6 top tips on managing a business in a harsh economy

Everyone in the county is feeling the pinch right now. Including businesses. That is why it is important to keep overheads low and protect your cash flow.

With inflation now being at 10%, overheads are becoming increasingly expensive and if you are not giving employees a rise at this time you are essentially cutting their wages. So with supplies becoming increasingly expensive, and employees requiring higher salaries, many businesses are feeling the pressure. To add to this, we are also seeing interest rates rise as the government attempts to suppress demand, currently at 1.75%. However, they are only expected to rise as inflation does too.

So, here are some top tips on operating under a tricky financial climate…

Prepare for future increased costs

In this unpredictable climate, when prices and interest rates surge without warning, it is key to prepare. Therefore, you should be stocking up now before prices increase any further. So now is time to proceed with any buying plans you may have.

Easier said than done though, right? Especially when you have a cash flow to consider. But that is where we can help, we can help you gain your desired goods whilst maintaining a healthy cash flow. But more on that later.

Negotiate

Now more than ever is it important to try and get the best possible price. So now is the time to work on your haggling skills, remember that every penny counts. It is always worth asking for wiggle room as I’m sure you’ve been told before- if you don’t ask you don’t get.

Reevaluate your overheads

Cutting any unnecessary costs at this time is vital, as mentioned above, every penny counts as it all adds up.

Also, it might be time to start shopping around. Perhaps you have an overpriced supplier that you have been using for yonks that you have just never considered changing. As a loyal customer, there should be more than enough space for negotiation, and if they don’t budge it is probably a sign to start looking elsewhere.

Review your prices

As you are most likely already aware, raising prices often leads to a decline in customers. Therefore, a good strategy is lowering the prices of one or two of your bestsellers. This will attract new customers who will then hopefully go on to buy other products of yours. Therefore, you can remain competitive and will make up the costs elsewhere.

Focus on retaining existing customers

Apparently, attracting new customers costs up to 5 times more than just keeping existing ones. So, this is an important time to identify what keeps your customers coming back and focus on keeping up the good work!

Obtain finance

Business loans are a fast and effective way of getting an instant cash injection into your business and improving your cash flow.

However, for if you have your eye on a specific piece of equipment, asset finance and leasing might just be ideal for you. With our flexible finance options, you can acquire the kit you need and still keep cash in the business to be used elsewhere. We can work with a supplier of your choice, or if you’re unsure we can always give recommendations.

Why not get in touch?

Here at WestWon we offer industry leading rates and have a 96% acceptance rate. Not to mention our 5* customer service, so there’s no doubt that you will be taken care of in our hands. Give us a call on 01494 611 456. Or, send an email to hello@westwon.co.uk and member of our team will be happy to discuss any finance requirements you may have.