Despite supposedly widespread portents of hope and expectation, the British economy remains precariously balanced at present. This may come under more scrutiny in the coming weeks, after mortgage lending in the UK finally began to decline after months of continuing growth. More specifically, banks and building societies made an estimated 70,309 loans during February, which fell well below January’s six-year high 76,753. Although this news has been slightly offset by rising levels of consumer and business confidence, it would wise for any business-owner to think carefully when spending over the course of the next financial quarter.
How to Manage your Bar without Overspending
So if you are a bar-owner, for example, it is important to think carefully about expenditure and keep an eye on evolving economic trends. This must be done without compromising the profitability of your venture, however, so consider the following steps towards achieving this delicate balance: –
1. Develop an Understanding of your Local Consumer Base
For physical businesses such as bars, there is a pressing need to understand your core, local consumer base. People tend to adopt public houses and bars and regular destinations of choice, so you must comprehend their needs and preferences if you are to compete with rival businesses. This is a worthwhile investment, whether you seek to take a small sample of the market or use the principles of CRM to gain critical consumer insight. Not only can it be relatively cost-effective to source information, but the results can also translate into direct increases in profit.
2. Distinguish between Strategic and Operational Costs
As a general rule, there is a clear difference between strategic and operational costs for business-owners. This states that the former should be given priority, as they relate to the long-term growth of your business and influence profitable tasks such as marketing and sales. In contrast, operational costs relate to more mechanical tasks, and although they are still important they offer greater opportunity for you to save money without impacting on profit. By partnering with affordable commercial catering suppliers such as Fridgeland, for example, you can access high quality equipment without spending outside of your means and compromising on other expenses.
3. Deal in Pence rather than Pounds while Budgeting
Budgeting is key aspect of business and bar management, and it is crucial that you adopt a precise approach towards distributing funds. By dealing in pence rather than pounds and cutting small amounts from each individual item of expenditure, you can save huge amounts of business capital throughout the course of the financial year. This philosophy is particularly relevant when it is applied to the procurement of drinks and snacks for your bar, as you must strike the balance between being adequately stocked and not over-investing your funds.