Small Business Predictions for 2024
Explore the anticipated developments for small businesses in 2024, spanning legislative and tax changes to trending side hustles and the landscape of entrepreneurship.
Liquidity is key
Liquidity, or your cash flow, in business means you can generate enough sales to meet your ongoing running costs of your business. Last year we saw a steady increase of business running costs across the board, most of all from utilities and rent, and this trend is set to continue. Businesses must review their pricing strategy to ensure they stay cash flow positive day to day, the first step towards profitability.
More school & university leavers will start businesses
We’ve seen this ourselves since the pandemic. Companies House data shows there were 6,796 companies registered by 16 to 19 year olds in 2020 compared to just 5,729 in 2019 – that’s an increase of nearly a fifth (19 per cent), and that doesn’t even consider sole traders.
Key industries we expect to thrive in 2024
Sustainability will remain key for consumers. With the ever-growing importance of climate change front and centre in people’s minds as we experience erratic weather patterns, tapping into sustainable practices and products will be good for business, as well as the planet. The government is also focusing on childcare provisions for families, and we anticipate a huge rise in demand for childminders who can access the government funding now in place.
Taxes and tax reliefs will not improve over the next 12-24 months
Despite what you see in the headlines, with promises of tax cuts this year, we predict that taxes will continue to be high for at least 12 months, as the country’s debts are eye watering and local councils are already heavily underfunded. Any tax cuts announced during 2024 could well be reversed by the end of the year, if a new government comes into power at the planned General Election, sometime in November 2024.
