According to the Small Firms Association (SFA), viable Irish businesses may be forced to close their doors as they are unable to absorb rapidly rising business costs. Small Businesses are suffering as a result of rising inflation and find themselves stuck in the middle between customers who are demanding value and rising inputs.
A new SFA report highlights that the average small business encounters costs of €138,814 per month. Micro-businesses with less than 10 employees face monthly costs of €66,426 while companies with less than 50 workers face €193,535.
The survey outlines that businesses have seen price rises in many areas of their business such as technology, labour costs, and most notably energy which has seen a 33% increase over the course of the last 2 years.
Many small businesses operate in low-margin environments meaning that it can be difficult for owners to absorb the rising cost increases and the customer's demand for value along with the need to stay in line with competitors makes it difficult for businesses to raise their prices in response.
However, despite this economic downturn, business owners can make savvy moves as they focus on things that are in their control.
Cut Back On Unnecessary Expenses
How many times have you purchased something as a company and used it for a short period of time before the newest technology was released? In a response to this business owners have had to either stick with the expensive equipment due to their financial commitment or take the hit and purchase the newest model to keep up with the competition.
Investing financially into technology can be a risky decision considering that they are constantly being upgraded in the hope of better functionality. Leasing equipment is a great option for startups and small to medium-sized businesses as they can control how long they use the equipment before swapping it for the latest technology. At Grenke, we can guide you through the leasing process to find the best option for your business amidst rising costs.
Analyse Your Business
As a business owner, you may think you know the ins and outs of your business, however, it is a good idea to take a step back and analyse everything to find if there are areas where expenditure is being wasted. Learning every little detail of the company’s processes can provide you with new knowledge which allows you to discover redundancies and inefficiencies that are dragging the company down. It’s easy to blame business struggles on the economy, but unfortunately, the economy isn’t to blame for everything.
Talk to your employees and gather feedback because they are best positioned to speak about the business and what they feel can be improved and what can be removed to improve efficiency and save funds. Analysing your business can be a stressful and time-consuming process, but it can be a very good use of your time as you begin to properly understand aspects of your business that are dragging you down which can be fixed through more informed decision-making.
Look To Renewable Energy Alternatives
As aforementioned, the price of electricity has dramatically increased over the last couple of years and it has forced business owners to rethink their overhead costs. A suitable and straightforward alternative energy source is solar energy which has become more accessible to small and medium-sized businesses as a result of leasing with companies such as Grenke.
Solar panels are no longer the luxury experimental item they once were, and the associated technology is advancing all the time. The installation of solar panels can help reduce utility bills, has important environmental benefits, and increases energy security and independence.
Grenke makes it easy for small and medium-sized businesses to work with the most up-to-date technology without having to fork out loads of money to purchase this technology upfront when you can lease and take better control of your business.
Talk to GRENKE today!
As one of the leading financial service providers in the Irish market, GRENKE’s slogan is ‘Fast, Forward, Finance’. GRENKE offers entrepreneurs fast and flexible financial solutions through a range of services including leasing and invoice finance. We match the perfect financial solution to your unique business needs, from small businesses to large enterprises.
Over the last 40 years, GRENKE has provided leasing to numerous styles of businesses and organisations; sole traders, partnerships, public and private limited companies, associations and organisations, medical, health, and educational providers, municipalities, public hospitals, semi-state institutions, Government bodies and so much more.
Our expertise and strong market position are no coincidence. If you are a business owner looking for financial solutions in Ireland or advice on fast and flexible financing, talk to a GRENKE Account Manager today.