The leisure, hotel and restaurant sector will be one of the hardest hit by the recession new research suggests, with those in London suffering the worst.
A poll conducted of Institute for Turnaround (IFT) members by the IFT and GE Commercial Finance revealed that the hospitality industry, along with retail, construction, manufacturing, and financial and professional services were the five sectors most likely to be the biggest casualties of the recession.
Just 10 per cent thought UK businesses are well equipped to deal with an economic downturn, and suggested businesses should immediately focus on generating cash to boost their chances of survival.
Christine Elliot, chief executive of the IFT, agreed and said businesses needed to focus on their costs and seek help from business advisors early on.
“While some managers may have taken steps to prepare their businesses, many could not have predicted quite how severe economic conditions would become. It is vital businesses keep a close eye on their cash flow and cut any unnecessary costs in order to pull through these adverse conditions.
“However, seeking the advice or guidance of a seasoned professional or business manager can help businesses ensure they have the right structures in place so that they are best placed to deal with the economic downturn and in some cases emerge stronger.”