Small recession-hit businesses faced with increased business costs may be able to save money through group buying, research carried out by the Forum of Private Business (FPB) has claimed.
According to the FPB, spiralling business costs in the wake of the recession and rising inflation have become a 'major barrier to growth', with 82 per cent of business owners seeing the cost of raw materials increase over the past year. The same number said that rising overheads had adversely impacted their business.
Of the businesses surveyed, 74 per cent said that price increases had hindered their growth ambitions while 45 per cent said their profitability had suffered as a result.
The FPB is now urging small businesses to consider alternative buying methods to reduce overheads and cash flow problems.
Phil Orford, the FPB's chief executive, said: "At a time of recession and spiralling costs it is important that small businesses are given all the support they need to control their overheads and cash flow worries. Group buying is a real solution to the problem."
In collaboration with the Buying support Agency (BSA), the FPB and the BSA have offered some tips to help cut business costs: