The 2025 Budget Speech delivered its fair share of surprises. For small and micro business owners, one thing is clear: operating costs are rising. Fuel levies went up. So did sin taxes. Public sector wages will continue to demand a big slice of the pie. Inflation, while softening, remains a stubborn reality.
But here’s the truth: while the economic landscape may be shifting, this is not the time to panic. It’s the time to budget bravely.
The Cost Pressures We Need to Face
- Fuel levy increases: Whether you deliver products, travel to clients, or depend on logistics, higher transport costs will squeeze margins.
- Utilities and services: Municipal tariffs are expected to climb, along with Eskom adjustments.
- Supplier pass-throughs: Many of your suppliers are facing the same pressures — and may adjust pricing accordingly.
Four Practical Ways to Budget Bravely
- Reassess Your Fixed and Variable Costs Separate the essentials from the “nice-to-haves.” If subscriptions or suppliers are no longer pulling their weight, now’s the time to renegotiate or cut.
- Build in Contingency Buffers Budget for potential increases. Whether it’s fuel, electricity, or unexpected repairs, a 10-15% contingency line in your forecast can prevent a scramble later.
- Cash Flow Is King Keep a closer eye on inflows and outflows. Use forecasting tools and speak to your accountant regularly to spot issues before they become crises.
- Get Strategic with Your Spend Invest in what moves your business forward: automation, customer experience, and professional advice. Cut the rest.
The Opportunity in the Challenge
Hard times often inspire leaner, smarter, more agile businesses. Budgetting bravey is not easy. It will require that you are honest about the true state of your revenue, face the reality of business expenses and make some tough decisions to ensure that your business stands strong to ride the rising wave of expected price hikes.
Use this season to build discipline, deepen customer relationships, and plan boldly for the long-term. And remember: you’re not alone. Primorial is here to walk the path with you.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
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