In its most recent report on inflation, the Office for National Statistics (ONS) stated that the headline number increased by 9% in the year ending in April 2022.
This is alarming for everyone as this the biggest increase since 1982.
What is Inflation and how does it affect my business?
Inflation can be thought of as the gradual loss of buying power, and refers to the increase in the price of something over a period of time.
Some industries have suffered during the pandemic, while others have prospered. Businesses in the E-commerce, digital entertainment, and healthcare sectors have done exceptionally well, but the hospitality, travel, and fashion retail sectors have seen significant declines.
Similar to how the pandemic had a varied impact on each industry, each business will experience inflation in a different way. Here are some issues that businesses are experiencing throughout the UK:
Supply Chain Issues
As gas costs continue to climb and business owners look for ways to acquire supplies as cheaply as possible, inflation can cause problems in the supply chain. These manufacturing delays and eventual revenue declines might be caused by supply chain bottlenecks.
Shortage of Raw Materials
Businesses may unintentionally cause a shortage of raw resources as they look for ways to get products at the lowest feasible cost. This can result in production delays and a drop in sales.
Changes in Consumer Spending
As customers' purchasing power declines, they are more likely to reduce their spending and as a result, businesses that depend on consumer spending may see a drop in revenue.
In conclusion, businesses must learn how to take advantage of the digital landscape, and perform a spending review to analyse their alternatives in order to maximise their control of their finances in the long run.
How we can help your business now:
Here at PSP, we have a team of experts consisting of consultants with over 10 years' worth of experience working within this field. With our help, you can reduce expenses and begin to regain control of your business finances once again.
Our Place Saving service is run throughout the UK at selected Business Improvement Districts. If you are a member of a BID, find out if our services are available at your BID.
If these services are not available, you can also send a copy of your bills to the email address below. This way, our team of experts can review your bills and identify any discrepancies which would cause you to spend more.
We understand the challenges that each and every business owner faces, so get in touch with us today at 03330 156 289. Alternatively, you can simply send an email to info@placesupportpartnership.com.
The idea of inflation can be frightening, and it can have a significant short and long-term impact on your business. Don't struggle alone and reach out to us today.