Cost cutting campaigns can seem somewhat futile when prices start rising at more than 2pc a month, but the higher costs go, the more money you can save. 

A word of warning: the classic approach to cost cutting seldom works well. We have all done it – an economy campaign that cuts the use of paper, urges colleagues to “switch off the lights”, cancels the magazines in reception, and even analyses the use of loo paper.

A far better way of attacking costs is to take time off from day-to-day difficulties and pile through all the invoices you paid during the last four months. Be prepared for a big surprise: you’re probably paying for a few things you don’t know about and don’t need.

Although nitpicking cost savings help a bit, major economies come from a change to the way you run your business. Covid caused many of us to have a big rethink. With deserted high streets and shops forced to close for weeks on end, we had to streamline our workforce. Most Timpson shops were run by one superstar, while our Snappy Snaps franchise partners forgot thoughts of weekday golf and spent 100pc of their time on the shop floor. 

Covid caused so many of us to cut our costs to survive that it’s tempting to think nothing more can be done. But we’re now facing a new set of problems. Some expenses, particularly energy and transport costs, have blown up out of all proportion, and the war in Ukraine will likely make things considerably worse. I’m hearing tales of despair from some of my “glass half empty” business pals, who can’t see how they can survive.

We’re all in the same boat. Business will survive, but there will be some casualties. The companies most at risk are those who do nothing and fail to minimise the impact of major cost increases, and those who abandon the principles that have built their reputation. Whatever the price, customers will expect the same values and level of service.

You need help. In tough times, when hard decisions must be made, it’s great to have a mentor, a consultant or an understanding husband or wife. Luckily, plenty of excellent free advice is available close at hand. Go and talk to the retailers down your road. Never mind whether they’re a butcher, baker or a bookshop, you all face similar problems. Put your heads together, and help each other to find the best way to keep making money.

Sir John Timpson is chairman of the high-street services provider, Timpson.

Send him a question at askjohn@telegraph.co.uk and read more answers from his Ask John column here