Businesses around the globe continue to feel the pinch of the economic crunch. Is your business in this situation? We take a look at how you can gradually improve on the situation.
Cut the financial outflow where possible
Many businesses are struggling today because they did not take the opportunity to cut down on expenditure. Over time, the effect of this, coupled with worsening economy of recent years and the current holding back of sustainable growth, can put a business in a tough financial position. In what ways can you turn the financial corner and have a more profitable 2015?
- Cutting the tax bill
It doesn’t matter what kind of business you run – taxes are always a challenge. Talk to your accountant to explore every possible means of cutting down on your tax bill. They will know the best ways to help cut your tax bill and can outline the best options available. It always pays to use a professional tax accountant.
- Reduce cost of common purchases
Some businesses are paying very high prices for recurring purchases, and over time this will burn a hole in their finances. You can reduce your spending on vital purchases by as much as 40% by better negotiations and searching around more for the best deals. Imagine cutting 10% off your most regularly purchased supplies. The amount saved can add up to a tidy sum that can be moved elsewhere in a bid to improve cash flow.
- Look for better deals on gas and electricity
Energy price increases are one of the main reasons why many businesses have continued to struggle. It is left to you to ensure that you cannot get cheaper prices with another provider rather than sticking it out with your current provider. Sites such as Which4U.co.uk will be able to show you the best deals on everything you use, from utilities to telecoms.
- Cut down on your technology expenses
Do you really need hi-tech computers in your office? Is there need to continue paying for fibre-optics, or a dedicated line? Take a look at your business needs and cut costs if you can still achieve your business goals with cheaper hardware.
Seek peer-to-peer funding
If you have already taken cost-cutting measures and you are sure that you cannot save more by cutting costs, the next thing to do, perhaps, is to look for a fresh injection of funds. Going down the peer-to-peer route at this stage could be better as it often guarantees better lending rates and better repayment terms and conditions. You may find it hard to secure funding, however, as your business will be considered high risk at this stage.
Seek professional help
Sometimes all your business really needs is help from professionals like Joe Giannamore, the founder and co-managing partner at AnaCap Financial Partners. This is the company to turn to if you have tried everything possible to revive your business. The company has the ability to see where you are getting wrong. It has helped to revive hundreds of businesses with its injection of funds so you can be sure your own business won’t be any different!