Planning for the impact of RBNZ’s interest rate rises

For many, last month’s Reserve Bank (RBNZ) announcement brought bad news. Rising interest rates and inflation will hit many small businesses hard, as customers’ disposable income will decrease.

Is it a time to panic?

No, definitely not.

But it indicates RBNZ aims to reduce the amounts of discretionary funds we have to spend. Small-businesses owners will have to review how they operate to maintain sales and retain customers.

Scrutinise your income and expenditure.

Ensure your expenses help support and generate profitable cashflows. Reduce, or even eliminate, expenses that do not help you generate healthy cash flows. For example, lease rather than rent or buy plant and equipment or premises.

Renegotiate credit terms with your landlord or major suppliers. Consider acquiring stock on a sale or return basis. And much more.

Review your marketing strategies and budgets.

We often hear from business owners who “invest” (some would say waste) hard-earned dollars on marketing “experts”.

They engage so-called social media and search engine “experts” with no track record or qualification.  And worse, they engage website developers who build “pretty” websites, but which attract no visitors.

If you want to become serious with your marketing and website, you may need to change the way you think.
If you want to become serious with your marketing and website, you may need to change the way you think.














As the saying goes “Insanity is repeating the same thing over and over and expecting different results”.

A good website will attract potential new customers, be secure, is fast and meets legal obligations.

Consider engaging a Digital Marketing Graduate or Intern. They’ll save you time and money by keeping your marketing strategies on track with quality, cost-effective support.

Evaluate your current accountant.

Are their services confined to providing you with the basics – end of year tax and compliance services? Or are they a reliable and proactive “partner” you regularly hear from?

Outsource non-core business activities.

Outsourcing non-core business activities to someone to undertake the activities which aren’t your primary focus. Such activities may include: accounting, payroll, data entry, administration, content production, and much more.

Costs savings frequently range between 40 to 60%.
Costs savings frequently range between 40 to 60%.


Outsourcing helps resolves challenges faced by skills shortage. Discover more about outsourcing here.


2023 will be a challenging year for many business owners. Good planning, combined with Kiwi spirit and determination, may make the difference between succeeding and failing.

This article was written by Mark Gwilliam, Director at Business Advisory Accounting & Tax Services Limited.

The article does not constitute accounting or legal advice and should not be relied upon as such. It contains general commentary on issues which may interest you.  You should seek professional advice before acting or relying on any issue arising from this article.

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