As we navigate through the challenges of a persistent inflationary environment, it’s crucial for business owners to stay informed and proactive. In this month’s edition of ‘in the loop’, I discuss the latest updates on minimum wage increases and CPI rates, plus breakdown the steps you can take to help your business adapt and thrive in these times.

To make sure you’re kept in the loop, watch my short video [with transcript below].



So minimum wage increases have been announced, 3.75% minimum wage increase from 1 July. That’s going to flow through to award rates as well. We also last week had the monthly CPI, the April CPI announced, which has a year on year CPI rate of 3.6%. That combined with very, very low productivity within the economy means business owners have no choice but to think about the impact of this persistent inflation on their business. So what are we talking to our clients about? What can you do within your business to deal with this persistent inflationary environment?


1. set your budget

The first is just do what we always encourage people to do and that is to set your budget, set your projections for the year ahead. Of course, in doing so, you’re going to look at the result at the end and maybe do it in a worst case scenario basis with inflation and, and increases within your cost to think about whether your pricing strategy then needs to be reviewed.


2. review your prices

And that’s the number two thing I talked to people about doing. Review your prices. Are you charging enough? Have you got enough margins still built into your pricing given the impact of high costs within your business?


3. cost cutting

Thirdly, cost cutting. Of course, look at your cost. Where is your waste? Where is your inefficiency? What can you remove from your business? Don’t forget those little monthly direct debit sort of type things that keep coming out of your business.


4. cash flow management

You can’t afford to have bad debts in this environment. Make sure you’ve got good debtor control so you’re not leaving any money on the table in that regard. Click here to read more on cash flow management.


5. segment reporting

One thing I always love to do when I’m looking at businesses and where the profits are coming from, where maybe margins are a bit more squeezed, is to do some segment reporting. Look at it by location, look at it by division, maybe look at by product or by product line. Maybe it’s even time to cut a product line if you’re not making any money out of it.


6. review your marketing strategy

Review your marketing strategy as well, of course. Where is your sustainable competitive advantage? What is it that makes you stand out from the crowd? And then make your marketing strategy really, really focusing on that.

Do some of these things. Do all of these things, but my advice at the moment is don’t wait for inflation or don’t expect inflation to go down anytime soon. Expect it to be persistent. So do something in your business now to prepare it for what lies ahead.


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If you have a burning question on your mind, you’re probably not alone! If you’d like us to answer any questions you might have, feel free to give us a buzz at 1300 BDEPOT.


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