1. Streamline and automate processes.
As the cost of labour continues to climb, re-examine processes. Could time-intensive work be automated? Is there software that can be deployed to automate business processes like scheduling, order taking, billing or collecting payments? Is robotic processing an opportunity when manufacturing a good or completing a repetitive task?
Think about what doesn’t work well now. From re-organising the warehouse with new shelving which will create efficiency and aide productivity to reviewing job descriptions and finding areas where duties can be streamlined for better results. The more quickly and efficiently you and your employees work, the higher your profit margins are likely to be.
2. Analyse profit margins.
Examine your profit margins carefully with so many price increases being sent through recently are your pricing structures correct? Start by re-evaluating your costs and then analyse what margins you’re actually now facing. From there, start looking into solutions to increase those margins, while continuing to ensure quality products and services.
Not sure or need help to review these numbers we are only a phone call away on 07 578 5416.
3. Cut expenses when and where possible.
Reduce wherever you can, do you need all the office space? Have you considered subletting, or sharing space to maximise the return on the space you’re paying for?
Check if your paying for products or services that aren’t being used and cancel those items - many times we see ongoing subscription fees which we find clients aren’t using.
Do a quick review of your expenses and see if there are any savings by changing suppliers – do a price check comparison. Also consider substituting materials. You may find alternate products or ingredients that will save you money.
4. Stock up on supplies now.
To insulate against inflation while also addressing supply chain issues stocking up on core materials can prove worthwhile. You may also be able to achieve better pricing by doing this. Also consider renegotiating contracts with suppliers and buying large equipment now, as prices are likely to increase. You may need to re-invest from the bank or via a loan broker. If you are considering taking these steps we encourage you to meet with us to review a cashflow plan.
5. Raise prices judiciously.
While raising prices isn’t ideal, it may be helpful in combatting inflation’s effect on your business. Avoid turning off customers with dramatic across-the-board price increases. Instead, raise prices slowly in modest increments and be strategic. Choose areas where customers are less likely to notice.
6. Be ready for new customers.
Inflation often creates new customer segment opportunities, so go after them. Inflationary periods are unnerving so many customers look for better deals, better relationships and sometimes a fresh face. Make sure you know your target audience and your brand is speaking to them. Be ready to say yes and woo potentials with your best foot forward.
7. Put a plan in place
As the saying goes if you fail to plan, you plan to fail. We’re here to help you put everything together and can run a full business diagnostic and support you in putting together a plan of attack to provide you the confidence to succeed.
8. Book a well deserved break
Remember you have to look after yourself to be able to look after your team. So make yourself a priority and ensure you get a chance to refresh and reset.
If you would like help achieving within any of these eight areas get in touch with Grace Team Accounting today for business planning and coaching. Call 07 578 5416