Lancashire businesses have faced a range of external challenges throughout the early months of 2025.
In addition to the National Minimum Wage and National Insurance employers’ contribution increases which came into effect this month, companies are facing economic volatility brought about by global political factors including the potential new tariffs of US president Donald Trump’s administration.
Two Zero has gathered the thoughts of three further experts from Lancashire’s scaleup ecosystem for the second part of our series assessing the unique challenges these issues present for Lancashire’s fast-growing businesses and advice on how to stay resilient.
You can read part one here.
Suzi Wynne, owner and founder – Wynne Business
What will be the key challenges for Lancashire scaleups over the coming months?
My fast-moving consumer goods clients have had a turbulent time for several years. Now, with increases to National Insurance contributions and the National Minimum Wage, it continues to be tough times. These rises have been well documented, but my clients are also seeing the increases from supply chain and materials, as the companies absorb the extra costs.
I have spent most of the past few months helping clients navigate increasing their prices to retailers since the Autumn budget. They generally all sell to the supermarkets and are looking to scale, but the risk of investment is now more prevalent with the geopolitical instability. There is also the feeling that this year could get tougher.
With the economic pressures, my feeling is the bigger companies get bigger and the smaller retailers and wholesalers suffer.
What is your advice to help scaleup businesses stay resilient through the current economic challenges?
Even during tough times there will always be opportunities for those who seek them.
- A couple of my clients are looking at efficiencies such as wastage, buying better and considering robots for some of their production process, which will lead to improvements in the long term.
- I would also advise scaleups to really focus on ensuring they value proposition is robust and they are engaging with their customer segment.
- Make sure you know where your profitability lies, by product and by customer, and develop these segments to make your business stronger.
Rob Hallam, managing director – Bigtank Productions
What will be the key challenges for Lancashire scaleups over the coming months?
Primarily it will be weathering and navigating the uncertainty that currently surrounds most businesses we speak to, caused mostly by the volatility of the UK and global economies. Even those businesses we deal with that are profitable with healthy pipelines are hesitating before taking steps to invest and try new things to grow their businesses.
There definitely seems to be a focus on battening down the hatches, sticking to what companies know and waiting until there is a degree of stability again. However, the plus side is the suppliers that focus more on shouting about their offerings to a relevant audience and really look at what is going to bring clear value to their clients in a hesitating market will reap the rewards.
We see this as really focusing on the compelling stories around the products and services we offer and then backing those up with real-world, tangible and measurable success figures. Effectively, leave clients in no doubt that what you have is commercially relevant and successful for them – that should weather any storm that governments and economies throw at us.
What is your advice to help scaleup businesses stay resilient through the current economic challenges?
Don’t overcomplicate and don’t lose sight of what got you to this point in the first place. It is likely that you have been here before, just that the challenge had a different name, ie startup, recession, Covid or Brexit.
If your product or service really delivers value to your clients, work on clearly articulating that with zero ambiguity to a targeted market and you will get through most challenges that lie ahead.
Nikki Whittle, partner and head of corporate – Lancashire, Brabners
What will be the key challenges for Lancashire scaleups over the coming months?
The recent economic volatility is continuing to impact businesses from Lancashire and across the UK and this looks set to continue over the coming months, which presents a range of challenges for scaleups.
The Q1 2025 Quarterly Economic Survey, published by the North and Western Lancashire Chamber of Commerce and sponsored by Brabners, painted a picture of cautious optimism following the government’s inaugural budget in October and its impact on businesses at the end of last year.
However, it appears global factors have already dampened this optimism – particularly the potential impact of US tariffs on the world’s economy. The US is a significant market for UK goods and services. Businesses that trade with the US currently have little clarity on future margins, which will have a knock-on impact throughout supply chains over the coming months.
Scaleup businesses are generally working to a three or five-year growth strategy and the current volatility makes it very difficult to plan coherently beyond the immediate weeks.
What is your advice to help scaleup businesses stay resilient through the current economic challenges?
It’s important that scaleup businesses speak to their advisers, their peers and any other groups they may be part of. There is a wealth of networks in Lancashire – engaging with these can help give business owners a new perspective, as well as a better understanding of the support which may be available to help them through the current difficulties.
Brabners organises several events at our Lancashire office aimed at ambitious entrepreneurs and business leaders, including our quarterly Business Club and Business Circle.
External funding is also an option to give greater financial certainty over the coming months to companies on a growth curve. Despite the current volatility, growth finance is still available for quality businesses, including equity finance, which offers the additional benefit of access to external knowledge or skills from an equity provider.
Another key piece of advice is for business leaders to stay positive where possible. There are still lots of companies across Lancashire focusing on growth, whether that’s by looking at new markets, customers, or ways of operating. If we focus on the negatives and talk down the economy too much, it can become a self-fulfilling cycle.