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Is Your Business In For Some Surprising Cost Rises?

Many businesses would be able to sail into the future without too much concern if costs were staying the same. However, costs are not only rising across the board, but many small business owners neglect to notice that costs can scale with a business as it grows, sometimes outpacing its growth. Here are a few sources of rising costs you need to be aware of, and what you can do to stem the flow.

Importing insecurities

The way we trade from country to country is likely to change. New international tariffs, Brexit, and other global economy changes could see it become much more expensive for small businesses to source goods from overseas. This might, in turn, lead to the growth of the domestic market in order to keep businesses competitive, but it’s difficult to see that far into the future. We may end up simply have to deal with these rising costs.

Insurance anxieties

One market that’s on the rise but isn’t looked at quite as often is the business insurance market. All businesses need insurance. However, not only are costs rising, but small and medium business owners are being sold more insurance than they don’t need. Besides comparing the costs of business insurance, you should consider working with an insurance broker. These are independent advisors who will make sure that not only are you under-insured against real risks but also that you’re not paying over the nose for insurance deals that you don’t actually need.

Unnerving utility bills

If you have been paying attention to news around energy providers as of late, then you’re likely aware that we are going to be seeing (and are already seeing) price hikes in retail energy providers across the board. This isn’t only applicable to retail energy costs, either. We’re seeing rises at wholesale, as well. It might not be as high as the retail increases, but there is steadily becoming less and less of a difference in the deal that business owners get compared to homeowners. This means it is past time that we start looking at ways to cut how we use energy in our businesses.

The cost of growth

If your business is getting more customers, then it’s also coping with more expense. Your staff will be busier, you will be shipping more products or dealing with increased operational costs. At some point, your business isn’t enough to deal with the demand as it stands. That’s when it’s time to consider scaling. However, scaling can be expensive in its own right, so you need to ensure that you secure the funding your business needs to make it to the next stage safely, as well. Put together a business plan and see exactly what resources you need to scale effectively and whether projected business growth is enough to keep you sustainable.

Besides cutting costs, the simple truth of the matter is that businesses have to grow to be sustainable. If you’re not going up, the only way is down. Looking at expanding your market, creating new revenue streams, and increasing prices might be just as essential as watching how you spend your money.