How Productive Are You?


`There is still a demand for the right property at the right price’ as the enlightening phrase I read in a recent piece about property prices. This, hot on the heels of the edifying note in the BoE minutes that, all its policymakers were `expecting interest rates to rise over the next three years’. Indicating all roads away from stagnation could lead back to the same economy maze, the arguably cost-neutral budget statement, in context of the economy, was also disappointing.


Viewing the wasteland from economic crisis, I appreciate that making a prediction three years ahead is a difficult task, there’s little recent history  for comparison to the six years of static 0.5% and, whilst most around have made and continue to make sacrifices because of the fallout, it’s encouraging to hear that the property market doesn’t hold a zombie title. Similar to ‘when it’s snowing outside, you may be cold’ these assertions aren’t untrue but without underlying factors being clear they’re opaque and unproductive, which isn’t helpful when productivity is in general stagnant.


Continually attending to their business ownership challenges, proprietors necessarily face investment questions, typically, employee concerns and maintaining or improving their premises and equipment, the question mark is bold as it hangs  above the decision scale and can be exposed to shape-shifting from the dithering about how growth is measured. Business projections, being a mix of cashflow and general economic outlook, answers can be overshadowed by proportionately costly capital.


Sound investment should enable an increase to a business’s productivity (as it filters through the theory that increased productivity supports economic productivity), from which disposable income becomes available to allow proprietors to be in  position when they’re choosing whether to make more investment into their business or pay down that which their investments have consumed. A saving is only that which contributes to such an investment plan, not that which takes from it. Inflexible and costly capital is unsustainable; it is as restrictive to a business as inflexible working practice and random cost cutting to seek out savings.


Projections contend with adjusting the mix of numbers in context for supply, demand, price growth and inflation, in short the new economic conditions which are have been emulating an obstructed U-bend, as it evolves, notwithstanding who will be in Government after May 2015, we might see it having to re-think similarly to successful small business proprietors: flexibility holds great importance to being productive.

That which works for one…. doesn’t work for all.

Image and Article credit: copyright SUF © 2015