SME Success in 2025: Why Data-Led Decisions Matter More Than Ever – South East Business Feature

Author: Matthew Sutton, Chief Growth Officer

Company: Burgess Hodgson 

In a year where uncertainty remains the only constant, small and medium-sized enterprises (SMEs) must sharpen their decision-making more than ever before. At Burgess Hodgson LLP, we work with hundreds of owner-managed businesses and see first-hand the pressures SMEs are under – especially in the South East, which is home to nearly 40% of the UK’s SME population. 

From changes to the National Minimum Wage and National Insurance to updates in the Employment Rights Bill, business owners are being forced to reassess their operating models. And that’s without even factoring in inflationary pressures and consumer belt-tightening that are shrinking revenues across sectors. 

A Shifting Landscape in the South East

Here in Kent, our clients span agriculture, hospitality, construction, and professional services. Each is facing a unique set of hurdles: 

• Agriculture, a backbone of the Kent economy, is grappling with employment regulation changes and looming shifts in Inheritance Tax that are driving urgency around succession planning. 

• Tourism and hospitality see growth in visitor numbers, yet that footfall isn’t translating into sales. The High Street feels busier – but tills aren’t ringing. 

• In construction, delays due to Nutrient Neutrality rules are stalling projects and disrupting supply chains, with ripple effects across the local economy. 

These are not passing challenges. They’re deep structural and behavioural shifts that require not just awareness, but proactive planning. 

The Forecasting Imperative 

So, what’s the solution? It starts with what might sound like the basics: forecasting and fast reporting. And yet, in many SMEs, this remains underutilised or poorly executed. 

I’m not talking about complex modelling or multi-tab spreadsheets. What matters is producing information that is “materially accurate” – good enough to base decisions on. For instance, knowing that if sales hit £X, profit is viable. Then asking: What happens if we fall 20% short? What if we exceed it? Do we reinvest, pay bonuses, or pay down debt? 

The right time to ask those questions is not after your year-end. It’s every month. 

The Dangers of Gut Instinct Alone 

Too many businesses still rely on gut feeling: “There’s money in the bank, so we must be doing okay.” But that logic doesn’t account for VAT due next month, corporation tax around the corner, or payroll at month-end. 

It’s vital to match today’s bank balance with tomorrow’s liabilities. Forecasting your cash flow and financial obligations protects against sudden strain – or worse, insolvency triggered by overlooked tax bills.

Tech as an Enabler, Not a Cost 

The good news? Producing this data has never been easier or cheaper. Most banks now offer automated feeds into cloud accounting platforms. A process that once took days now takes minutes. Yes, there’s a cost to organising and interpreting the data, but that cost pales in comparison to the price of bad or delayed decisions. 

Final Thoughts: Make Speed a Strategy 

In a volatile economic environment, slow decision-making is the enemy. The businesses that survive and thrive are those that act quickly – not reactively, but responsively, using reliable financial data.