5 tips to for SMEs to tackle rising cost of living

Here are our top practical ways for small business owners to adapt to the impact of rising production costs and cost of living increases on their businesses, customers and clients.

The cost of living is rising for small business owners and their customers and clients alike, with factors such as inflation and higher production costs contributing to that rise. Cash flow and business demand form the number one challenge for 25% of small business owners, and that economic and supply chain concerns are the number one challenge for 22% of small business owners.

Rising costs can increase pressure on the buying habits of customers and clients, and on the cash flow of small businesses, affecting both demand generation and a business’s bottom line.

Here are five tips from small business owners showing how they are adapting to the rising cost of living, strengthening their business’s cash flow, and supporting their customers and clients in the process.

Supplier management

Holding higher levels of stock can help achieve lower bulk pricing. It also help to reach out and directly negotiate lower prices with some suppliers.

Work with your suppliers to ship products that you don’t need to hold at your store directly from their warehouses to your customers to avoid doubling up on freight costs.

Task automation

Upgrade your tech to implement software solutions to automate mundane tasks. Implement a custom software solution to automate mundane tasks such as  inventory management, order processing and financial management. This will not only save time for your staff but also reduces the need to hire additional personnel.

New product options

Diversifying business’s revenue streams is another technique small business owners are using to augment existing income and counteract rising expenses. Make a conscious decision to introduce a number of new, low-cost products.

“Aggressive” digital marketing

One SMEs are implementing aggressive digital marketing. With the rise of social media and online advertising, stay on top of your game to ensure your brand gets noticed.

Invest in various digital marketing strategies, such as search engine optimisation, email marketing and social media advertising, to reach a wider audience and get your brand in front of potential customers.

Customer empowerment

Many customer-facing businesses are also adjusting prices with their customers in mind, offering them the flexibility to keep costs down when needed.

Focus on providing affordable purchasing options to your customers.

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