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June 2024, Part 4: Expenses will continue to rise
Looking at the economic situation in recent years, it is expected that the increase in business-related expenses, such as material costs, electricity costs, transportation costs, and labor costs, will continue in the future. In other words, if no measures are taken, business-related costs are expected to continue to rise. In order to survive as a company, it is necessary to make business plans and take measures, taking into account that the increase in expenses will continue in the future. It is important to be careful not to take measures after the fact.
June 2024, Part 4: Expenses will continue to rise
It is said that we are now in an era of cost-push inflation. As fuel costs such as gasoline rise, material costs, material processing costs, fuel costs, food costs, transportation costs, etc. also rise. In addition, labor costs are also rising due to increasing pressure to raise wages due to labor shortages and rising living costs.
In other words, we are currently in a situation where business costs are rising across a wide range of sectors. And it seems that this situation is not likely to change anytime soon. Yes, business costs are expected to continue to rise in the future.
What should business managers do in this situation?
If we continue doing things the way we have always done, business management may become increasingly difficult.
So what should we do? What aspects of our management should we review and change?
Should we raise prices? Should we review and reduce expenses? Should we restructure?
Or is there more that can be done?
If you are trapped by conventional business practices, you will only be able to come up with ordinary solutions. Ordinary solutions may not be enough to overcome the current situation.
In order for business managers to overcome the current situation, it will be necessary for them to not only rely on their own past experience and intuition, but also to engage in business innovation by consulting with consultants and listening to professional advice.
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