How to reduce the impact of rising business costs
Rising business costs are continuing to restrict small business growth and put pressure on cash flow.
A number of regulatory changes in recent years including GDPR, auto-enrolment and the EU ruling on holiday pay, as well as general price increases have all made running a business more expensive, particularly for small businesses.
A number of industry leaders have called on the government to give small businesses support by way of reduced red tape, reduced employment costs and reformed business rates.
Whilst these regulatory changes could help ease the pressure, there are steps SMEs can take to help mitigate the impact of increased prices themselves.
When was the last time your benchmarked your suppliers?
Regularly checking that you are getting the best deals for your business is a great way to save your business money and improve your bottom line.
Our benchmarking series has lots of helpful tips for reviewing your suppliers and keeping costs down.
Pass increase on
Another way to mitigate the impact of rising business costs would be to raise prices to account for these costs.
But, understandably, many businesses find the prospect of passing the rise on to their customers daunting.
This could be due to increased competition or out of fear of losing business.
Optimise your funding
Your current funding facility could also be an issue.
Lack of flexibility in funding could mean that when faced with increased demand, you have to turn down custom because you don’t have the resources to complete the order.
To see if your funding is failing your business take a look at this blog post with 6 signs to look out for.
If your company is struggling to keep up with rising business costs we could help. As an independent commercial finance broker we can help you find and secure the most suitable funding facility on the market for your business’s needs and goals so that you never have to miss another opportunity again. Call us today on 0800 9774833 or email firstname.lastname@example.org to speak to a member of our team.