When growing a business, there are a lot of obstacles to navigate. Some are bound to finances, while others are reliant on the current state of the market.
Spotting these barriers is one thing, but putting actionable plans in place to start dealing with them is another thing entirely.
If you’re feeling overwhelmed by these barriers, we’re here to help. Here are some tips to help you identify and break through your business’ growth barriers.
Our most recent Aldermore SME Growth Index research* revealed that 92% of businesses are facing barriers to growth right now, with a few aspects being hailed as the most pertinent issues to running a business over the next 12 months. These are:
We look at the specific issue of inflation for businesses in our other blog, which you can read here.
In recent years UK businesses have witnessed a gradual increase in energy costs. Largely brought about by changes to wholesale energy prices, energy costs have become a much more substantial cost in business. If this is affecting your business, here are some ideas to consider…
Relying on old equipment is one way to see your energy costs escalate. Especially in sectors like construction and agriculture, antiquated tools and machinery can mean over-inflated energy costs compared to modern, more efficient technologies.
While replacing this equipment can come with an upfront cost, over time, the savings made with lower energy consumption can more than make up for it.
In a bid to become less reliant on energy rates, businesses can also explore alternative sources of energy from things like solar panels and hydrogen. These too come at a high upfront cost, but as-is the case with efficient equipment, the long-term returns can make this a worthwhile investment.
To stop rising energy costs in their tracks, businesses could consider installing more efficient materials throughout their establishments. Upgrading insulation, installing energy-efficient lighting, and instructing employees to be energy-conscious will all go a far way in reducing both overall energy consumption and energy bills.
Materials are a cost that all businesses face in one way or another, and with 27% of businesses flagging rising costs as a barrier to their growth, it’s certainly something that needs addressing. There are ways to be less reliant on fluctuating material prices, here are some tips…
Buying products in bulk is a good way of securing discounts which can sometimes counteract pricing markups. While this will mean that you’ll have more stock on hand, which can be a challenge when it comes to storage, this isn’t necessarily a bad thing if managed properly.
If your supplier’s pricing has become unmanageable, try speaking to them. With some negotiation, it may be possible to arrange a long-term solution that is beneficial for both parties. Your business will benefit by paying slightly less, and your suppliers will benefit from the guaranteed income for a prolonged period.
Another option is to shop around to see what is being offered by alternative suppliers . There may be a better price elsewhere that you haven’t discovered before, or someone willing to outdo their competitor by giving you a better deal.
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*Source: Research conducted by Opinium on behalf of Aldermore between 16 – 29 April 2024 of 1,000 SME Senior Decision Makers.
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