The External Factors Which Might Be Influencing Your Company

Any business is subject to certain laws, and it is important to appreciate that you only ever have a limited control over what happens, even inside your own enterprise. There are a huge number of factors which influence what happens within any business, and it is important to appreciate what those might be so that you can act in a more decisive manner, as well as appreciating the full extent of what you can’t control. In this post, we are going to take a look at some of the things that you might not have considered which can affect the way your business performs. Coming to a full understanding of the following will ensure that you are in a much better position to bring your business to where you want it to be. Let’s take a look.

The Economy

Nobody can accurately predict the economy, although some people try to, and yet it is one of the largest influencers on your business from the outside. If the economy is in a bad way, you will find that it negatively affects how many people come to your business. This is pretty much true no matter what you trade in, but certain business types will be less affected by economic downturns. These will generally be those businesses that deal with things that everyone will always need. If you are in food retail or housing, then it is likely that economic changes won’t affect your ability to trade quite as much. You will however still need to pay attention to what the economy is doing, and ensure that you are acting correspondingly within your business.

When the markets take a downturn, every business will be affected to some degree. The first thing to bear in mind here is that it is beneficial to have an emergency plan for when things get really tough. Knowing what you’d do in that situation will help you to worry about it much less, and it will ensure that you can make the right decisions when the time actually comes. You will also want to think about whether you want to part up with anyone else, as in times of difficulty businesses coming together is actually one of the best moves you can make. It all depends on the situation, of course, but it is worth thinking about before it actually happens.

You can’t control the economy, but you can contribute to a healthier one by building a strong business that fills a gap in terms of providing something people need, and then giving it to them at an affordable price. If businesses everywhere remain fair, the economy is more likely to last longer before another crash – which is in turn good for businesses themselves.

Politics

Politics does, of course, tie in neatly with the economy, as one of the major influencers of economics is what the politicians are doing and saying. Any country’s current currency value is in part determined by the global reputation of the government, so clearly the two are intricately entwined. But there are many other ways in which politics affects the world of business – far too many ways to count, in fact.

One of the biggest ways that political change can affect businesses is if there is a big decision which changes the future of the country in question. The most obvious example from recent years in the UK is the Brexit vote. Even before article 50 was triggered, businesses were clearly already having to change their behaviour in the marketplace. It looks unlikely that this will not continue to change over time, especially once the UK has actually left the EU. if you are worried or wondering what might become of Brexit and your Limited company, that is understandable. The best thing to do is to try and retain a sense of control over your business, regardless of the changing political space. If you can do this, you can hopefully build a corporation which will stand strong regardless of political changes.

By focusing on the political stage and not shying away from the changes at hand, you can take your business through any dark times and out the other side. This is all you can really hope for when it comes to business, so that is what you might want to aim for.

Your Competition

All businesses have competition, and it’s good that they do. If you had no competition, it would be unlikely that you would be pushed to achieve in quite the same way. That being said, it is clearly not always a great thing that your business has a lot of competition. One of the things which any business owner needs to learn how to do is to deal with the blows that can result from having competition, especially when it is fierce, in a way which leaves your business the strongest and coming out on top every time. But how can you do this?

It is important to keep track of what your competitors are doing within their own businesses. Having a clear understanding of that will ensure that you know what’s going on in the marketplace, and it will mean that you can make much more sensible decisions for your own business too. It might be that your competition sometimes surprise you with what they do – if this is the case, you should pay careful attention to those moments, as they are often great teachers for where you should be heading. Sometimes this means emulating your competition in some way, at other times it will mean the exact opposite. Either way, the main thing is to be aware of what it is you are trying to do, and how it is that your competition affects that.

If you can get a handle on the various external influences of your business, then you will be much more likely to steer it through any dark times. This is often the best you can hope for, and it will anyway give you a better understanding of how your business functions within the world at large.

Michael Foote

Quote Goat’s founder and money-saving enthusiast.

Michael FooteThe External Factors Which Might Be Influencing Your Company

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