Many of us are no stranger to the fact that the cost of living in the UK is rising. From inflation, to food prices, electricity and even fuel prices, it is a difficult time for a lot of people and businesses. Whilst big businesses may be able to profit from this, a lot of small business owners are becoming increasingly worried about their survival. With operating costs through the roof, many are not finding it profitable to run anymore – and you can expect to see a lot of local or small businesses shut down in the coming months. We have created a small list of ideas that business owners can do, in order to survive this difficult trading period.
How to survive the cost of living increase as a small business
Track your expenses – It is difficult to cut your operating costs unless you know how much you are actually spending. Make sure you are aware of all your costs – from electricity, to rent and water bills. Compared amongst other providers and try to find a better deal, as this may save you money and you could get a discount on your first month with a new provider. The most obvious solution is to try and cut costs where possible, this may be hard with fixed costs such as rent – but variable costs such as electricity and water usage could be improved upon if you and your staff make a conscious effort to focus on reduced use.
Trying to gain new clients – Gaining new clients can help to offset the increased costs that you are facing. You could try to increase your marketing, through social media for example which will cost you nothing to do. Why not consider implementing a loyalty scheme, to retain customers and show your appreciation for shopping with you?
Taking out a business loan – Some may be fearful to take out a business loan, however, they can be a great way to help your business stay afloatuntil times get a bit easier. Not only this, but you could use this loan to invest in creating sustainable processes, to cut down your costs going forwards, and also reduce your carbon footprint which is a great selling point.
Negotiate with your suppliers – Try to negotiate with your suppliers, in order to get a better rate on the items that you are purchasing. This can be easier to do if you have a long-term relationship with them, as they will not want to lose you as a customer. If you are unable to get better rates, consider swapping to a more affordable supplier to cut your costs.