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4 ways to get your business ready for economic uncertainty

Capitalise Jul 13, 2022

There’s a lot going on. From the cost of living crisis to changes within government and soaring inflation. It’s been a tough few months. Just as we left pandemic restrictions behind us, new uncertainties appeared over the horizon. But there’s time to get ahead and turn those headwinds into tailwinds that can help you soar to success.

We've got four quick ways to get your business into a stronger position. Let’s take a look.

 

1. It’s a volatile time. Be agile to change.

 

Without a crystal ball, we can’t be sure what’s lying ahead. That’s why ensuring you and your business are as agile as possible is key. 

Recent article in Elite Business says “being an agile leader and adopting different creative approaches can absolutely help businesses ride out this volatile time”. 

For example, with a third of businesses reporting their production or supply has been affected in 2022, you may have to change suppliers. And with a third of workers considering a career change this year, you may need to adapt and change working practices to suit new employee needs. 

Being a flexible leader enables your business to better deal with immediate problems. Rigid practices will make adapting to future demands difficult. Deloitte argues that this can even encourage more team-based improvisation and dynamic decision-making, revealing the real value that your business brings to your customers. 

 

2. Find ways to relieve pressure. Be strategic.

 

The Office of National Statistics reports that 35% of small businesses said they’re feeling the pressure of hefty fuel and energy price hikes. Along with making small behavioural changes as a team, it’s important to take a strategic approach, starting with an audit of your current business costs. 

Entrepreneur talks about “defining your clear growth strategy” and “staying true to your founding mission” as a way of focusing on quality over quantity. Economic uncertainty can be a great time to look at the plans you have in place, strategise and prioritise. Especially when this can encourage cost cutting.  

Revisiting your purpose and making changes can help you streamline your business and free up resources from areas that don’t need them as much as others. 

Once you audit and understand your financial position better you can really see where your business needs support. For example, in our Get Fit for Business research report we found that 61% of small business leaders need funding to achieve their goals this 2022. 

 

3. Get transparent with your staff. Create that culture.

 

Inflation and the cost of living have no doubt impacted your business. Remember that they’ve also impacted your staff. 

PWC’s latest survey of 2,000 UK workers shows 20% are expected to quit in the next 12 months. Businesses across the country are at risk of losing their staff to competition who can offer better pay and greater benefits. 

Creating a strong, positive and purpose-driven culture is key, especially since the Great Resignation is showing no sign of slowing down. Making sure your staff feel comfortable, safe and in the loop when it comes to workplace changes and processes is critical. 

The best way to ensure the right company culture starts by really understanding your staff and what they value. Why do they stay working for your business? What do they enjoy? What do they feel is lacking? The answers help you form the basis of what initiatives to stop, continue or introduce.

Take some inspiration from our recent blog post on how to keep your employees happy and healthy in the workplace. 

4. Be in control. Get a step ahead.

 

The last step may be the most critical. Staying ahead of the game when it comes to your business financial health can help you better tackle the economic changes at hand. 

Make use of tools that give you real time data and instant alerts to keep you up-to-date. You’ll reduce the risk of being faced with unexpected issues that you can’t deal with swiftly. 

With Capitalise for Business Pro, you get all your finance insights right where you want them. To help your business grow, no matter what the economy throws at you. You’ll have access to your full credit profile and everything impacting your business credit score, including payment performance and credit risk. 

 

Here’s how it can help you weather the economic storm ahead:

  • Understand your credit score and see what’s impacting it. That way, you can make positive changes to improve. With a better score, you can negotiate better terms with your suppliers. Your business will also be attractive to prospective customers – at a time when businesses are being more careful with who they work with. 

  • Improve your score and unlock better funding opportunities. Get cheaper funding when you're actively tracking and improving your score. As prices soar, access more funding more easily to bridge any cash gaps. 

  • Monitor the businesses you work with. With rising costs impacting businesses up and down the country, it’s worth keeping an eye on your supply chain. By credit checking the businesses you work with, you’ll have a good sense of whether your invoices are likely to be paid – and on time. Or how much trade credit you can comfortably offer.

 

Give Capitalise for Business a try and see the difference it can make in the way you tackle the economic landscape ahead.

 

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