Business owners are not exempt from the effects of inflation, but unlike waged individuals, they may have more options to increase cash flow. Here’s a few ideas you may like to consider:
- If you have slow-moving or dormant stock sitting on your storage racks, consider a sale. Anything you can convert into cash will have a positive impact on cashflow.
- Are staff fully utilised? If not, could you offer short-term placements via employment agencies? Failing this option, do you need to consider redundancies?
- Do you have unused storage or production space that you could rent for short periods?
- Are your company vehicles fully utilised? Could they be hired to other firms on short-term hire contracts?
Wage earners will have other options to increase their monthly cash flow. For example:
- Taking on a second job, albeit part-time.
- Make a list of all those unwanted items languishing, unused, in your loft, outhouse or storage spaces and consider selling on E-Bay or similar platform.
- Could you let out your drive 9am to 5pm to workers unable to find regular parking spots in your area?
- Do you have underutilised equipment that you could hire out?
And earning £1,000 or under in a tax year from either renting out part of your home or selling/hiring under-utilised assets is tax free.
And finally, if you have spare rooms in your home, you may be able to rent these tax-free as long as annual rents received do not exceed £7,500 and you are resident in the same building.
If you would like to expand on any of these ideas, be happy to discuss your options. Please call.