Protecting your Business from the Cost-of-Living Crisis

How downsizing your office and streamlining production processes could shave overheads in a time of crisis.

The world has gone mad. If you don’t think so, then you were probably mad already. One of the most significant changes in the last few years has been the global cost rise. Big brand energy producers are squeezing the public for every cent they have. Petrol and diesel costs are twice as much as they were this time last year, and the housing market exploded in such a way that only the extraordinarily rich can afford homes. 

There is one starting focal point of all of this, and that was covid. Supply chain issues and excessive return-to-work demand were the final nails in an already wonky coffin. If we don’t act now, our small businesses face closure.

How Bad is the Cost-of-Living Problem?

The problem is global. A glance at the headlines shows us that. While all this tumult wrecks our homes, SMEs and even big business owners must find new ways to save on costs. All over the world, businesses are closing their doors because it’s no longer viable to make money. In the UK, traders fold companies left, right, and center. 70% of all pubs will close their doors by winter. In the USA, inflation hit 8%+ this year. Just to prove the global crisis, rising household debt in Thailand is causing a population crisis as nobody can afford to rear children.

How to Protect your Business from a Rise in Overheads

It’s not a total loss. There are some things you can do to mediate the damage. Here are our top tips on saving costs in your business in 2022.

1 – Rental Costs

Do you rent a building to work from? Do you have to? If you work in an office, why not ditch the rental costs for WFH? Have you considered a shared space if you must be public-facing and hire the building? This coworking space in Singapore allows office workers to share rental costs, gas, electricity, WiFi, and more. Sharing an office with a complimentary business could even draw in new leads. For example, having your vet practice share space with a dog groomer.

2 – Shipping Processes

If you sell goods over services, look at the shipping process. This is where you have wastage. For example, we don’t wrap pallets correctly if they suffer damage. With regulations being what they are, some regions won’t accept slightly damaged pallets (like the EU). To get around this, invest in a shipping consultation with a professional company and heed their advice. They can recalibrate wrapping machines, suggest cheaper alternatives with the same durability, and highlight areas where you are wasting time or money.

3 – Streamlining Production

This sounds goods-specific, but the same applies to services. Go through every step of the process of making your goods or services. Look at each stage for ways you can shave time or money off. Consider: if you speed up your factory robot arms by 1 second per item, which amounts to a saving of thousands of dollars annually. It all adds up. Automation is the way of the future.

4 – Streamline the Customer Journey

Lastly, look at the customer journey. Walk yourself through buying from your company. How could you make it better for the customer while saving for yourself? Something to think about while looking for a new office to share.

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