Owner-Managed Business Report
Baker Tilly spoke to 200 directors of owner-managed businesses (OMBs) between December 2009 and March 2010, to gather their opinions of what the current economic climate means for the nation’s OMB community. We asked our respondents about a range of issues, including the outlook for sales, margins and profits, their employment plans, perceived threats, risks and opportunities for growth.
The responses of those taking part represent real experience. Rather than basing their assessment of future prospects on market reports and analysis by pundits, our respondents drew on factors such as their own order books and customer enquiries. As one director put it, “we look at the number of people through the door and how much they spend.”
In this respect, our OMB survey represents a dispatch from the front line of the mid-size business sector at a crucial time for the UK economy. Its findings offer a unique insight into the impact of an unprecedented recession on OMBs and the outlook for the future as they see it.
Download Owner-Managed Business Report (PDF- 581kb)
In the report
- Optimism and trepidation
A majority of owner-managed businesses expect to increase sales in the next 12 months. They are confident, for the most part, that they can maintain their gross margin and increase operating profit.
- Growth, growth, growth
Respondents were significantly more positive this year than last with more than double expecting to increase sales as compared to a year ago.
- Pragmatism vs political risk
While respondents were generally optimistic about the prospects for their businesses in 2009 they remained pragmatic when it came to how they would assess whether of not the economy was improving.
- Trends and opportunities
We highlight the major trends and opportunities in various industry sector in the next two years. A varied range of comment resulted from our interviews.
- Threats, plans and regional differences
Just as owner-managers were optimistic about prospects of sales growth in the coming year, so they are naturally concerned if such sales growth is not, in fact, realised.
- Exits – more stability, fewer sales
We found that quite a large proportion of those who own more than 10% of the shares in their businesses intended to sell some or all of them within the next 10 years.