Costs are going up!
Businesses will be impacted
The impact on your business will come from the rising cost of services and goods. Along with interest rate increases on the cost of borrowing..
There are ways to mitigate these rising costs to protect your bottom line.
Cash-flow
Cash is king; understanding your cash position is paramount in tackling rising inflation. Look to build a medium and long term forecast model so you can see the impact of costs and revenue on your business.
We can help you do this, call for further information
Pricing
You control your prices look to increase them to combat the rising inflation. YYour competitors will be increasing their prices, so all you are doing is maintaining your position within the market.
Costs
Review every cost you have and evaluate which ones you can target to reduce. Contracts look to renew them and negotiate long-term contracts at a fixed price. Cancel any costs you don't read and review any variable costs; do you need them? You will be surprised what you are spending money on!
Employees
The highest cost to a business and the most important one, if pay reviews are due to look to secure new rates now pre continued inflation rates, it will help with cash-flow management.
Rent
If your rent is due within the next year, look to renegotiate it now and extend it for the next 5 years again; this will support your cash-flow forecasting.
Loans
If you have any variable interest rate bank loans/credit cards, consider converting them into fixed-rate loans over a more extended period. Again supports cash-flow know what you are going to spend.
Credit Control
Review your Debtors, the people that owe you money, look to recover as much as you can via credit control; this will support your cash position