Keeping your business costs down
There is some evidence that economic conditions in the UK are starting to improve, and you might have noticed a rise in demand for your decorating services. However, it’s by no means plain sailing for firms like yours.
According to new research from the Forum of Private Business (FPB), the costs associated with running enterprises are rising. This may mean it’s particularly important for you to source great value decorating supplies. By saving money on these resources, you can make balancing your books that bit easier.
A worrying trend
According to the latest research from the FPB, business costs have continued to rise in 2013. Perhaps unsurprisingly given all the media focus on this issue at present, energy costs were the most commonly seen increase.
In its Cost of Doing Business survey, which was carried out among its members, the organisation found that 94 per cent of firms have seen an overall increase in their business costs. Meanwhile, 87 per cent of respondents said they had witnessed a climb in their energy costs and 83 per cent noted a hike in transport costs. Rises in marketing costs and the cost of raw materials and stock were identified by 83 per cent and 78 per cent of firms respectively.
Unable to pay
The FPB also found that 41 per cent of small business owners admitted to not being able to pass rising costs onto their customers, forcing them to reduce their own costs to keep prices static. Only two per cent of respondents were able to pass the cost rises on in full.
In addition, it was revealed that 81 per cent of firms believed rising costs have been detrimental to them, while 73 per cent have had cash flow issues as a result. Furthermore, 51 per cent of companies stated it had hampered investment, while the same proportion revealed it had had a negative effect on employment levels. More than six in ten respondents (63 per cent) stated that rising costs are inhibiting their plans for growth.
Remains an issue
Responding to the findings, FPB head of policy Alexander Jackman said: “The major reasons for increases in prices are predominantly down to transport and energy prices rising, coupled with the continued weakness of sterling for importers. The economic outlook may be better but costs still remain an issue for our members and a key focus of our lobbying and support services.
“Unfortunately, it doesn’t look as if there is going to be any respite from energy hikes any time soon, despite the ongoing political pressure to take action to introduce more competition in the market, with many of the major players recently announcing significant increases and others expected to follow suit.”
A proactive approach
You might have no influence over macro-economic trends, but that doesn’t mean you can’t take action to bring down your business’ costs. For example, by coming to us for your paint brushes, decorating tools and other decorating supplies, you stand to save yourself all-important cash. We go out of our way to offer superb value for money.