Many UK SMEs dream of business growth, but it can sometimes feel like an impossible ambition. Unfortunately, growth requires initial funding and outlay; whilst investors are being conservative, customers are feeling the pinch and manufacturing costs are gradually climbing, such investment funds are difficult to come by. In an ideal world, UK companies would find a way to cut manufacturing costs while working towards expansion at the same time, but is this scenario realistic? At Gener8 Finance we believe that small business funds that take the form of invoice finance services can work towards overcoming many stumbling blocks, and we can’t see a reason why they shouldn’t be used to help in this case either….
Becoming more energy efficient
In 2012 energy costs in the UK rose, which meant, of course, yet more expense for small businesses and entrepreneurs. Sadly, we don’t have any control over the cost of power and gas, but we can all take charge of how efficiently we use energy in our businesses to bring these unavoidable costs down. You’d be shocked to find out how much energy is wasted every day by companies who leave lights, PCs and other machines switched on during the night. Leaving your computer on standby isn’t good enough and wastes precious electricity (and pounds). Train your staff to turn off all their equipment before they leave the office each day and you’ll be pleasantly surprised by the savings. Every little bit really can help.
Investment in equipment
Along with energy costs, the cost of raw materials and servicing mechanical equipment have all worked together to drive up the overall cost of manufacturing. However, the good news is that you can do something to redress these costs if you purchase the right machinery. If the machinery you’re currently using is outdated, it’s probably very wasteful, guzzling too much time and money, and is likely to be inaccurate too. By switching to more modern and efficient machinery you can make sure your products are made in a way that is not only cost-effective, but reduces waste and combating the rising costs of manufacturing. These machines cost money however, but whether you plan to buy them in one payment or purchase them on credit, our invoice finance services are on hand to make sure you can cover the costs.
Offset costs through better sales
Perhaps the best way to fight back against rising manufacturing costs is to develop your business to a place where these costs no longer have an adverse impact on your company profits. Try introducing your products to new markets; this may well drive up your sales and bring more cash into the business. Increasing production and managing more contracts domestically may have the same effect. Implementing strategies to grow your business is likely to cost money in the short-term, whether the costs are in recruiting new staff, new marketing plans or even on expanding your site. Whilst financial prudence can be wise, it often pays to take a measured risk; consider whether short term loans or a ledger finance service could help you through the initial outlay.
So, in the face of rising manufacturing costs and business expenses, invoice finance services and credit management can help you to rest easy, grow your company and meet your long-term goals. Don’t rest on your laurels in 2013 – take action and make the most of our accessible and flexible services and, with our help, meet this year’s challenges head on.