The experts at SumUp the global fintech for small businesses, share their advice on how businesses can stay successful through the cost-of-living crisis:
Embracing technology
As economic difficulties mean that small businesses are now facing higher costs than ever, operating efficiently is rising up the priority list. Many small businesses can take longer to embrace technology, whether because of a hesitance to change familiar processes or due to a perception that technology can come with higher costs. However, for businesses looking to flourish in the long term, embracing technology can be the best way to make sure the day to day running of the business is as effective as possible. This may mean streamlining your process at the till by accepting different payment types, automating your reservations system or phasing out paper receipts; the important thing is to be on the lookout for new ways that affordable technology can help to make your business more efficient.
Creating loyalty
Loyalty schemes can often be seen to be the reserve of big high street brands, but they can also be a great option for small businesses looking to increase repeat custom. A rewards programme doesn’t necessitate prohibitively expensive technology, and Point-of-Sale tech created for small businesses is increasingly catering for loyalty schemes. While many people might pop into a local business every once in a while, offering something in return for a repeat visit is a good way to encourage customers away from larger outlets and towards the businesses in their community.
Forming partnerships
Collaboration is at the heart of entrepreneurship and cooperation between small businesses can help to boost both enterprises during the cost-of-living crisis. This might mean looking for ways to partner with a similar local business to direct customers towards each other, whether that is simply through advertisement by offering vouchers for each business. Other ways to create useful partnerships can be through social media giveaways or competitions to promote awareness of your brand in the local community, with each business sharing their audience. You could even host a joint event to attract increased footfall, if your business lends itself to the purpose.
Local suppliers
Amidst the economic downturn and the supply chain chaos that has accompanied it, many businesses will have lost out because of delayed deliveries or unavailable products. This can be a particular issue for smaller businesses, who are less able to make last minute deals with alternative suppliers and absorb the excess cost. If businesses are looking for ways to reduce their exposure to supply chain issues in their regular deliveries, then one good option is to look local for suppliers. This allows SME owners to reduce the number of opportunities for disruption during the delivery process, as well as allowing them to offer support for their local business networks.
Regular finance checks
While the importance of keeping an eye on the financial health of your business may seem obvious, this is something often forgotten by some micro-business leaders. Being able to quickly respond to the pressures of the cost-of-living crisis, whether that is by seeking additional funding, raising prices or through other measures, is key to making sure that a business remains adaptable and resilient through economic turmoil. This might mean itemising outgoings and revenue on a rolling basis so that it can be reviewed regularly or taking an even more active approach by tracking KPIs to gain an idea of your business’ health across different areas. The key is always to ensure that any issues are not left to grow until they become unmanageable.
