The last few years have been challenging for businesses following the pandemic, inflation and a steep increase in living costs. Nearly 72% of business owners say that they are concerned about these increasing costs and 23% predict their businesses will not survive this.
Below are several approaches that you can use to help give your business more financial stability so that you can secure its future and have ease of mind going forward during these uncertain times.
Consider Funding
If you plan to make improvements or put money into your business but don’t have the means to do so, a suitable alternative may be to take out a business loan. There are different types of loans out there, so review each one and decide which works best for your business and situation.
This extra funding means you can focus on new opportunities if they arise, which may require further inventory, additional employees, or a new location. Do not try to take out a loan that you may not be capable of eventually paying back. Being able to build your business credit by paying loans on time can make you eligible for larger ones in the future if necessary.
Look For New Suppliers
Often, businesses will become complacent about costs due to the long-standing relations they have with suppliers. It is beneficial to regularly look for other competing suppliers in the market and try to find a better quote. Different quotes can help you to manage costs more effectively and potentially get your current suppliers to reduce their prices.
Ditch The Unused Office Space
Since the shift toward remote and hybrid working, the necessity for office space has significantly reduced. If your business has decided to go along one of these routes, it might be worthwhile relocating to a smaller office or considering working from home permanently. This will save you significant costs in rent that can be reinvested in your company to be used for more pressing matters. This will also reduce the cost of energy bills, which are now reaching the highest price they have been in over 50 years. If you own the building or office space, think about renting it to another business which could help to boost your cash-flow.
Invest in Technology
Delve into innovative technology that can help to improve the efficiency of your business. As an example, new cloud computing systems remove the need for hardware, which is typically very expensive to purchase and then maintain. These types of technology can also increase productivity and safety through higher speeds, automatic software updates, extra storage, and robust data security.
