For many SMEs here in the UK, business growth can seem like an impossible dream in the present climate, particularly with small business funding often so difficult to access. Investors are largely conservative, shoppers are keeping their money in their pockets and to make matters worse, manufacturing costs are steadily on the rise. Ideally, Britain’s businesses would be able to reduce their manufacturing costs and strive for expansion at one and the same time, but is such a goal even possible? Here at Gener8 Finance, we think that invoice finance and discounting services can be used to overcome the vast majority of obstacles, and there’s no reason why they can’t help in this instance, either…
Improve energy efficiency
2012 has been a year of rising energy costs in the UK, and these represent yet another significant expenditure for the country’s small business owners and entrepreneurs. Unfortunately, there’s nothing we can do about the cost of electricity for power and gas for heating, but we can at least make our businesses more energy efficient and reduce those annual costs. You’d be surprised at how many offices and manufacturing plants leave lights, computers and machines switched on overnight. Even monitors left on standby can eat up valuable electricity, so you need to ensure that your staff members turn off all the relevant equipment before they leave each evening. Every penny helps, and you’ll be doing your bit for the environment too.
Invest in equipment
While the rise in energy costs, the price of raw materials and even the cost of mechanical servicing have conspired to drive up manufacturing costs in recent years, it’s possible to mitigate those expenses by investing in the right machinery. Your manufacturing machinery may very well be out of date, and if so, it’s likely to be excessively wasteful, time consuming and inaccurate. By investing in new machinery you can ensure that your products are manufactured in a more cost-effective way, minimising wastage, increasing the profit margin on each item and reducing the impact of those rising manufacturing costs. Of course, these new machines will cost money, and whether you’re looking to buy them outright or pay for them on credit, our invoice finance services will be able to help you cover the costs. The decision to replace outdated machinery is often a difficult one to make, but despite the initial outlay, it can pay off in a short period of time with decreased production times, improved accuracy and better energy efficiency.
Offset with greater sales
One of the best methods of combating growing manufacturing costs is to simply grow your business beyond the level where they can have an adverse effect on your profits. Bringing your products to new markets and territories will enable you to increase your sales and bring more money into the company, as will ramping up production and meeting more contracts domestically. Any attempt to grow your business will inevitably cost money in the short-term, whether it’s spent on new staff members, dedicated marketing activities or even expanding your premises. Invoice financing can give your company the short-term injection of capital it needs to explore sales opportunities that would previously have been denied you.
Invoice financing and credit management services can help to give you peace of mind in the face of rising business expenses and can even help you to grow and meet your goals in the future. Don’t leave 2013 up to chance – take advantage of our flexible services and overcome any challenges the year ahead may hold.
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