Article

How small businesses can navigate rising costs of living

The rising cost of living in New Zealand presents real challenges for small businesses, but with the right approach, it is possible to not only survive but thrive during economic fluctuations. In this article, we will offer some valuable insights and actionable tips to help small business owners combat increasing expenses.

emil kalibradov K05Udh2LhFA unsplash

1. Assess and Adapt Your Budget

The first step in weathering the storm of rising costs is to have a clear understanding of your business’s financial health. Analyse your budget and identify areas where you can cut unnecessary expenses without compromising the quality of your products or services. Reevaluate your supplier contracts and negotiate for better deals or discounts based on your long-standing relationship.

2. Embrace Technology to Increase Efficiency

Incorporating technology into your business operations can significantly enhance productivity and cut costs. Consider automating repetitive tasks, implementing cloud-based systems for inventory management and accounting, and utilising digital marketing strategies to reach a wider audience without hefty advertising expenses.

3. Prioritise Customer Loyalty

Nurturing customer loyalty is a powerful tool in turbulent economic times. Offer personalised experiences, loyalty programs, and exceptional customer service to retain existing customers and encourage them to refer your business to others. Satisfied customers are more likely to continue supporting your business despite rising prices.

4. Diversify Revenue Streams

Relying solely on one product or service can make your business more susceptible to market fluctuations. Consider diversifying your offerings to attract a broader customer base. For instance, if you run a cafe, you could consider offering event catering. Diversification can buffer your business against potential losses.

5. Negotiate with Suppliers and Landlords

During periods of economic strain, don’t hesitate to negotiate with suppliers and landlords. Communicate openly about the challenges your business is facing and explore opportunities for mutually beneficial agreements. Some suppliers may be willing to offer better terms or discounts to maintain a long-term relationship with you.

6. Stay Informed and Adapt

Keep a close eye on economic trends and changes in the market. Regularly review your business strategies and be prepared to adapt when necessary. Staying proactive and making informed decisions can help your business remain agile and resilient in the face of economic challenges.

For more advice on how to beat the rising cost of living, get in touch with SBA for a chat today – we are here to help.

Let's catch up!

We’re keen to help, so contact us below & your branch will be in
 touch, or find your local branch to learn more about them first.

SBA - Logo White
Facebook Linkedin Youtube

0800 999 722

0800 999 722

© Small Business Accounting 2023 – All Rights Reserved

Terms and Conditions

  • The applicant must be the owner, partner or major shareholder of the business and active in its day-to-day operations.
  • The business must be financially stable and operational for a minimum of two years.
  • The business must be forecasted to stay in business for at least the next 12 months.
  • Businesses must be a customer of an SBA branch at the time award is presented.
  • Must enter by 30th of June 2025.
  • Prizes cannot be exchanged for cash.

Terms and Conditions

  • Must be a small business owner and have a registered business, with a genuine need for accounting services.
  • Must enquire and sign up with an SBA branch by 31st May 2025 to be eligible to win any of the prizes.
  • One entry only per business owner.

  • For the retro prizes, if the brands shown are not available or not available at the price point shown at the time of purchase,
    we will find an alternative prize up to the values shown.

  • Prizes cannot be exchanged for cash.