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How to tackle rising business costs.

Jan / 20 / 2016

This week I started to receive letters from my suppliers that their prices were going up this year. So it got me thinking how am I to manage my cash flow when I don’t always have control of the purse strings.

I think I’m pretty good with expenditure but I know there is always room for improvement. Do I put my prices up as well? Or do I cut back on the small things like the staff biscuits just to save a few bob?

So I have decided that I will set up a bi-yearly task of reassessing my expenses. Looking closely at electricity providers, staffing costs, commercial rent, stationary supplies, credit card interest rates, Website and computer costs, etc.  None of these I can work without but I can always ask for a discount.  Maybe if I offer to promote a company they may offer me a small discount. Offer to sing another companies praises on Social Media for a 5% saving.

Learning to ask for a cheaper price is not easy for many of us to do but we know that if we ask our banks for a better interest rate we may just be offered a reduction for our loyalty to their company.  We should do this with many of our suppliers.  You never know.

Now, when it comes to staff wages, asking them to take on a pay reduction will not go down well with most employees.  However, some employees may prefer a 9day fortnight, go part time for personal reasons or prefer to start a little later and just like that you have saved yourself some more dollars.

We often think we know the answer but many times we are surprised.

So in 2016 I’m going to ask for discounts and see how much I can save.  Maybe this year I can even get fancy and buy the assorted cream biscuits for staff meal area.  That will impress the troops.