14/07/2010 09:46:46

Following the difficult times our industry faced over the long months of recession, and despite being told that the worst is over, the mood remains one of caution that will not be discarded lightly. Naturally, few businesses wish to take-on any unnecessary risk, or continue along a course that brought dealers so much grief.

Despite the level of confidence remaining so frail there are still a few outbreaks of optimism where profit opportunities have been identified. Typical of this is where operators who have run commercial vehicles well-past their sell-by dates and are now having to reassess strategies and dip a toe into the marketplace. Such fleets cannot be run-on indefinitely if problems surrounding reliability, running costs and customer perception are to be avoided, yet it will not be either a cheap or easy decision for cash-strapped businesses to take.

If your business has barely scraped through the financial firestorm, why would anyone wish to jeopardise their future prospects by making poor decisions just as we are exiting recession? Yet in past times that is exactly what has happened, when seemingly a rush-of-blood to the head has led small to medium sized concerns to over extend themselves the instant they see any improvement in sales. This can lead quickly to insurmountable cash-flow problems with the bankers swooping-in for the kill just as quickly as they withdrew support when finance was requested.

However, there comes a point when a recessional mindset must give way to a more entrepreneurial outlook, and that time is now upon us. Currently, inertia is the enemy with too many feeling that they cannot see the best way forward, so simply decide to do nothing and maintain the status quo. This is possibly the worst path to follow as, within reason, which direction is taken is less important than the need to make the decision to get things moving. It will prove easier to steer any business back on to a course to success once it has some forward motion.

So, is the UK's economy going to be robust enough to see us safely through the next couple of years? The short answer would appear to be yes, but only just. The going will be rough as our economic cycle is likely to remain out of 'sync' with our European neighbours over the next few years. However, it is still tempting to speculate on just how much progress UK business could have made if it were not hobbled by a mountain of debt that will prevent it from achieving its full potential. One way or another, decision time is here and the quality of any decision taken now will determine the outcome for several years ahead. Accordingly, anyone who tells you that, 'things can only get better' should not be believed.