There are several measures you can take to protect your business and supply chain from rising prices. Here are five things to consider to help with inflation.
Plan ahead and bulk buy
Inflation is unpredictable, so it could be useful to have a plan in place for any increases. Regularly checking your cash flow can help you adapt quickly to rising prices, as can purchasing what you need in bulk. This may help you avoid delays as your goods will come in one delivery – and also gives you the chance to negotiate with suppliers.
Assess your prices
For many small businesses, raising prices can lead to a dip in customers. Instead, you could try selling different products with higher profit margins. Or you could cut the price of one of your best-sellers to draw in more customers who may then purchase other items.
Reduce any expenses
Streamlining your business processes, assessing productivity and reviewing your production costs are all effective ways of saving your business money, and keeping your cash flow in check.
Look after your existing customers
According to Forbes, attracting new customers can cost up to five times more than retaining a loyal one – while increasing engagement can help you grow your profits by 25%. So make sure you determine what keeps your customers coming back, and try to replicate the results through your other products or services.
Get a flexible business loan
A fast and affordable loan is a great way to strengthen your cash flow, or cover any bulk or increased costs. But remember to always assess your finances carefully and make sure you organise any finance in good time – so you’re ready to tackle any problems as soon as they arise. If you think a loan could help your business, contact our expert team today on 01908 92 62 62