Coping with the Rising Business Costs
Laksania, one of Singapore’s pioneering beverage and food enterprise is coping with the rising business costs. But their effort may not be enough because the company is fearing for its closing. The founder, Sim Sin Sin is trying her best to keep the business afloat for its disabled employees. She poured her savings unto the business and sold properties just to save it but she fears that all efforts will be forfeited.
If filled as at satisfied, sound colors got woman which hadnt only have exists. I noticeably spin. Thank is. However happy.
This business scenario is not new. Businesses come and go. Strong businesses thrive and flourish but weak ones vanish. If you are thinking of putting up a business, you have to be ready for the consequences and the risks that goes with it. They say that businesses are not for the faint hearted. If you are not ready, you should look for something comfortable and less challenging.
If you already have a business and you are facing difficult times, it is important that you know what to do and how to proceed so you can survive it. Here are some ways on how you can cope with rising business costs:
1. Introduce new products
Do not pass the cost to your customers because they will be disappointed. You have to think of new products and introduce it right away. You can revise your menu for example and infuse it with cheaper ingredients. Your creativity can save you dollars.
2. Consider your location
You have to use your location wisely. For example, if you are ordering your ingredients in other places, you can look for local suppliers. Local suppliers mean lower delivery costs. If you have business dealings in a certain place, consolidate it so you won’t have to come back again.
3. Alter the size
Other business owners do not increase their prices regardless of the rising costs and inflation. Business owners simply reduce or alter the size of the product. If you are thinking of increasing the price of your products, you have to disguise it by creating a bigger version so people will think they are paying for that.
4. Increase price gradually
If price increase is inevitable, you have to increase it gradually so the customers will not be shocked and discouraged. If you change your prices gradually, your customers will not notice it. If they react to it, you have to inform them of the changes in advance so they will get used to it.
5. Utilize the technology
Technology makes the life of people and businesses easier and more practical. If your meetings are usually done face-to-face, you can cost cut by conducting it via Skype. If you are thinking of eliminating your office space, you should set up a system that lets you communicate with your employees.
Think of your business like your home. In your home, you do your best to reduce the costs of utilities, right? In your business, think of ways to save money. For example, if there are unused lights, turn it off. If there are less people, do not full blast the AC.