Musk shifts focus back onto Tesla, the IMF’s prediction for 2025 and AI proves beneficial to SMEs
With Elon Musk recently announcing he is stepping back from his US government role to place a greater focus on Tesla, we explore how business owner can’t take their eye off the ball with their business if they wish to stay ahead of the game. We also take a look at how AI is proving valuable to SMEs and how you can harness the power of artificial intelligence.
Why Business Owners Must Stay Involved: Lessons from Elon Musk’s Recent Shift
Recent news about Elon Musk offers a timely reminder for business owners about the risks of losing focus on their core operations. After Tesla reported a sharp drop in profits and sales at the start of this year, Musk announced he would “significantly” reduce his involvement in his US government role with the Department for Government Efficiency (DOGE), refocusing more of his time on Tesla.
We are not here to discuss the politics of Musk’s government involvement, but the situation highlights a critical lesson: business owners need to stay actively engaged in their businesses, particularly during challenging periods.
When owners become too distracted by external commitments, even capable managers may struggle to maintain the same vision, energy, and strategic oversight that a founder or key leader brings. It can lead to slower decision-making, misaligned priorities, and missed opportunities – all of which can erode performance over time.
That’s not to say leaders must micromanage. Effective delegation is essential for growth. However, delegation requires structure, including:
- Setting clear expectations and goals.
- Regularly reviewing key metrics and financials.
- Staying close to strategic decisions, while trusting managers with day-to-day execution.
- Maintaining visibility with customers, investors, and employees.
Delegation without accountability can quickly become abdication – and the business can drift off course before the owner realises.
Musk’s pivot back to Tesla underscores how important it is for business leaders to balance external ventures carefully, especially when core performance starts to slip. Active leadership remains one of the greatest competitive advantages any business can have.
See: https://www.bbc.co.uk/news/articles/cy0x50yr46lo
What the Latest IMF Forecast Means for Business Owners
The International Monetary Fund (IMF) has predicted that the Bank of England could cut interest rates three more times this year, despite the UK facing higher-than-expected inflation.
Inflation in the UK is now forecast to be 3.1% for 2025 – the highest among advanced economies – largely driven by higher utility and energy bills. However, the IMF believes this spike will be temporary, paving the way for further rate reductions. It expects inflation to fall back to 2.2% by 2026, close to the Bank of England’s long-term target.
For business owners, potential rate cuts offer both opportunities and challenges:
- Lower borrowing costs could make it cheaper to invest, expand, or manage cash flow.
- Persistently high costs – especially energy and utilities – could still squeeze margins in the short term.
- Global uncertainty, including US tariffs, could affect supply chains, trade opportunities, and demand, depending on your sector.
The IMF also downgraded its growth forecast for the UK economy in 2025 from 1.6% to 1.1%, reflecting the impact of global trade tensions, particularly from new US tariffs. While this is a slowdown, it still places the UK ahead of France, Italy, and Germany.
The message for businesses is clear: while interest rate cuts could support borrowing and investment, ongoing cost pressures and global instability mean careful financial management and resilience planning remain essential.
See: https://www.bbc.co.uk/news/articles/cy9vy7yq849o
AI Adoption on the Rise Among Small Businesses: A Boost for Productivity
According to new research, small and local businesses across the UK are increasingly embracing artificial intelligence (AI) tools to improve efficiency and streamline everyday operations.
A study led by Professor Ross Brown of the University of St Andrews Business School found that SMEs using AI tools could achieve productivity gains of between 27% and 133%. Based on interviews with nearly 10,000 businesses conducted by the Department for Business and Trade, the findings suggest AI could play a significant role in helping small and medium sized businesses make productivity gains.
Professor Brown explained, “AI potentially offers SMEs short cuts that provide quick productivity wins, like planning staff rotas or reducing food waste in a small restaurant. These solutions are inexpensive and relatively easy to implement.”
Faire, a wholesale marketplace used by independent retailers, has also conducted its own research that highlights the growing appeal of AI. It found that 83% of 300 surveyed small businesses reported using AI tools, with more than a third doing so daily.
Examples of its use include using AI to help with marketing tasks, such as writing product descriptions and blog posts.
However, many also remain cautious in what they use AI for. For instance, over-relying on the technology for core business decisions.
While some business owners remain cautious, there’s no doubt that AI is proving to be valuable for managing many time-consuming tasks. For small businesses, AI could become an increasingly important tool in the growth of their business.