7 Ways That Can Help Your Business With The Cost Of Living Crisis

The news is full of stories about the cost of living crisis which is affecting individuals and businesses alike. Whilst soaring costs can be an overwhelming prospect, there are things you can put in place to lessen the burden of the price increases. Here are 7 ways that can help your business with the cost of living crisis

Embrace financial forecasting

Financial forecasting is never as important as during economic downturns and when prices are surging. Accurate financial forecasting can help predict your business’ finances and give you a clear picture of your financial performance. Increasing costs can cause panic, but by keeping a level head and forecasting correctly will help you in the long run and will help prepare your business for any difficult times ahead, helping you plan for ways to save now in preparation rather than as a reaction.

Chase payments effectively

It can be difficult to chase clients for payments when times are hard as they are inevitably hard for them as well. However, having a robust system to ensure you get paid on time can be the difference between surviving the tougher times. Payment delays or failed payments can lead to a loss in revenue and be detrimental to your cash flow. Send any invoices out as soon as possible and create workflows that send follow-up reminders.

Invest in marketing

It can be a common reaction when prices increase, to cut costs in areas such as marketing. This can end up being more damaging in the long run as the marketing of some form is required to raise brand awareness and generate sales. Whilst stopping marketing together is not necessarily the best move, there are lower-cost methods that you could opt for. Start writing your own content in the form of articles or blogs and ensure your social media channels are updated consistently. Taking time to do research about industry trends will help you see what other companies are doing that you can replicate at a lower cost.

Also, consider attending local or charity events. This can help build trust in the local community without a huge outlay.

Control costs

The first thing you should do is assess your current outgoings and expenses. Can you identify any areas that can be cut or find a cheaper alternative? Spending time doing this in detail can make a massive difference overall.

Raise finance

You may think that you will struggle to raise finance during a cost of living crisis but this is not necessarily the case. Despite the short-term difficulty dealing with increased costs, if you have a viable business growth plan, you may still be able to acquire finance through a loan or investment. If successful, this will make your business more liquid, enabling you to keep on top of the costs whilst still growing the business for the future.

Focus on customers

Remember that the cost of living crisis will also be heavily impacting your customers so it’s always a good idea to think about how you can help customers and ensure you gain repeat customers or additional sales through word of mouth. Incorporating loyalty systems or allowing customers to spread the cost using a finance option may help increase sales even when money is tight.

Make the most of your accountant

Using accounting software such as Xero or Quickbooks can save you a substantial amount of money and can often be made monthly or yearly which is perfect for spreading the cost. In addition to this, your accountant is not just here to help with bookkeeping. From strategic advice to money-saving tips, debt management techniques, and advice on how to boost revenue, accountants need to be treated as a business advisors for your business as a whole and this is invaluable during times like these. Your accountants will be working with other businesses in your industry or similarly sized businesses so they are a wealth of knowledge to help you reduce costs and operate more efficiently.

These are just some of the ways that can help your business with the cost of living crisis. It is inevitably going to be an extremely challenging time for businesses of all sizes, with additional costs continuing to increase from raw materials to energy, business rent, and more. Whilst the cost of living will put pressure on many businesses, all is not lost. What we have discussed in this article are some practical ways to save money and plan efficiently during turbulent times.