest challenge.
Maintaining market share (31 per cent) and weak consumer demand (28 per cent) are also anticipated as major hurdles.
Tovey added: “We’re encouraged that the outlook for businesses appears to be brightening with firms looking to invest in additional staff and training. It will be interesting to see how rapidly wages rise, as many OMBs expect them to, in response to economic growth, talent shortages and rising employee expectations.
“It is also encouraging, that despite the public debate over business finance, relatively few OMBs in our survey express concern – yet – about their ability to access finance.
“This may of course change as their demands for working capital increases and firms will need to review their funding options carefully to make sure they can take advantage of growth opportunities, otherwise better funded rivals may steal a march.”
For full findings from the OMB report go to http://www.cvdfk.com/sectors/thinking-forward-in-2014/.