How to handle Doom & Gloom in the Irish Economy?
There is so much doom and gloom in the world at the moment. The noise around has put many people re-evaluating their current personal and business situations. There are so many factors to consider, such as:
• rise in inflation (10.7% Oct*),
• rise in interest rates (2.44% Sept^),
• poor performance of the EURO against the US dollar (0.98 against USD)
• the global economy is on target to hit a recession,
• rise in energy and oil prices
• and the new UK Government (third prime minister in 7 weeks)
All these factors can be unnerving for business owners in Ireland.
We can’t ignore these factors because it could be detrimental for businesses. So what should you be doing…
- Start reviewing your current market – identify where the opportunities are and where to focus your energy. You may opt to narrow down to focus on core markets or products. Some businesses may try to identify new opportunities by entering new markets.
- Increase Marketing – the top companies see this period to outperform their competitors by increasing brand awareness to their target audience. You may want to consider increasing your marketing efforts. Digital marketing allows you to reach your audience easily but you want to keep track of your return on investment.
- Cutting costs in your business – It is really important to know your financial numbers as well as your key performance indicators (KPIs). Monitor these numbers and run some analysis to identify areas where you believe you can cut back on expenses to stay on track.
- Opportunity to review Operations – Reviewing your systems will help you identify ways in your current operations to streamline and gain efficiencies. Often, businesses find ways to refine processes that provide significant benefits and financial gains.
- Securing existing contracts – If you have existing clients, now is the time to reach out to them to keep an open dialogue. The more you try to understand their needs, the easier it will be to meet their requirements or change the way you deliver your services.
- Supplier Partnerships – Supplier relationships are like marriage partnerships, so it is important to work with them closely so you can deliver to your customers. You can negotiate terms and delivery of products and services.
- Financing the Business – during tough economic times, businesses will require funding. The type of financing required will vary depending on your business situation and cash flow. If you require funds to conduct work, you may look at trade finance if you are selling goods or invoice finance if you are waiting for clients to pay you on outstanding invoices.
The key is to gather as much information and not delay making decisions. Speak with experts to help you with information.
At FiFo Capital, we can assist you with understanding your finance requirements. We are experts in cash flow finance.
Now is the time to speak with a Financial Specialist and discuss your current and future financial plans for your business. At Fifo Capital, our experts can help you deal with inflation. Contact FIFO Capital Ireland today.