Category: Business Support

How to Increase Gross Profit Returns

Gross profit is one of the clearest indicators of how well your business is performing. It’s the money left after deducting the direct costs of producing goods or services from your turnover. If your gross profit margins are tight, your business will struggle to cover overheads, let alone make a net profit. So, here are a few practical tips to help boost your gross profit returns.

Review Your Pricing Strategy

One of the quickest ways to increase gross profit is to charge more. That sounds simple, but many small business owners hesitate to raise prices out of fear of losing customers. If you’ve not reviewed your prices in the last year, you’re probably overdue. Inflation, supplier costs and market demand all change – and your pricing should reflect that. Even a modest price increase can make a noticeable difference to your bottom line.

Cut Direct Costs Without Cutting Corners

Take a close look at your cost of sales. Can you negotiate better terms with suppliers? Are there alternative materials or services that are more cost-effective without affecting quality? Regularly benchmark your supplier costs and don’t be afraid to shop around. That said, cutting quality to save money usually backfires. The goal is value, not just cheapness.

Upsell and Cross-Sell

Increasing the average transaction value is a smart way to lift gross profit. Train your team (and yourself) to spot opportunities to upsell or cross-sell. For example, if you sell coffee, can you offer a pastry at a discounted rate? If you're in professional services, can you bundle related services together? It’s often easier to sell more to an existing customer than to find a new one.

Streamline Production or Service Delivery

Time is money, especially if you sell services. Look at how you or your team deliver work. Are there steps that can be automated or removed? Can you reduce waste, rework, or idle time? The more efficiently you operate, the more profit you keep.

Monitor Your Margins

Finally, don’t rely on gut feel – use your accounts. Regularly track your gross profit margin by product, service, or client type. This helps you spot what's making money and what's not. Focus your energy where the returns are highest.

Fresh Ideas for Additional Revenue Streams

For many small and medium-sized enterprises (SMEs), the core business keeps the lights on, but additional income streams can provide much-needed stability and growth. Whether you're a service provider, a retailer, or run a niche consultancy, diversifying your revenue can cushion seasonal dips, economic shocks, or customer churn. Here are some practical ways to bring in extra income without straying too far from your core business.

Offer Online Courses or Webinars

If you’ve got specialist knowledge, turn it into a digital product. Creating online courses or hosting webinars allows you to monetise what you already know. This works particularly well for consultants, tradespeople, or niche service providers. Platforms like Teachable or Thinkific make setup relatively easy.

Introduce Subscription Services

Subscription models work for more than just magazines. If you sell products, consider offering a monthly bundle or repeat-order service. If you’re in a service industry, a retainer model or premium membership can offer exclusive content, support, or discounts to subscribers.

Rent Out Equipment or Space

Do you have tools, machinery, or office space that sits idle some of the time? Renting these out, even on an occasional basis, can generate passive income. This is especially useful for creative or construction businesses that own specialist gear.

Sell Branded Merchandise

If you’ve built a recognisable brand, merchandise could be a low-effort income stream. Think branded mugs, notebooks, tote bags, or even digital downloads like planners or templates. Print-on-demand services mean you don’t need to hold stock.

Affiliate Marketing or Product Referrals

If you already have a mailing list or online presence, recommending relevant products or services could bring in commission. Just ensure the partnerships are relevant and credible to maintain trust with your audience.

Create a Paid Newsletter or Exclusive Content Channel

If your business produces insights or useful information, consider launching a paid newsletter or members-only blog. Tools like Substack or Patreon allow you to test this with minimal upfront cost.

Offer Freelance or Consulting Services

If your business has a quiet season, consider offering your skills on a freelance basis. This works well for design, IT, marketing, or finance professionals looking to supplement core revenue.

Need help tailoring any of these ideas for your business? Call now so we can discuss your options.

Access to Funding and Credit

For many small business owners, getting access to funding feels like trying to squeeze water from a stone. Traditional banks have always been a bit cautious when it comes to lending to smaller enterprises, but over the past few years, it’s become even tougher. With the economic uncertainty lingering after Brexit, COVID-19, and a volatile global market, lenders are now scrutinising applications more closely than ever.

Many businesses face a chicken-and-egg situation. They need funding to grow, but without strong turnover or solid security (like property), banks are reluctant to say yes. Even successful businesses often find they don't meet the banks' ‘tick box’ criteria, especially if they are newer or operate in sectors seen as high risk.

Alternative finance options have grown significantly. Crowdfunding platforms, peer-to-peer lending, and invoice financing are now on the table for small businesses. There are even government-backed schemes, like the British Business Bank's programmes, which can help. But many business owners are unsure about how these work or are wary of taking on unfamiliar debt.

Another challenge is the cost. Interest rates have risen sharply, meaning borrowing is far more expensive than it was just a couple of years ago. What might have been a manageable loan repayment in 2020 could now be uncomfortably high.

Grants do exist, but they are often highly competitive, sector-specific, or tied to innovation and sustainability projects. Day-to-day businesses just trying to expand their premises, hire staff, or invest in new equipment can feel left out.

Navigating the funding landscape requires time, research, and often professional advice. Some businesses are turning to financial brokers to find the best options, but this comes with its own costs and risks. Others are choosing to grow slowly, using retained profits rather than borrowing at all.

At the end of the day, access to funding remains a major barrier to scaling up for many UK small businesses. Without new sources of finance, many will simply tread water instead of reaching their potential.

Cybersecurity

Cybersecurity might sound like something only big corporations need to worry about, but in truth, small businesses are increasingly in the firing line. In fact, many cyber criminals deliberately target smaller firms, knowing they often lack the resources and expertise to protect themselves properly.

The most common threat is phishing. These are fake emails that look convincing, aiming to trick you or your employees into giving away passwords, payment details, or sensitive company data. Ransomware is another growing problem — hackers encrypt your files and demand payment to unlock them. For a small business, losing access to critical data can be absolutely devastating.

One major risk area is the use of outdated software. If your computers, point-of-sale systems, or even your website platform aren't regularly updated, they can become easy entry points for hackers. Even something as simple as using weak passwords or not backing up data can create big vulnerabilities.

There’s also the reputational damage to think about. If a customer’s personal information gets leaked because of a cyber-attack, trust is hard to rebuild. For businesses that rely heavily on loyal clients and word-of-mouth referrals, a breach could be disastrous.

Many small businesses wrongly assume they can’t afford cybersecurity. But basic protections don’t have to cost the earth. Regularly updating systems, training staff to recognise dodgy emails, using multi-factor authentication, and investing in reliable antivirus software are all relatively low-cost measures that can offer significant protection.

Cyber insurance is another option that more small businesses are exploring. Policies vary, but good cover can help with the financial hit if the worst happens and often includes access to expert help to get you back up and running.

The Government’s Cyber Essentials scheme is also worth looking at. It’s a certification that shows you take cybersecurity seriously, and it can even help you win contracts, particularly with larger companies or public sector work.

Ultimately, cybersecurity is no longer a ‘nice to have’ — it’s as essential as locking your front door at night. A little investment of time and money now can save an awful lot of heartache and cost down the line.

UK Responds to New US Tariffs

The UK’s Business and Trade Secretary, Jonathan Reynolds, has set out the government's position following the United States' recent imposition of new tariffs on UK exports. These include a 10% reciprocal tariff on British goods and a separate 25% global tariff on cars — moves that have prompted concern among UK manufacturers and exporters.

Reynolds told Parliament he was disappointed by the decision, particularly given the close trading relationship between the two countries. While the US has already imposed a 25% tariff on steel, aluminium, and related products since March, the latest action extends the economic pressure and signals a hardening stance from Washington.

Despite the setback, the Trade Secretary struck a calm and constructive tone, saying the UK will continue to act in the national interest while standing behind domestic industries. He confirmed that UK officials are in ongoing talks with key figures in the US administration, including the Secretary of Commerce and the US Trade Representative, in an effort to rebuild a more stable and mutually beneficial trading relationship.

Reynolds was clear that the government is not seeking to inflame tensions but is preparing for all eventualities. A new public consultation has been launched, inviting businesses and stakeholders to give their views on the impact of the tariffs and to suggest potential UK responses. The consultation runs until 1 May and aims to ensure that any future action is well-informed and proportionate.

The government has also committed to helping businesses navigate the situation, offering guidance through its trade support services and encouraging firms to share their concerns. Reynolds noted that many UK companies still see strong opportunities in US-UK trade and want to preserve access to the world’s largest economy.

He ended by affirming the government’s wider strategy to promote economic resilience through industrial growth, international cooperation, and fair trading practices. The message from the Department for Business and Trade is that while the tariffs are unwelcome, the UK remains focused on protecting its interests without resorting to knee-jerk reactions.

In short, the UK is taking a pragmatic, level-headed approach — defending its industries, listening to businesses, and working to keep trade channels open, even in challenging circumstances.

£13.9bn of R&D funding

The UK government has announced a record-breaking £13.9 billion in research and development (R&D) funding for the coming year. This major investment is designed to drive innovation, create quality jobs, and support long-term economic growth across the country.

A large share of the funding, amounting to £8.8 billion, has been allocated to UK Research and Innovation (UKRI), which supports the UK’s leading scientific and technological projects. This funding will help deliver groundbreaking work across multiple sectors including life sciences, clean energy, and advanced engineering.

One of the headline projects includes research into new blood tests aimed at detecting dementia earlier. With nearly a million people in the UK affected by the condition, early diagnosis could make a big difference to treatment outcomes and overall quality of life. It would also help reduce pressure on health and care services.

Another key area of investment is renewable energy. The government is continuing its support for the construction of a new wind turbine test facility in Blyth, Northumberland. This project, which is receiving £86 million, is expected to boost the UK's capacity for clean energy development, support highly skilled local employment, and attract further private investment into the green economy.

The government sees this R&D investment as a central part of its broader 'Plan for Change', which aims to strengthen public services while encouraging economic opportunity and innovation. Officials believe that public investment in R&D often leads to a doubling of private sector investment over time. Evidence shows that businesses receiving R&D grant funding often experience more than 20 percent growth in both employment and turnover within six years.

Science and Technology Secretary Peter Kyle described the investment as a commitment to the future. He said innovation is central to solving society’s biggest challenges, from life-saving medical advances to tackling climate change. He also stressed that research and development plays a vital role in growing the economy and supporting public services across the UK.

This unprecedented level of funding shows that the UK is serious about its role as a global leader in science and technology. By supporting bold ideas and giving researchers the tools they need, the government hopes to unlock progress, create opportunity, and deliver real benefits for people and businesses throughout the country.

Dealing with supply line interruptions

Supply line interruptions can be a nightmare for any business. Whether it’s a delay in deliveries, a shortage of materials, or problems with international shipping, things can grind to a halt fast. But with a bit of planning and a calm approach, you can keep things ticking over and reduce the impact.

1. Know your supply chain inside out

The first step is understanding exactly where your goods are coming from and how they get to you. Who are the suppliers? Are they reliant on overseas shipping? Do they have a history of delays? Map it all out so you can spot weak points before they become full-blown problems.

2. Build strong relationships with suppliers

Good relationships matter. If you’ve got a solid connection with your supplier, they’re far more likely to keep you in the loop if issues arise. It also makes it easier to negotiate alternatives or push your order to the top of the queue when things go wrong.

3. Keep a buffer stock if you can

Holding a bit of extra stock can be a lifesaver, especially for critical items. It might tie up a bit of cash, but it gives you breathing space if something doesn’t arrive on time. It’s all about balance – enough to cover a delay, but not so much that it eats into your profits.

4. Have a Plan B (and maybe a Plan C)

Diversify your supply sources where possible. If one supplier can’t deliver, having an alternative ready can mean the difference between a minor hiccup and a major crisis. Even just knowing who else you could call on helps you react quicker.

5. Stay informed and flexible

Keep an eye on news that might affect supply chains – like strikes, border issues, or economic changes. The sooner you know something’s up, the quicker you can respond. And stay flexible. Can you switch to a different product? Delay a launch? Being adaptable is key.

Final thoughts

Supply line interruptions aren’t always avoidable, but they don’t have to derail your business. With a bit of foresight and some strong backup plans, you can weather the storm and keep moving forward – even if the lorries aren’t.

Managing gross profit returns

Gross profit is one of the clearest indicators of how well your business is performing. It’s the amount left after deducting the cost of goods sold (COGS) from your sales revenue. Managing your gross profit returns well is crucial because it directly affects your bottom line and helps you understand whether you’re pricing correctly, controlling costs, and making enough to cover your overheads.

What Exactly Is Gross Profit?

Let’s start with the basics. Gross profit = Sales – Cost of Goods Sold. It doesn’t include things like rent, wages (unless they’re directly related to producing the goods), marketing, or admin costs. This figure tells you how much you’re making on the actual product or service before general running costs are factored in.

A healthy gross profit gives you the buffer to pay your bills, reinvest, or take a wage. Poor gross profit might mean your pricing is too low, your suppliers are charging too much, or your operations aren’t efficient.

Why It Matters

Many businesses keep an eye on sales and bank balances, but gross profit tells a deeper story. You might be selling a lot, but if your margins are tight, you could still be in financial trouble. Regularly checking your gross profit margin (usually shown as a percentage) gives you early warning signs if things start slipping.

Improving Gross Profit

There are several ways to manage and improve your gross profit returns:

• Review Pricing: Are your prices competitive and profitable? Don’t undersell your value.
• Reduce COGS: Negotiate with suppliers, buy in bulk where sensible, or streamline production.
• Control Waste: In retail or food businesses, waste is a silent profit killer. Keep a close eye on stock control.
• Focus on Bestsellers: Promote your highest-margin products or services more heavily.

Regular Monitoring Is Key

You should be reviewing gross profit monthly at least. Use accounting software or simple spreadsheets to track changes and spot trends. If you see margins slipping, act quickly. The sooner you fix it, the better your long-term prospects.

Recycling changes

​As of 31 March 2025, new regulations have come into effect in England, requiring workplaces to adopt simplified recycling practices. These measures aim to eliminate confusion over waste sorting, enhance recycling rates, and reduce waste sent to landfills or incineration. ​

Key Requirements for Workplaces:

• Separation of Waste Streams: Workplaces with 10 or more employees must arrange for the collection of:
  • Dry recyclable materials, including plastic, metal, glass, paper, and card.​
  • Food waste.​
  • Residual (non-recyclable) waste.​

Paper and card should be separated from other dry recyclables unless the waste collector permits combined collection. ​

• Flexibility in Collection: Businesses can determine the size of containers, and the frequency of collections based on their waste production volume. ​

These regulations apply to various non-domestic premises, including offices, educational institutions, healthcare facilities, care homes, charities, places of worship, and public meeting venues. ​

Support and Compliance:

The Environment Agency now oversees the regulation of Simpler Recycling, offering guidance to businesses and waste collectors to ensure compliance. Non-compliance may result in enforcement actions, including compliance notices. ​

By streamlining recycling practices, these new rules aim to increase the quality and quantity of recycled materials, supporting the transition to a more sustainable, circular economy in England.

Pubs and premises insurance

In March 2025, the Pubs Code Adjudicator (PCA) wrote to all pub-owning businesses to reinforce the importance of complying with Regulation 46 of the Pubs Code. This regulation focuses on how premises insurance is handled and, crucially, the tied tenant’s right to seek a price match on insurance premiums.

Under Regulation 46, pub companies must give tenants full information about the premises insurance arrangements when the tenant is expected to pay the cost. This includes explaining how premiums are calculated and giving tenants the chance to shop around for a policy that offers similar cover at a lower price. If a tenant finds such a policy and it meets the standard of being “suitable and comparable,” the pub company must either take out that policy or agree in writing not to charge the tenant the difference.

The PCA’s action follows a compliance review in 2024 involving Star Pubs & Bars, which led to improvements in how Star explains insurance charges to tenants. Building on that, the PCA contacted all pub companies in October 2024 to encourage similar improvements, especially where self-insurance schemes are in place.

More recently, the PCA expressed concern that many pub companies may not be properly honouring the price match right. A key issue is clarity. Some companies appear to reject tenant-proposed policies on the basis that they aren’t “equivalent” or “better” than the company’s own. The PCA has reminded businesses that this isn’t the correct test. The law only requires a policy to be “suitable and comparable,” not identical.

Worryingly, the PCA’s 2024 Annual Tied Tenant Survey revealed that just 56% of tenants knew they had the right to challenge insurance costs through price matching. This lack of awareness could mean many tenants are paying more than they need to.

In its latest communication, the PCA has urged all pub companies to double-check their compliance with Regulation 46 and ensure that communications with tenants clearly explain the price match right. Businesses should avoid technical or vague language and give tenants confidence to use their rights without hassle or delay.

The PCA is also encouraging tied tenants and other stakeholders to share their experiences. Feedback helps the regulator assess whether the rules are being followed fairly and consistently across the industry.

By promoting awareness and pushing for fair treatment, the PCA is aiming to create a more transparent and balanced environment for tied pubs across England and Wales.