Survived the corona crisis as an entrepreneur but now the company must also survive skyrocketing inflation. Tomorrow, today’s purchase prices will already be different and customers risk walking away because of the high prices. I therefore have tips to ensure extra cash during these exceptional price hikes:
Get more sales volume
Higher purchase prices mean higher selling prices. It is not advisable in all cases, as it may cause customers to choose a cheaper alternative. It can be very smart to bet on higher sales volume so that suppliers are willing to supply the product at a better (read: lower) price. For example, sales volume can be increased by actively and personally recommending the product to customers.
Corona tax debts
The corona debts to the Tax Administration can be repaid earlier than the 60-month timeframe that exists in principle from October 2022. The advantage of earlier repayment is that it saves on collection interest. If the conditions are met then a different repayment period can also be chosen, for example:
- one payment break of 6 months or 2 quarters;
- repayment quarterly instead of monthly; and
- repayment in 84 months instead of 60 months.
Provide warm clothes
Give your staff a nice warm cardigan with a company logo for the cold days but make sure this ‘gift’ meets the requirements (generally including the working expenses scheme) of the HMRC (Tax Authority) so that the cost can be claimed as a business expense.
It is always advisable to spread risks and not be completely dependent on one supplier, for example. It is especially important in these times to be keen on this so that, if the supplier fails, there are still alternatives to place orders.
In this day and age, making things more sustainable brings immediate money. For example, the Dutch government has subsidies for making fleets more sustainable, among other things. When making a new investment, it is important to check carefully whether subsidies are available. Your supplier, but also your accountant, can tell you more about this.
Steer by figures
How is the business doing today?
It is important to be up to date and with AAME’s dashboard, you can always do that. My colleague Maurits previously wrote about these dashboard options.
Feedback from our clients shows that an analysis on costs and own dashboard is very useful so that one can immediately see where profits can be made.
I have a great example from this feedback: client A told us that profits were under pressure because of high accounting costs, but a good analysis of all costs quickly made it clear to the entrepreneur what the real reasons were for the drop in profitability.
Especially in this day and age, it is important not to steer by ‘gut feeling’, but above all to look at the actual figures to see where these costs are.
I stand ready to make this analysis.