At a time of economic uncertainty, businesses need to make sure they operating as efficiently as possible.
With rising interest rates affecting borrowing, high inflation and dramatically increased energy costs, it makes sense to look at how to keep costs down and possibly adapt your business model.
Maximising the use of technology can make systems and processes much more efficient, from ordering, through to payroll and bookkeeping.
Video technology has also allowed greater use of hybrid working. With staff working from home, can you operate from smaller premises, with less rent and overheads?
Eliminate waste
If you are still office based, with staff working remotely, can you sublet part of your space? Shop around for deals on energy, insurance, broadband and phone. Savings can also be made by going paperless, which also reduced office clutter.
Analyse performance
With analysis from a point-of-sale system, businesses should be able to project cash flow for the year ahead. Comparing data from the previous year will show the highs and lows of performance and allow planning for seasonal fluctuations.
Have a frank conversation with suppliers
Be prepared to ask suppliers about getting better value. It does not need to be confrontational, and they may be able to help with trimming costs. But also be prepared to deal with others who may be able offers better prices and service.
Could you pivot the business?
It could be that a more radical shift is needed and you decide to ‘pivot’ the business.
Pivoting means changing some aspect of products or services to better meet customer demand or attract new customers. It could involve targeting a new audience to boost sales or some combination of both, or utilising new technology with existing products, for example:
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