The small business economy in the UK is huge, accounting for 99.2% of the total business population and serving as a key economic engine on these shores.
However, SMEs on these shores face multiple challenges in the current climate, from the pandemic-related recession, the rise in inflation and the continual disruptions to the supply chain.
These exist alongside a number of universal challenges too. But what steps can you take to overcome such challenges and achieve growth across a challenging backdrop.
#1. Create Inflation Beating Prices
Inflation peaked at 9% during April in the UK, the highest level for 40 years. While the cost of living is soaring, however, businesses may still be able to adjust their business model to revive their fortunes going forward.
One step is to review your pricing, as you may be able to introduce discounts and share savings directly with customers. Similarly, you could create limited-time promotions that discount targeted goods, based on their individual pricing and popularity.
Similarly, you could look to reduce operating costs where possible, in order to pass these saving directly onto the consumer.
#2. Secure Flexible Loans Where Needed
If you’re continuing to suffer from the coronavirus and its associated lockdowns, you may well require some funding to help consolidate to create growth within your venture.
However, borrowing may be a little less accessible in the current climate, particularly as lenders themselves count the cost of the pandemic and create more stringent rules about how they judge applicants.
You may also have issues in instances where you credit has been adversely affected during the pandemic. You can overcome this issue by accessing bad credit loans, however, which are more accessible and inclusive.
Ultimately, you’ll need to consider your options in detail, while striving to minimise long-term debt within the business.
#3. Embrace Technology
You may also find that your business is struggling with productivity, especially if you’re finding it hard to create a model that adapts to the rise of hybrid working.
Make no mistake; this is the future of the workplace, with more than 60% of Brits now favouring a hybrid work model that sees them split their time between their home and the office.
If you’re going to acquire and retain the top industry talent, you’ll need to embrace technology (particularly remote communication and management tools) that make remote working as efficient as possible. Without this, you’ll struggle to keep pace with evolution and meet the needs of your employees in the digital age.
Of course, you can also use technology to streamline particular business and administration processes. Take accounting, for example, with various software packages available to help you centralise your payroll, automate payments and utilise employee data in the best and most secure manner.