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Business costs are rising fast. The good news is that there are some great options to help a canny entrepreneur ensure their start-up gets through its teething stages.
So what’s with the Rising Costs?
It’s energy, mainly. Utility bills are surging, just like they are for households. But it’s not just this. On top of the unprecedented energy price hikes, there are other costs such as the growing price of certain raw materials, as supply chain problems hit home.
As well as this, businesses are seeing a rise in wage costs as they struggle to retain staff in a jobseeker’s market.
What are Businesses Doing in Response?
Unfortunately, one common response has been to raise prices. After all, there are only so many costs a small business can absorb. The price it charges for its products is usually the business’s main income stream, so it makes sense to raise it. This is why 24% of UK businesses are still looking at raising their prices as of August 2022.
But nobody should be under the impression this is the only path open to start-up entrepreneurs.
Address Marketing Spend
Sometimes cutting on marketing can be a false economy. But do look at where it can be applied most advantageously.
It’s often the case that novel approaches can have an impact way out of proportion to their cost. For instance, clever out-of-home advertising can transform a company’s fortunes. For guidance in this area, it’s worth looking at a Clear Start product. Alternatively, consider other economical options such as content marketing and social media UGC.
Don’t just cut staffing – you might eject the very people most likely to help you through this. Review who’s doing what. Are the right people in the right jobs or could you productively swap them? Maybe just temporarily? Or can you adjust a colleague’s duties slightly?
Here’s the key factor to bear in mind, whatever the economic climate: play to your strengths. Start-ups are by their very nature smaller in size than their more established counterparts. This might be considered a weakness, but that’s just a matter of mindset.
The biggest strength a smaller company has is its agility. It’s much easier to donut a mini than a tank.
So, you can use your fleet footedness to respond quickly to fluctuations in demand and market conditions. You’re more in tune. You can scale up or down immediately, as necessity dictates. You can also deliver timely training to deal with new situations, as well as inculcate a whole new culture should you need to.
At the end of the day, if things aren’t working, you can maybe re-brand the whole enterprise. OK, it’ll be major, but not as major as it would be for McDonalds.
Finally, Be Bold
Overall, don’t allow unfavorable conditions to sap you of your enthusiasm. Things may be tough, but that shouldn’t put you off completely. You relish a challenge – that’s why you got busy with the start-up in the first place. It may be true that 20% of start-ups fail in their first year, but that means 80% survive, which is encouraging. So, buckle up and let’s go.