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How SMEs can mitigate slow growth and increased costs

How SMEs can mitigate slow growth and increased costs
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How SMEs can mitigate slow growth and increased costs
Siobhan Stirling - Sharp Minds Communications for Capital Space by Siobhan Stirling - Sharp Minds Communications for Capital Space
Owner/Director - Sharp Minds Communications Ltd

Inflation is skyrocketing and the effect on SMEs is starting to be felt across the UK. For many business owners, it is a worrying time but there are things you can put in place to best prepare for the next year or more. We’ve put together five ways you can safeguard your business in the challenging current economic climate.

Check your utilities, subscriptions, and essential services

Do you know how much are you paying for your water, gas and electricity?  What about insurance or your essential monthly subscriptions? If ever there was a time to audit your must-have payments, it’s now. Start by contacting your existing suppliers and see if they can offer a better deal. If not, do a little research into the alternatives.

Give your current customers some love

Keeping existing customers is always important but even more so now with the cost of living rising to new heights. Check in with customers and re-evaluate your prices if necessary as they are often your best source of referrals.

Recruitment as an investment

Shutting the door on recruitment may not be strictly necessary, or the best way to weather the current economic crisis. New additions may come with added cost but could bring new perspectives and opportunities. Apprenticeships can provide businesses with a long-term way to develop team members who are willing to learn at a reduced cost. Another option is to train current staff in new areas that will support your business’ growth.

Cash is still king

If possible, aim to build a cash reserve. This provides a buffer for tougher times and a bit of breathing space if required. If this reserve is not needed, then you have a pot ready to invest into developing the business with new staff, training or equipment.

Still charge what you are worth

The urge to reduce prices will be a tough one to ignore but that is a slippery slope. Hold firm and focus on providing a great service or product. Many businesses have been forced to pass price increases on to customers so you shouldn’t hesitate to do the same if necessary and makes financial sense.

If you are worried about inflation, rising costs and how to stay afloat going forward, there is a myriad of support via your accountant, the  FSB , your local Chamber of Commerce or Institute of Directors. 

To find out how Capital Space could benefit your growing business,
call 0800 107 4667 or email info@capitalspace.co.uk