Has the cost of living crisis made you more business savvy?

Posted: Wednesday, 31 May 2023 @ 10:04

Necessity is the mother of invention, or so the adage goes, and it proves itself correct time and again. The various challenges facing businesses at the moment and over the last 12 months have been no exception - whilst creating a difficult commercial landscape for many, they have also forced some organisations to adapt working practices, and in many (not all) situations, it can be for the better.

Business without boundaries 

While we all like to operate without limits, boundaries are almost inevitably a good thing. If you have a limitless budget it can lead to a lack of strategic decision making, or wasteful behaviours that ultimately don't do anyone any good. The current cost of energy has been a case in point - something that many of us didn't think too much about before has now come to the forefront of our attention.

The Independent wrote recently: "Two-thirds of small business owners say they have adopted more cost-saving working practices over the last 12 months to reduce their energy bills." 

They also reported other changes, saying small business owners or decision-makers have made an average of six tweaks to save energy, including:

  • Going paper free
  • Turning down the temperature on the boiler 
  • Only running the dishwasher when it is full
  • Using energy-efficient lightbulbs
  • Not over-boiling the kettle
  • Investing in new technology to reduce daily costs in the long run

Rethinking business practices 

While no one wants to be in a position where they're making changes to operations because they are worried, sometimes it's apparent problems that force us to reconsider our practices and become better, more resilient, more ethical or more streamlined. For example, we all know that as businesses and as individuals, we should be doing our level best to reduce energy consumption and waste, both now and in the future. 

We all know we should reconsider our methods from time to time. Even the most forensic of business owners are likely to find that there are areas where they could reassess elements of their business, whether it’s updating our thinking or our technology and equipment in order to be more ethical, more efficient and, as a result, perhaps more profitable.  It begs the question, could economic challenges help some of us to actually run our companies better? 

In recent weeks we have spoken about making cash flow easier in businesses through the strategic use of leasing and loans. Equally, asset finance can also open avenues to bringing in the most beneficial equipment for your business when you need it or will benefit from it most without having all your capital tied up in it. It’s not just reconsidering what we do but how we do it that can make the difference between a highly functional business model and one that struggles. 

Have economic headwinds galvanised your thinking when it comes to business operations and financial management?

Find out how Rivers leases and loans could help you

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