Friday High Five – a week of tough news

I detected a note of optimism bias in the gloomy statements from Begbies Traynor earlier in the week predicting an economic perfect storm, albeit, they were optimistic about the pervading pessimism.

Just as I’m sure that undertakers don’t actively want people to die, I recognise that Begbies Traynor (and other insolvency practitioners are available) don’t wish that thousands of businesses are about to collapse in imminent financial peril. But it wouldn’t hurt their business if they did.

I also accept the analogy that when you are a hammer, every job is a nail.

That said, there is a perfect logic to the bad news. Borrowing costs are climbing and putting many businesses into danger, especially those who had taken on debt in a different era of much lower interest rates.

I noted something else this week. The hospitality sector may well complain that the rise of the National Living Wage will hit their employment costs. But it could also be the factor that gives many of their younger customers a few quid more to enjoy a night out.

It’s not all been doom and gloom in our news this week. Wain Homes have a strong pipeline, online travel agent On The Beach seem to go from strength to strength, as do Travel Counsellors, who’s chief executive will be speaking at our Rainmakers conference in March.

We’ve had two terrific – and sold out – events this week, where I had the rare honour of interviewing two chief executives with the two qualities that seem to be needed right now, resilience and fortitude. Janette Martin from Talos 360 was as inspiring as she was humble. Jon Dutton from British Cycling made me want to get my muddy mountain bike out and experience the exhilaration of ‘two wheels good’.

We’re all going to need some resilience and inspiration this year, whether Begbies are right or not. 

Have a great weekend.