6 tips for SMEs to fight rising costs of running the business
by Gosia Furmanik on December 15, 2022
Small and medium-sized enterprises (SMEs) play a crucial role in the economy, accounting for a significant portion of the workforce and GDP in many countries. However, SMEs face many challenges, including rising costs of doing business. In this article, we'll discuss six tips that SMEs can use to fight the rising costs of running their businesses.
Six tips for SMEs to fight rising costs of running the business:
Review your expenses: Start by reviewing your expenses regularly and identifying any areas where you can cut costs. This may involve renegotiating contracts with suppliers, finding cheaper alternatives for goods and services, or reducing unnecessary expenses.
Implement cost-saving measures: Consider implementing cost-saving measures such as energy-efficient lighting and equipment, reducing paper usage, and encouraging remote work or flexible schedules for employees. You might want to look into costs associated with processing payments for your goods or services. If you are after a more cost effective way of getting paid, Open Banking payments offered by fena save our clients up to 85% on their payment processing fees.
Focus on productivity: To get the most out of your resources, focus on improving productivity by streamlining processes, reducing waste, and optimising inventory management. Introducing automation for your business is another way to increase productivity.
Explore new revenue streams: Look for opportunities to diversify your revenue streams by expanding your product line, exploring new markets, or creating new services. Look into adding new sales channels. Together with automation of your processes you can increase your revenue without significantly increasing your cost base.
Use technology to your advantage: Leverage technology to improve efficiency and reduce costs. For example, consider using cloud-based software and tools to automate routine tasks, reduce administrative overheads, and increase collaboration. Fena offers a suite of cloud-base tools that could save you money on hiring junior admin staff and automate operations.
Invest in training: Investing in employee training and development can help you improve efficiency and productivity, reduce turnover, and build a more resilient and adaptable team. This can include training on new technologies, process improvements, and soft skills.
In conclusion, small and medium-sized enterprises (SMEs) can face many challenges, including rising costs of doing business. However, by implementing the six tips discussed in this article, SMEs can take steps to reduce costs, improve productivity, and build a more resilient and adaptable business. By focusing on cost-saving measures, productivity, revenue streams, technology, and employee training, SMEs can not only survive but thrive in today's challenging business environment.