Throughout 2011, we have witnessed business Armageddon - from the summer riots, to banking fraud, and companies and countries alike going to the wall. During the first half of the year, companies became entrenched - waiting for the ‘usual state of play' to resume. But, from the middle part of 2011 and onwards, many realised that they needed to move forwards, and that the rules of the game had changed, forever...

David Bowler and Julia Payne, co-founders of Incisive Edge, the business consultancy which helps companies to grow in a focussed and strategic manner, believe it will be the end of the world for those entrenched businesses which choose to hide. They comment: "Those businesses which simply work to protect the balance sheet, and fail to invest in growth in a brave new world, will not succeed."

Here, Payne and Bowler offer their predictions for business trends in 2012:

  • Job security will continue to dissipate, and as a result, we will see more entrepreneurs coming through.
  • We will see more massive business failures, where the service proposition was incorrect, or uncompetitive and balance sheet frailties expose longer term rot.
  • Only a small percentage of companies will focus on harnessing growth, compared to the majority which will remain entrenched.
  • 2012 will be a good year for the technology sector with new solutions providing efficiencies and answers to specific client problems and needs.
  • More companies will look to expand abroad, or to export - in the realisation that other economies are faring better than the UK, and as new markets open up.
  • We will see different ways of raising finance becoming increasingly popular. More crowd funding will emerge, and angels will drive the way, as opposed to VCs and banks, which need to protect reserves from risk.

Incisive Edge also offers its top tips for businesses aiming to prosper:

  • Become an enlightened manager or business. Be forward thinking and look at ways of investing in what you have (harness internal resources), develop key areas of strength and build strategic alliances to overcome areas of weakness.
  • Don't play by the current rules. Amend product and service offerings to create competitive advantage, by focusing on value over cost and meeting manifold needs through a single relationship.
  • Take advantage of all forms of media and digital channels, to engage with existing and new clients, on their terms.
  • Put clients first - consider their market needs and what they need from your service in the context of their specific objectives, which may inform the buying decision
  • Companies need to focus on upstream marketing - understanding the client, as opposed to downstream marketing - focused on brand and customer advertising.
  • Position yourself in the market, find a point of differentiation.
  • Consider all methods for growth - cost cutting, productivity, product extension, depth, tiered packaging and bundling.
  • Make sure sales and marketing work in tandem to drive effective results and ensure efficient reach and engagement with target customers.
  • Consider strategic alliances to best serve the customer needs and pre-sell your business and increase distribution channels.

Incisive Edge - ‘The Profit Doctors', helps businesses to drive the bottom line through expert sales, marketing and digital strategies and provides a full-service delivery.

Julia Payne and David Bowler, Incisive Edge