Issue #103 - More price hikes on the way? 📈
How is your business dealing with rising costs? | Time of use tariffs | Can the location of your business affect your insurance prices and cover? | 3 businesses, 1 question | Words | Tunes | More
Everything is springing up 👆
Welcome to Issue #103 of The Backbone. The free fortnightly newsletter from Bionic
Let’s start with the good news - the days are getting longer and warmer, the dawn chorus is back, and the first spring buds are blooming. Lovely stuff.
But it’s not just flowers that are springing up, it looks like prices are pushing up again, too (if you ever read a more forced analogy than that, please do let us know) - the energy price cap is going up next month, and inflation is on the up again. Food inflation hit a five-month high last month.
New research from Shawbrook, a specialist lender, reveals that a third (33%) of SMEs have said they plan to increase, or have already increased, the prices of the goods or services they offer.
But it’s not just rising prices that SMEs have to contend with - staffing costs will be more expensive from next month as National Insurance Contributions (NICs) increase from April 6.
More than four in ten said the NICs increase for employers will negatively impact them. Nearly a fifth (18%) said the consequences would be “significant”.
As well as putting up prices to cope with rising costs, three in ten (30%) said they will have to cut costs, while more than a fifth (21%) will stop hiring in 2025.
As part of our 3 Businesses, 1 Question series, we’ve asked business owners what their biggest challenges will be in 2025, and almost all have mentioned costs.
The last few years have seen small business owners face some of the toughest trading conditions imaginable. And it looks like 2025 could be just as tough, not least because of government decisions announced in the last budget.
It will be difficult for business owners to work out what to do for the best. Putting prices up could drive customers away (remember, many customers will be struggling to make ends meet too), and changing to cheaper suppliers could lessen the quality of your products or services.
One option that won’t impact the quality of your products or services is to cut the cost of services like energy, insurance, and broadband. It can also help to look at ways to save energy and see if there are any out-of-date subscriptions or contracts you can cut or renegotiate.
You should also check to see if you’re eligible for any small business grants.
It could also be worth looking at ways to increase revenue outside of putting up prices. We’ve got 12 ideas here, but we’d love to hear any more that you have, along with any other ways your business is adapting to deal with rising costs. You can get in touch by joining our Small Business Community (see below) or by emailing us at thebackbone@bionic.co.uk
🤝 COMMUNITY
Join our community of small business superheroes 🦸♀️
Small business owners are the superheroes of the high street. But small business owners rarely get their voices heard. Now there’s a place to chat, share advice and help each other through the lows and highs of running a business. To get involved, scan or click the QR code above or click the button below to sign up.
🗞 READ
💡 Could a time-of-use tariff help cut your business energy costs
When your business uses a lot of energy, every penny counts. That’s why it's crucial to assess all options. Most energy contracts give you a flat rate around the clock, but some tariffs offer cheaper rates for ‘off-peak’ usage.
Using a time-of-use tariff can help you save money if your business keeps irregular hours. Click the button below to find out more and how your business might benefit.
🔒 Can the location of your business affect your insurance prices and cover?
Choosing the right insurance for your business is an important consideration, and one key factor that can influence your insurance costs is your location.
From crime rates and flood risks to the quality of local infrastructure, many specific factors come into play. Understanding these can help you make more informed decisions about your business insurance.
🗣 SHOUTOUT
#BionicBusinessStory - 3 businesses, 1 question 🤔
We asked three more business owners about their biggest challenges in the year ahead. Here’s what they said…
Bionic - What do you see as your biggest challenges in 2025?
🍭 “The biggest challenge will likely be balancing growth with maintaining the high-quality, handcrafted nature of our chocolates and cakes. Managing production as demand increases without compromising on detail will be key, alongside navigating rising costs in ingredients and packaging.” Ned Vichev N2 Sweet Lab
💐 “Rising costs! Unfortunately, this one has been true for the past couple of years. It isn't an easy time to be a small business owner! But we shall persist.” Rosy Sida - Filth Florist
🧟 “Our biggest challenge for 2025 will be remaining affordable for consumers while ensuring that we can pay our increased bills (business rates have more than doubled, NI hikes, energy costs are astronomical, and rents may even go up at the next review). We have not increased our ticket prices for three years because we know that lots of Londoners simply can't afford to pay more, and so we have had to embrace new technologies, including AI, to bring down our running costs. This is working, but it does mean there are fewer jobs available in the creative industries. On the plus side, there are things that AI can do which are actually quite difficult for a human operator, so we have not seen a decrease in the quality of our offering; our average customer review score is still 4.9/5 and the frequency of 5* reviews has actually increased.” - Gary Stocker - Screamworks
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
This year’s Glastonbury lineup has just been announced, so Vikki, Head of CRM at Bionic, had the great idea of including a Glasto-inspired playlist this week. There are loads out there, but we plumped for Glastonbury 2025 -an educated guess on who's playing this year’s Glastonbury Festival. No, we’ve not heard of half of them either.
Podcast 🎙
We love a history podcast here at The Backbone, but most of them cover the whole of history, which is quite a lot to take in. Gone Medieval focuses solely on the Middle Ages, which covers from about 476 AD to the 1500s - still a pretty big timeframe that includes Vikings, Crusades, plagues, wars, the Renaissance, the fall of the Roman Empire, and more - not necessarily in that order.
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🏡 HOUSEKEEPING
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🚫 STOP
Thanks for making it to the end of another Bionic small business bulletin 🤝🏻
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