Tactics to offset rising business costs

Solution One: Increase Price and Margin

If you can raise your prices without harming demand or client relationships, rising costs may be absorbed more easily. Customers generally understand price adjustments over time. If you’re in a price-sensitive industry, test increases on non-core services first—your competitors are likely facing similar pressures.

Another effective tactic is negotiating with suppliers. Explore volume discounts, better contract terms, or switching vendors for more competitive rates. In particular, costs like technology and software should decline over time—review these regularly.

You can also reduce your reliance on labor-intensive processes by automating functions such as:

• Online accounting and bookkeeping

• Payroll and HR

• Payment collections

• Inventory tracking

If you have the cash flow, switch to bulk purchasing for non-perishable supplies to unlock better unit pricing.

Improve your cash flow by invoicing immediately after job completion—or even better, implement progress payments. Explore our tips on effective invoicing practices.

Remote work (even part-time) can also help reduce your office footprint, saving on rent and utilities.

Additionally, sustainability practices like recycling, energy saving, and going paperless can cut costs while improving brand perception.

Check if your business qualifies for exclusive cost savings through membership with local chambers, associations, or groups—these often include discounts on insurance, office supplies, or training.

Solution Two: Cut Non-Essential Expenses

One of the most direct responses to rising costs is cutting them altogether. Start by reviewing what’s truly essential.

• Cancel or downgrade unused software subscriptions or fixed plans.

• Reassess your marketing budget—is each ad or channel driving measurable returns? Avoid vanity advertising that doesn’t convert. Learn more in our digital marketing cost guide.

• Download your cash flow statement and evaluate every expense—item by item.

Consider adjusting opening hours to cut energy, staffing, and maintenance expenses—but analyze how this may affect your revenue and customer loyalty first.

Some products or service lines may be operating at a loss. Use profit center analysis to break down your business into segments and allocate costs accordingly. Need help? Book a business advisory session with us.

Staff reduction should be a last resort but can be considered if it’s the only path to survival. Be sure to follow labor law procedures correctly.

Postpone big-ticket purchases if they stretch your cash reserves. Repairs, upgrades, or leasing could be a temporary alternative.

Lastly, speak to a certified tax expert to review your business structure, claim all eligible expenses, and ensure you’re minimizing your tax burden.

Summary

Cost pressures are rising, and they can threaten even the most stable businesses—especially SMEs with tight margins. But with a proactive plan, you can soften the blow.

Focus on what you can control: pricing, supplier costs, automation, and spending cuts. Make data-driven decisions and review your cost centers regularly.

Need a custom cost-saving plan for your business? Talk to one of our experts and let’s create a strategy that protects your profits and future.