If your business is feeling the pinch of increasing operating expenses, you’re not alone. Nearly half of all businesses have reported an increase in their operating expenses for June. This can have a devastating affect on small and medium sized businesses.
The Australian Bureau of Statistic collected data from businesses on their monthly operating expenses and how they anticipate those numbers will change in the following month. They found that, year over year, 46% more businesses noted increases in June 2022 than there were in June 2021.
Businesses reported that their operating expenses were increasing each month since January this year, and believe they will continue to rise.
Why are business operating costs rising in Australia?
There are a number of factors influencing the rising cost of doing business in Australia. Businesses have noted general cost increases, as well as increases in the cost of products, materials, fuel and wages.
All these factors play a role in increasing operating expenses for businesses across the country. And with more businesses reporting an increase than a decrease, it’s clear that this is a widespread issue.
Small businesses especially have a lot to contend with when it comes to operating expenses. But with careful planning and execution, you can overcome this challenge and keep your business running smoothly. Use these tips to get started on reducing your own business expenses today.
So what can you do to manage these costs and keep your business running smoothly?
1. Cut back on non-essential spending:
If you want to save money, take a close look at your business expenses and see where you can cut back. Are there any non-essential costs that can be eliminated? If so, get rid of them. This will help you reduce your spending and free up some cash flow.
2. Find new ways to reduce your energy consumption:
Reducing your energy consumption is a great way to save money on operating costs. There are a number of ways you can do this, such as using energy-efficient appliances, installing solar panels, or simply turning off lights and electronics when they’re not in use.
Every little bit helps, so take some time to find new ways to reduce the power bills at your work site. You might be surprised at how much money you can save.
3. Renegotiate contracts with suppliers and vendors.
Renegotiating your contracts is a great way to save money. Talk to your suppliers and vendors about ways to reduce costs, such as by bulk ordering or paying early.
You may be surprised at how willing they are to work with you on reducing costs. So don’t be afraid to ask.
4. Consider raising prices to offset rising costs.
This is a tough decision to make, but it may be necessary if your operating costs are increasing faster than your revenue. If you do raise prices, make sure to do it in a way that won’t alienate your customers.
No one likes to pay more for the same product or service. But if you need to raise prices to keep your business afloat, make sure you do it in a way that makes sense for your customers.
5. Get a small business loan to help cover the increased costs.
If you’re struggling to make ends meet, a small business loan can give you the financial boost you need to keep your business afloat. There are a number of options available, so it’s a good idea to speak to an professional about your situation.
OnDeck is a leading online lender for small businesses. We offer a variety of different loans for different purposes. We can also help you find out your business credit score – for free and in a matter of minutes.
If you’re interested in learning more about OnDeck’s financing options, contact us to help you find the best solution for your business.
If you’re feeling the squeeze of rising operating expenses, take some time to review your options and find a solution that works for you. With careful planning and execution, you can overcome this challenge and keep your business running smoothly.
No matter what route you decide to take, remember that careful planning and execution are key to managing increased operating costs. With the right approach, you can overcome this challenge and keep your business running smoothly. Use these tips to get started on reducing your own business expenses today.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at October 2022. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.
