Rising operational costs are putting pressure on businesses across New Zealand – and Wellington is no exception. A recent survey revealed that 93% of business owners feel that government changes have significantly increased their cost of doing business. With higher expenses eating into profit margins and cashflow, taking proactive steps to control costs and boost revenue is essential.
At Outside Accounting Wellington, we work closely with local businesses to create strategies that address economic pressures head-on. If your profit margins are shrinking, it’s time to rethink how your business manages expenses and generates income.
When your costs are rising faster than your revenue, your financial health can quickly deteriorate. Fortunately, there are two key areas where you can make impactful changes: cutting operating expenses and increasing revenue streams. Below are seven practical strategies to help protect your bottom line.
Streamline Operations with Automation
Identify inefficiencies in your workflows and introduce automation to reduce manual labour and operational overheads. Tools like cloud-based accounting software, CRMs, and payroll apps can increase productivity while reducing costs.
Negotiate Better Supplier Terms
Review your current supplier agreements and negotiate improved rates or extended payment terms. Consider switching to alternative suppliers or exploring bulk purchasing to unlock cost efficiencies.
Cut Energy Consumption
Energy costs are rising. By investing in LED lighting, energy-efficient appliances, and monitoring systems, you can lower your utility bills. Explore renewable energy solutions such as solar to further reduce long-term costs.
Optimise Inventory Management
Excess inventory ties up capital and increases storage costs. Use just-in-time (JIT) inventory systems to keep stock levels lean and aligned with demand, avoiding waste and boosting cashflow.
Expand Your Customer Base
Target new markets or customer segments through digital marketing, SEO, and social media advertising. Diversifying your client base reduces reliance on a single revenue stream and spreads risk.
Increase Prices Strategically
Review your pricing model to reflect increased costs. If handled correctly, minor price increases won’t drive customers away – especially if you communicate the value you deliver.
Diversify Products or Services
Adapt to market changes by launching new offerings aligned with customer demand. Use existing resources and team expertise to innovate without significant new investment.
While economic challenges are outside your control, how you respond is within your power. At Outside Accounting Wellington, we offer tailored advice to help you manage cost pressures, improve profitability, and build a more resilient business.
Let us help you:
Review your expenses and identify savings opportunities
Optimise your pricing and margins
Develop new revenue strategies
Improve your cashflow management
Contact us today to book a strategic financial review – and let’s make your business stronger, even in tough economic conditions.
Our Business Clients
Cam recently caught up with Grant Douglas, owner of Makers Fabrication, to get his perspective on a few things. If you want to chew the fat with Grant further – get in touch and we’ll set it up.
Besides being pretty all-round top blokes, Matt and AJ are bloody screwed on when it comes to growing their business and smashing their goals.
Flick us an email or give us a buzz!
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011 New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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