Should your strategy be defensive or growth-focused?

Anna Stubbs • December 3, 2025

The latest edition of the Federation of Small Businesses’ (FSB) Small Business Index had some unexpected results when it comes to growth expectations of UK small businesses.

27% of businesses said they expected their business to shrink, close or sell up over the next year. This outweighed the 25% who predicted their business would expand over the same period. It’s the first time in the history of the SBI that expectations of contraction have outnumbered those of growth. And it underlines a growing trend.

Should you forget about growth and make your strategy more defensive?

Here are three key actions you can take to create a more defensive business strategy.


Improve your cashflow resilience

Focus on prompt payment by agreeing shorter payment terms with your customers and making sure you have credit control procedures in place to chase up any aged debt. This keeps cash inflows coming into the business, making it easier to meet rising costs.


Audit and optimise your entire cost base

Carry out a ‘line-by-line review’ of your business costs to identify and eliminate any non-essential spending across the company. Look for overheads that can be reduced and prioritise investments only in areas that can deliver immediate, measurable cost efficiencies.


Focus on core customer retention and value

Put your effort and resources into strengthening relationships with your most loyal and profitable customers. Reduce your dependence on high-cost, new-customer acquisition and look at nurturing your existing customer base. You should also review your pricing to make sure you’re offering value, but still creating healthy margins that will drive profits.



We can help you rework your strategy to reflect the challenging market

Talk to our team and we’ll work with you to review and update your strategy in a way that defends the long-term outlook of the business.

Why it's smart to accept payments online

By Anna Stubbs • December 3, 2025
One of the best things about online shopping is instant, hassle-free payment. Enter your details, click, and you’re done. If your customers can make an instant online payment, they’re likely to pay you more quickly – and they’ll appreciate the simplicity too. The details Online payment methods include credit and debit cards, ACH (Automated Clearing House) services like Paypal, and repeat payments through direct debit. Payments are managed by merchant service providers – specialist companies that process transactions on your behalf. Some focus on credit and debit cards, while others stick to ACH or direct debit. Choose a provider that can integrate with your accounting software, and you can add a super-simple payment button to future invoices. The costs While your merchant service provider shouldn’t charge any set-up fees, they will charge transaction fees. These range from 2-4% of the invoice for debit or credit cards, and under $2 a transaction for direct debit. These fees are an added expense, so they need to be included in your profit calculation – smart accounting software will do this automatically. Because credit and debit fees can add up, many businesses don’t offer online payment for invoices over a certain amount. The benefits Businesses using online payments get paid faster. Of course, not every client will pay instantly just because they have the option, but it should speed up your average payment time.  A bonus benefit? Customers appreciate the ability to pay online, so offering it as an option can be a big point in your favour. Ready to reap the benefits of online payments? Get expert advice and set-up support from our accounting team.

5 challenges for small business - and how to beat them!

By Anna Stubbs • December 3, 2025
Starting, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't always smooth. There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking. So, what can you do to beat these challenges and make the journey as frictionless as possible?

The Budget: key points for small business owners

By Anna Stubbs • December 3, 2025
The Chancellor of the Exchequer, Rachel Reeves, delivered the Labour government’s Budget on 26 November 2025, with the key aim of bringing the UK economy back under control. Let’s take a look at the main points from the Budget announcements and how they may affect your small business in the coming months and years.