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Younger generations are leading the way in cost-saving
Gen Z, particularly those aged 18-24, are setting new standards in financial savvy, with 59% recognizing the benefits of switching payment providers to save money. They’re proactive in optimising their businesses, and being digital natives, they’re skilled at researching and comparing options online - often finding opportunities that older generations might miss. Whether in their personal lives or business, Gen Z has a keen eye for discounts and cost-cutting strategies, making them particularly vigilant when it comes to managing expenses. Their approach isn’t just about saving a few pounds; it’s a strategic move that could boost their long-term profitability and growth.
Older Business Owners Missing Out on Savings
In contrast, only 20% of business owners over 65 are aware of the potential savings from switching providers. This highlights a worrying trend: as entrepreneurs age, they seem less inclined to explore cost-saving measures. This reluctance might come from being comfortable with established routines or perceiving changes as too complicated. Unfortunately, sticking with the same provider could mean missing out on significant savings and losing competitiveness in a market that’s increasingly focused on cost efficiency. While long-standing relationships with providers may feel secure, they could also lead to higher expenses over time.
The generational divide in financial strategy
This gap between generations shows a shift in how different age groups manage their businesses. Younger owners, driven by their familiarity with technology and a focus on efficiency, are more likely to research and switch providers to save money. In contrast, older entrepreneurs often prioritise maintaining long-standing relationships, which can unintentionally lead to higher costs.
To close this gap, older generations might need to adjust their approach to stay competitive. Regularly reviewing provider contracts, keeping informed about industry changes, and being open to new solutions can unlock considerable savings. Providers, in turn, need to ensure their offerings are clear and transparent, especially for older business owners who may need more reassurance before making changes.
Ultimately, a flexible approach to financial management is essential for all business owners. By taking advantage of every opportunity to improve profitability, they can secure long-term success for their businesses.