The cost of living crisis is affecting people, their lifestyles, and their businesses in the UK.
That hasn’t, however, stopped business owners in Manchester, as the northern metropolis was named the best city for business activity in 2022, living up to its reputation as the hub for worker bees.
We’ve provided some useful tips for businesses below, as well as tips for managing the cost of living crisis.
Monitor the economy
The economy is constantly changing.
The cost of living crisis is proof of this as inflation continues to rise faster than wages and benefits.
For business owners, it means spending more on stock and increasing wages.
Doing this and doing it well are two different things. Finding a way to live sustainably in the cost of living crisis is key.
Luckily, business owners can monitor the economy via the economic calendar, which provides a forecast of key economic events.
From inflation to energy prices, and the price of raw materials to retail prices, businesses are able to use the calendar to their advantage to understand when it’s best to invest in things like stock.
With details for numerous countries, the calendar provides year-on-year and month-on-month figures demonstrating how the economy changes over the course of time, proving useful to the movements of a business.
Assess costs
As prices begin to increase, businesses will find themselves spending more than they did before.
From operational costs to phone bills, it all adds up and if not careful, businesses could find themselves low on cash.
Even without inflation, assessing existing costs is the best practice to ensure you’re getting value for money.
But, this is now more important than ever.
Identifying costs that can be cut or sourcing cheaper alternatives is a good way to start.
If you find that a marketing strategy isn’t delivering results, then consider cutting it, and if you find stock that is better value for money, try swapping it.
Monitor energy usage
One major player in the cost of living crisis is the price of energy.
Since 2021, the demand for oil and gas has surged, and combined with uncertainty over supply, prices have continued to soar.
Energy is needed to run a business so it can’t be cut completely, but there are ways you can use energy more sustainably.
Examining your energy use is a good starting point as it can allow you to identify where energy is being wasted.
From turning equipment off when not in use, to using appliances that are energy efficient, a few small changes can make a noticeable difference.
To monitor usage, it’s advised to install a smart meter – that way, you’re never in the dark.
Source goods domestically
Monitoring energy usage isn’t the only way you can be sustainable.
Choosing to source goods domestically can help your business and the economy in the long run too.
Over the past few years, the economy has faced reduced shipping capacity and therefore, increased global shipping costs.
Opting for a domestic supplier not only means reduced costs, but a better carbon footprint too.
Manchester is home to an eclectic mix of businesses large and small. Using these tips in the midst of the cost of living crisis will hopefully pave the way for more sustainable businesses across the area.
