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This time last year we covered the burning issues of cost-living-pressures, high inflation and consumer confidence!

12 months on, here we are still battling and countering the effects of price increases that are impacting our lives. Discretionary spending now is the way forward for many. This habit is reflected in a recent headline, 'cost of living bites down on West Australians' with comments 'the community is broadly attempting to rein in spending, or at least choosing where to spend their money' (West Newspaper). Yes, whether consumers or small Business operators, no one can escape these pressures.

What's changed?

The good news is our inflation has been coming down, a sign that tighter financial conditions have dampened upward pressure.  But be aware of the Reserve Bank's position, announcing it is ready to act as needed. Increase or decrease, it's a wait and see, a situation keeping many on edge. Not so happy are mortgage holders arguing they are still hurting by the increased interest rates and struggling with everyday expenses. 

For others, although household budgets are under pressure, and some travel plans are on hold, many are still willing to enjoy their treats, taking staycations, Gym memberships,  grabbing that morning takeaway coffee and dining out. Smashed avocado is still on the menu! and entertainment, live concerts are also popular. The summer holiday break and new years resolutions seen as driving this spending. 

This trend supports the more resilient industries, hospitality, beauty and fitness. These Business in return provide employment opportunities for a mostly casual workforce, with many of these taking on more than one job to ease household pressures. This now described as the 'poly-employment' trend.  

Other good news! 

Australian consumer confidence bounced to a 20-month high in February, according to Reuters, as the slowdown in inflation fuelled hopes interest rates had peaked, boosting spending intentions. For example I went down to my local hardware store and they had a whole wall of "Bluey" gnomes.  The next day I was there and all the gnomes had gone! 

Despite this positivity, if you are a small business, running a Business is not for the faint-hearted. Many hospitality operators say they are battling rising costs in all areas of business including ingredients, labour and energy, calling on the Federal government to provide some relief in the May budget.

For now, how to counter the cost of living pressures! What to do to stay in Business!

Smart Businesses explore ways of cutting costs and improve their profitability. 

 Here are 10 Practical Tips to help!

1. Reduce inefficiency. 
2.  Eliminate unnecessary costs.
3.  Look after your Customers. 
4. Invest in Technology.  
5. Develop a Robust Marketing Plan 
6.  Engage Social media platforms.  
7.  Be your best promoter to get the best results!. 
8. Focus on your best-selling products. 
9.  Consider Outsourcing options 
10. Contact Blackburn Accounting to discuss your Business needs.