Two-thirds of companies are optimistic about increasing their revenues in 2010. The buoyant mood spans across continents including the US, Australia, China, Middle East and more, all share a sense of optimism, according to the Regus Business Tracker Study.
The International Monetary Fund (IMF) has stated that the Middle East economies were showing signs of some recovery from the financial turmoil during the last months of 2009. In its latest World Economic Outlook for 2010, the IMF raised next year’s growth estimate for the region to 4.2% from a July forecast of 3.7%. This has given businesses across the Middle East and in other regions confidence in investing into the region due to its promising growth.
As for the UAE, the Ministry of Economy predicts that the country’s economic growth would go up to 3% in 2010 from 1.3% this year, the double growth will assist in promoting the UAE further as a promising land for investment in various sectors such as real-estate, IT, travel/tourism & hospitality to name a few.
On the agenda for 2010
With recovery scheduled in the corporate calendars for the 2nd or 3rd quarter and widespread expectations of rising earnings, prospects look good for many businesses. Good, yes. Guaranteed, no!
Commentators & business specialists believe that, to prosper from the recovery, businesses need to learn from the lows of 2008 and 2009 and make changes to their future strategies and operations. They also need to do it before the recovery happens, rather than waiting. So what should be on their resolution list for 2010?
Mark Dixon, Chief Executive of Regus, gives seven tips that every business should think about during 2010:
- Think small. Businesses of all sizes could learn from the example of small businesses. The Regus Business Tracker Study showed that companies with fewer than 50 employees are more bullish about 2010 than their larger counterparts, suggesting the economic recovery will be led by them. There’s also evidence that smaller companies are more go-getting and externally-focused - putting their energy into marketing and customer retention, while large firms are struggle with internal concerns like cost management and staffing.
- Take a trip. When it comes to focusing externally, businesses shouldn’t let international boundaries stand in their way; China, India and other emerging economies have huge potential for future growth. With communication technologies becoming ever more advanced and ever cheaper, doing business abroad can fuel future growth prospects.
A word of warning, though: research into new markets is key, as is finding the right international partners otherwise costs can begin to spiral out of control - Work smarter. Businesses all over the world are looking at the cost of headcount, but many neglect to look at other fixed costs. For the majority of businesses, property is the second biggest fixed overhead. Even so, 95% of businesses fail to identify it as an area where they could make major savings. Instead of locking themselves into costly, fixed-term property arrangements, they should look at more flexible arrangements, such as short- or medium-term leases, or virtual working. Flexible working can reduce a company’s property costs by up to 60% whilst creating a more motivated workforce.
- Go green. Take the opportunity to benefit from more energy efficient technologies. Cost-saving, green technologies like energy monitors, and air conditioning and lighting can significantly cut utility bills. Organisations like the Middle East Centre for Sustainable development can give advice on energy-efficient technologies and grants. In addition virtual and flexible working can reduce a company’s travel costs, as well as cutting employees’ carbon footprints.
- Look around. Recovery or no recovery, some sectors have been thriving even during the recession. Telecoms, for example, are strong globally, with many developing countries installing new mobile technology. Sustainable technology is also doing well, thanks to strong investment in the sector.
Businesses of all sizes should look for ways to benefit from the opportunities in thriving sectors, and never get so trapped by day-to-day management that they fail to spot new openings.
- Outsource. Companies should focus on revenue-generating activities and outsource the rest. Property, administration and support services can all be handled by other people, allowing businesses to concentrate on the activities they do best.
- Network. Love it or hate it, networking is vital for meeting new customers and contacts, and gathering information and advice. It’s one of the easiest ways to generate new business.
By Q2 many people will already have ditched their 2010 resolutions about gyms, diets and cutting the carbs. If the two-thirds of companies expecting revenue growth next year want to see their expectations come true, they may need to be a little more serious about making – and keeping – some corporate resolutions for 2010.
