Avoid being stung by rising business costs with this single solution
In the wake of last week’s budget, it may feel as though the Government did not have the best interests of our small business community in mind, particularly when deciding to hike business rates and increase National Insurance Contributions for the self-employed.
Together with the looming uncertainty of Brexit and inflation at its highest level since July 2014 – recorded at 1.6% in December 2016 – the prices of everyday goods and services have been pushed up, not to mention the national living wage coming into effect later this year. It’s fair to say small businesses are definitely feeling the pinch.
However, in an era of gloom, there are other ways to improve margins that don’t involve passing on costs to your customers, perhaps your most valuable asset. For instance, when was the last time you benchmarked your suppliers? Not only your utility and energy providers, but your printing suppliers, stationery suppliers, recruitment agencies and even your finance provider.
Getting the best deal for your business
Though your current suppliers might once have offered the best value on the market, this can easily change, so it’s important to review your current arrangements regularly, as an integral part of improving cash flow.
A crucial part of this process is reviewing any external funding you might have, and the provider, in terms of the flexibility, cost and level of service it provides. Doing this regularly can benefit your business and put you ahead of the rest. Read more about benchmarking here…
For example, you may find that the overdraft you might have in place is proving restrictive. Invoice finance, for instance, allows businesses to maintain a healthy cash flow by releasing cash against new invoices as they are raised. By being able to access up to 90% of its value just 24 hours after its issue, early settlement discounts could be secured with suppliers to increase those margins even further.
Find greener grass
At Hilton-Baird Financial Solutions, we are pleased to have helped a number of businesses to successfully secure funding solutions which are more suited to their business model and provide additional benefits that might not have been available from more traditional products. Click here to read how we helped this client successfully secure a better suited solution to their funding needs, by using our knowledge of the market to introduce the best possible options available, saving them time they could spend furthering the success of their business.
Ultimately, these price increases shouldn’t lead to businesses burying their heads in the sand and viewing it as another threat. Instead, it could be the catalyst to better rates being secured.
If you would like to learn more about how our benchmarking service can help you, call our team today on 0800 9774833 or get an instant quote to find out how much your cash flow could be improved.