If you’re a business owner, then you know that the cost of doing business is always on your mind. But what do you do when that cost suddenly skyrockets? Whether it’s an increase in rent, wages, or material costs, a sudden spike can be disastrous for your bottom line. Here are a few tips to help you weather the storm.
“Losing your head in a crisis is a good way to become the crisis.” C.J. Redwine
Not as much media time, comments through social media, or sympathy, but there is a real cost of business crisis – and not just a cost of living one.
Expect an intensification of ‘clench your buttocks’ , WTF, as the costs of doing business will continue to build and it will feel like kick in the financial balls. Ouch and wince!
There is no energy cap for businesses, and the eye watering increases faced by individuals is eye gouging for businesses.
In this podcast I specifically look at how to reduce and manage your energy costs.
For example, businesses that are not work from home ones (of which a gazillion exist, including mine) are facing up to a five fold increase in energy costs.
Support is out there in how deal with energy costs. However, that may feel like wearing a balaclava as someone hits you with a financial baseball bat.
Dealing with a cost of business of crisis
This episode provides more protection than a balaclava.
“When everything around you is crazy, it is ingenious to stay calm” – Mehmet Murat ildan
At the risk of understatement, a ton load of businesses are experiencing crappy times, a cost of business crisis – that order of toilet paper will need to be increased.
Unfortunately the rubbishy times are not unique to business, (Financial Crash 2008 anyone?) though the circumstances may be.
What I do know is that the best way to deal with rubbish times, is
Firstly, attitude and approach – panic is not your friend
Secondly, assessment – don’t rely on guesswork
Thirdly, options, there are always options
Fourthly, Financial-Cash flow Plan, you should be doing this anyway
Lastly, Take action – inertia doesn’t solve anything
Conclusion
So what does this all mean for business owners? We’re in the midst of a cost of living crisis and it’s impacting businesses in a big way. The good news is that there are things we can do to navigate our way through this very choppy and turbulent storm. In this podcast, I’ve outlined as best I could what a cost of business crisis is, how we should approach it and how we should deal with it.
My gift to you, a free Numbers Know How Cash Flow Guide. Check out my I Hate Numbers YouTube channel, Subscribe to I Hate Numbers now so you don’t miss an episode. My book, I Hate Numbers will change your relationship with numbers and money, in a good way. Check out what people have said, buy the book and make your own mind up, you won’t be disappointed.