Did you know that the cost of living has surged at its fastest pace in almost 10 years? The Consumer Prices Index (CPI) reached 4.2% in the year to October. It is primarily due to higher fuel and energy prices but the cost of second-hand cars and eating out also increased, the Office for National Statistics (ONS) have said.
The Bank of England says it may have to raise interest rates in the ‘coming months’ in order to tackle rising prices.
For Businesses:
It’s a good idea to avoid sudden price rises that encourage consumers to look around for cheaper alternatives. A gradual plan for price increases is probably a more sensible option. Inflation will also affect the prices you pay for stock and other expenses, so now is a good time to reflect on your stock levels & consider alternative sources of supply and review the profitability of your products, goods and services to ensure they are and will remain profitable.
A few ideas to help with being resilient:
- Review your Budgets and set realistic and achievable targets for the remainder of 2021 and 2022.
- Get rid of won’t pay customers.
- Chase up any overdue invoices.
- Make sure your terms of business contain explicit payment terms.
- Assign responsibility to one individual for invoicing/collections
- Put extra effort into making sure your relationships with your better customers are solid.
- Encourage staff to suggest ways to simplify processes (brainstorm about cost reductions)
- Review your staffing needs over the next few months.
- Review your list of products & services and eliminate those that are unprofitable or not core services/products.
Please feel free to talk to us about planning ahead because we have considerable experience with helping our clients with their strategy and sustainability in turbulent times: 01978 852698.
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Posted by popcreative on 24th Nov 2021 12:36:31
