One in five UK SMEs are adjusting their targets due to financial pressures, according to the The Association of Chartered Certified Accountants (ACCA UK), and 25% are predicted not to survive rising costs and interest rates over the next 12 months.
It looks like the long winter is already here, but what can we do to survive it?
Smart management of your employee headcount
There’s a new story every day about Big Tech layoffs, and they’re just the ones making the spotlight.
With static or declining head count, businesses can find it challenging to keep up the pace of innovation required to thrive in a competitive landscape.
Instead of achieving growth through increasing the size of their workforce, businesses must find other ways of improving the value of products and services or risk stagnation. One approach is doubling down on your core business value and providing more of it, i.e. do what you do best and do more of it! Alternatively, free up your employees’ time so they’re able to achieve more in the day, which effectively increases headcount at no extra cost
Smart management of your cashflow
The cost of living crisis has made previously accurate cashflow forecasts useless and unanticipated cashflow problems are causing businesses to rush to find temporary solutions which can often be detrimental.
Adsum’s recurring VAT advance enables UK SMEs to solidify their cashflow by providing a buffer against the rising costs of inflation. Enabling businesses to avoid cutting costs and grow their top line by staying focussed on providing value to their customers.
Running out of cash is becoming a bigger issue for businesses. Before 2022, companies running out of money could get a government bounce back loan, or borrow from their high street bank. With soaring interest rates and the end of the government’s bounce back loan initiative, UK businesses are left in a tough spot.
How to grow your business this winter
It’s time to look to innovative new finance partners to help deal with the next 12 months. Choosing the right partner will help you solve existing problems, not just push them further down the line. Get it right and, come the end of this winter, you’ll be in a better place than ever to make the most of the business growth opportunities that will present themselves.