All of us, and small businesses in particular, are really being negatively affected by the high inflation we’re experiencing right now. So, we have asked the fabulous CarolRoth.com contributor network of business owners, experts, advisors and entrepreneurs to share their best tips to help small businesses deal with high inflation, as well as the rising prices and costs that are associated with it. Their answers are presented below, in no particular order.
You may notice some similar ideas listed, but I kept them separate, as something in the way one is framed may resonate differently with you.
1. A Discount to Happiness
While offering coupons has long been an effective way to drive sales, helping people save money shows your business cares about them and makes them feel happier—and relieved when their purse strings are tight. This kind of support is significant during challenging times as customers will have a positive association with your brand when they reflect upon it later.
Thanks to: Maria Shriver of MOSH.
2. Turn Up the Value Volume
Seasons of inflation aren’t when you should lower your voice; it’s the time to turn up the value volume. Emphasize the quality of your product or service. Tie that quality to a need. Rising prices and costs do not overpower needs. If the need is consistently accentuated by quality, your business will remain anchored.
Thanks to: Erma Williams of The Pomade Shop.
3. Opt for Low-Cost Marketing
During these times, you may be hesitant to sink a lot of money into Google Ads.
Focus on being found atop Google's organic rankings; the investment is significantly less expensive.
Put your efforts in optimizing your Google Business Profile listing. Reach out to your Gmail customers and personally ask them to review your business.
Partner with local businesses on a local link strategy where you get website links from their sites.
Focus on being found atop Google's organic rankings; the investment is significantly less expensive.
Put your efforts in optimizing your Google Business Profile listing. Reach out to your Gmail customers and personally ask them to review your business.
Partner with local businesses on a local link strategy where you get website links from their sites.
Thanks to: Luke Hancock of Bin There Dump That.
4. Find Opportunities
Capitalize on the trend of cutting costs and saving money during high inflation periods. In the RV and camper industry, for example, I double-down on content related to cheap campers, campers under a certain price, how to find the best deal on RVs, etc. I'm seeing record amounts of traffic to these types of articles and an increase in affiliate sales. These opportunities exist in every niche, so identify them and start capitalizing on them now.
Thanks to: Georgia McBroom of Camper FAQs.
5. Diversify Your Supply
Supply chain issues have run rampant over the past few years, and rising inflation offers yet another reason to diversify your chain of raw materials, products, etc. During economic uncertainty, it’s dangerous to be too dependent on any single source. If you experience delays in the supply chain and increased costs, your cash flow situation could become dangerous to operations. Diversify your suppliers and research back-up options to protect your business from inflation.
Thanks to: Scott Lieberman of Touchdown Money.
6. Hang on to What You Have
A good employee has always been hard to replace, but with inflation, losing an employee can hurt your profitability more than ever before. So, as much as it seems counterintuitive to offer incentives and bonuses when you're trying to save every penny, keeping your employees satisfied will save you from the time, money, and risk of hiring and training someone new.
Let your team know how appreciated they are. Set productivity and efficiency goals, and when they're reached, offer compensation.
Let your team know how appreciated they are. Set productivity and efficiency goals, and when they're reached, offer compensation.
Thanks to: Melanie Musson of QuoteInspector.com.
7. Don't Absorb Every Cost
When economies slow & things get tighter, we need to take a look & be realistic about what costs we can absorb & what we cannot.
Too many people are afraid to go to their clients with a price increase in a down economy.
Don't!
Instead, go to them & figure out how you can both work together to survive & thrive. See if they will pay upfront by credit card, create larger orders at a reduced cost, or what you can do about developing cross-promotions.
Be creative & communicate.
Too many people are afraid to go to their clients with a price increase in a down economy.
Don't!
Instead, go to them & figure out how you can both work together to survive & thrive. See if they will pay upfront by credit card, create larger orders at a reduced cost, or what you can do about developing cross-promotions.
Be creative & communicate.
Thanks to: Ben Baker of Your Brand Marketing.
8. Plan for Scalable Growth
Dealing with inflation requires more than just trying to save on costs. To navigate through the rising prices amid inflation, your small business should have a strategic financial action, including scalable growth. Scaling doesn't mean adding huge capital. Instead, you should be able to generate consistent revenue with minimal resources.
Thanks to: Jeffrey Zhou of Fig Loans.
9. Try Bartering
Ask your vendors to provide you a discount on the supplies you buy if you can provide a product or service that they need. This works best with small businesses and locally-owned vendors rather than the mega-stores. This can decrease your cost of goods sold, which is a big line item when inflation is rampant the way it is today.
Thanks to: Tim White of Milepro.
10. Spend Less Money, Invest Time
Marketing is a two-sided story that can be told via spending money (ads, purchased links, & other things) or through time and effort. Many companies choose to spend money on marketing efforts that can help them reach their goals quicker, which is completely fine. But, during inflation, it might make sense to spend less money on it and spend more time on marketing.
Rather than opening your wallet for marketing, open up your mind and get creative in order to reach your goals and boost growth.
Rather than opening your wallet for marketing, open up your mind and get creative in order to reach your goals and boost growth.
Thanks to: Joy Zaykoski of Modera Wealth Management.
11. Focus on New Customers
Inflation always opens up space for new customers that were previously unreachable, so it's important to capitalize on that opportunity. Pay special attention to your new customers and try to make it a win-win transaction for all. There's so much room to experiment with new customers, and small businesses should not limit themselves to previous methods.
Thanks to: Ian Kelly of NuLeaf Naturals.
12. Run "What-if" Scenarios
Small businesses should always look at their financial data and run "What-if" scenarios to test the potential impact of inflation and help guide their decision-making. I like to run what-if scenarios for wage increases, material prices, supply chain disruptions, etc. Use these scenarios to prepare for the worst and make decisions accordingly, and if trouble hits, you will always know what to do.
Thanks to: Harry Campbell of The Rideshare Guy.
13. Be Gentle with Price Increases
We have to face up to it, prices will probably have to rise. But try to be gentle with your customers and only raise your rates when you have to. Even better if you can raise them in increments to ease the pressure on them. Warn them in advance of any change to your prices and explain why you have had to do it. Hopefully, they will understand and you can retain their loyalty.
Thanks to: Colin Toh of Headphonesty.
14. Refrain from New Equipment
For many companies in the service industry (like us in the lawn care world), it can become quite regular to purchase new equipment, especially when something is released that is exciting and can change how you work.
But is it always needed? No.
If you can, try and refrain from purchasing new equipment unless it's needed. Make do with older equipment or find cheaper alternatives to buying new, overpriced equipment.
This can help you combat rising costs and even increase your bottom line!
But is it always needed? No.
If you can, try and refrain from purchasing new equipment unless it's needed. Make do with older equipment or find cheaper alternatives to buying new, overpriced equipment.
This can help you combat rising costs and even increase your bottom line!
Thanks to: Kyle Tobin of LawnSavers.
15. But It's Not About You
There’s nothing better than brand loyalty to support your business in hard times. Building brand loyalty is not about what clients can do for you, it’s about what you can do for them. Think outside the box.
What can you do to support your clients? How can you help get their message out to your followers? What information can you share that will deliver value & help them succeed?
When your thinking changes to one of giving rather than getting, everything changes... even your bottom line.
What can you do to support your clients? How can you help get their message out to your followers? What information can you share that will deliver value & help them succeed?
When your thinking changes to one of giving rather than getting, everything changes... even your bottom line.
Thanks to: Laura Templeton of 30 Second Success.
16. Just Say No
Eliminate loss leaders.
Have shorter hours to offset staff burnout so that your team is not only more efficient but enthusiastic.
Say no to unprofitable transactions and difficult clients.
Have shorter hours to offset staff burnout so that your team is not only more efficient but enthusiastic.
Say no to unprofitable transactions and difficult clients.
Thanks to: Rick Canale of EXOTIC FLOWERS.
17. Automate & Reduce Turnover
Using automation across your organization won’t just help you save expensive labor hour costs but also reduce costly turnover & hiring expenses. Many businesses experience high turnover because their team is unsatisfied with their roles. Consider how you could rearrange roles by removing many of the mundane and tedious tasks on your team’s plates. Employees can focus on the tasks that are challenging and enjoyable, boosting motivation.
Thanks to: John Li of Fig Loans.
18. Don’t Hesitate to Raise Prices
While it is natural to want to keep prices low for you customers, it is necessary to raise your prices to keep up with rising costs and inflation. Otherwise, rising costs will start eating into your profits and hurt your business overall. Because costs are rising across the board, most people are becoming accustomed to the rising costs and even expect it. To help deal with rising costs, we recommend ramping up customer service and doing everything you can to go the extra mile for your customer.
Thanks to: Kim Hawkins of Events Wholesale.
19. Check Out This Marketing Math
One thing that businesses can do right now is to start using some very essential advertising and marketing math that can help all kinds of businesses make a lot more money, in good times and in bad.
The math will give you more of the information you need to make key marketing decisions with far less risk, and businesses of all kinds can use the math to help them make a lot more money.
The math is called "The Barrows Popularity Factor." You can see more about it at www.barrows.com.
The math will give you more of the information you need to make key marketing decisions with far less risk, and businesses of all kinds can use the math to help them make a lot more money.
The math is called "The Barrows Popularity Factor." You can see more about it at www.barrows.com.
Thanks to: Robert Barrows of R.M. Barrows Advertising.
20. Alternative Assets
The increased acceleration of inflation that most Americans experience in their daily life is evidence of an uncertain future where the purchasing power of the dollar seems to be becoming less valuable daily. The best way to prepare for inflation is to buy alternative assets like collectibles and cryptocurrency such as Bitcoin. These assets are only a potential hedge against massive inflation and may prove ineffective. God help us all if the central banks lose control of their Frankenstein.
Thanks to: David Reischer of LegalAdvice.com.
21. Use Proactive Pricing
Determine what your pricing needs to be in 12-24 months to operate sustainably if your operating costs are much higher (10% or more) than now. Add a cushion (at least 10%). Communicate this price increase to your current customers as effective upon renewal. Offer a discount if they lock in now. Ask for more than you need upfront. Buyers get tired of multiple smaller price increases. You may not get everything you want, but you’ll fare better not playing catch-up with inflation.
Thanks to: Brian Zapf of Flight Financial.
22. Grow Your Network
Supply chain interruptions and fears about them drive inflation. Securing inventory is one of the best methods to protect your organization against inflation. You must connect with your suppliers to learn which items are in demand. Obtain a long-term contract with your suppliers to preserve inventories and pricing. Expand your network so you have choices when supply chain concerns affect your inventory. Building a network takes time and effort, but it will save you time and worry in the long run.
Thanks to: Dan Close of We Buy Houses in Kentucky.
23. Manage Your Finances Wisely
Having a lot of cash on hand might be a bad idea when prices rise. Your cash reserves may lose buying power as inflation increases. Keep up with growing market prices by investing that money. In order to ascertain which assets are most appropriate for your particular circumstances, you should speak with a financial counselor. Keeping just a few dollars in your account is the best strategy for preserving your money's buying power.
Thanks to: Mike Albrecht of Fresha.
24. Save Time with Automation
Automate when possible. To combat the costs associated with inflation, automate tasks such as email, contract creation, invoices, general ledger entries, and sales and marketing. Automation reduces errors, streamlines practices, and can improve customer satisfaction.
Thanks to: Isaiah Henry of Seabreeze Management Company.
25. Make Your Business Plan Known
Having a monthly meeting to examine your business's strategy may be quite beneficial. These meetings aren't always accessible, and some employees find them a waste of time. If you're going to keep everyone on the same page, it's a good idea to make your plans public.
You may motivate your company's stakeholders to contribute more to its well-being by providing them with information on the company's health. All that is required of you is to provide access to this information.
You may motivate your company's stakeholders to contribute more to its well-being by providing them with information on the company's health. All that is required of you is to provide access to this information.
Thanks to: Kim Abrams of Abrams Roofing.
26. Diversify Your Revenue Stream
Diversify your income sources or identify low-maintenance passive money providers to fight inflation. So, if one channel or section of your small company suffers, others may pick up the slack and maintain cash flow. It's also a strategy to focus on inflation-resistant company concepts. If you operate a goods-based firm whose profit margin is being impacted by growing raw material costs, an online class or e-book might bring in more income with minimum additional investment.
Thanks to: Edward Wright of Cereal Secrets.
27. Reevaluate Your Prices
Make sure your prices are fair during inflationary periods. Analyze your competition and research your industry. You want to be able to make a profit, but you also don’t want to lose customers during a time when people are being cautious with their finances. See how you can optimize practices to cut down on overall costs.
Thanks to: Katie Lyon of Allegiance Flag Supply.
28. Look at Your Supply Chain Risk
If you’re vulnerable to certain risk factors, create backup supply chains, find a domestic supplier if you’re currently using an international supplier, and stock up on core supplies. When dealing with high inflation, the last thing you want to do is incur additional costs due to breaks in your supply chain.
Thanks to: Melanie Edwards of OLIPOP.
29. Get Creative! Give Time!
Owners invest in training & courses every year. With profit/money tighter, expenditures move to the bottom. Offer more time to save. Now is the time to provide much longer notifications and be creative with early bird specials and payment options. Examples: List upcoming events in your newsletter months in advance. Offer $ off instead of lots of paper/video early bird specials. Lower monthly prices a groups you run, but raise the number of people in them.
Thanks to: Maria Marsala of Elevating Your Business.
30. Turn Back the Clock
Once upon a time, you spent less as a company. It happens for every company. As profits and the number of customers go up, so does the cost of operating.
As a business, you must go back and figure out what new expenses you have that can be eliminated in order to fight the rising cost of living and inflation. Perhaps certain tools you subscribe to or expense budgets you allow your employees to abide by can be removed.
By turning back the clock, you can get back to being a much leaner company.
As a business, you must go back and figure out what new expenses you have that can be eliminated in order to fight the rising cost of living and inflation. Perhaps certain tools you subscribe to or expense budgets you allow your employees to abide by can be removed.
By turning back the clock, you can get back to being a much leaner company.
Thanks to: Lucie Chavez of Radaris.
31. Dealing with Inflation
In pest control, for example, people often will shop for the lowest prices. One thing we are doing is offering seasonal packages instead of just one-time services; that way our customers feel a lot better about spending.
Thanks to: Sholom Rosebloom of Rosenbloom Baltimore Pest Control.
32. Embrace Vertical Integration
Embrace vertical integration. While you can’t avoid the inflationary effect on your material costs, you can avoid outsourcing the rest of your production elsewhere. This move comes with extra short-term costs to install the necessary framework, but you’ll save over the long-term and inflation-proof your business. Vertical integration can help you fight inflation and offer consumers your products at lower prices - a fantastic competitive advantage when you need it most.
Thanks to: James Diel of Textel.
33. Your Competition Feels It Too
Dealing with inflation can be tough for a small business. You may not have the same budget as a larger company to work with, but that doesn't mean you're powerless. Remember, your competitors will be feeling the pain too. If you can outlast your competitors, you can not only survive but thrive. View these times as a massive opportunity. While others may be forced to close up shop, you can increase your market share in tough economic times. Often, it's the best time to do so.
Thanks to: Nick Patrocky of nickpatrocky.com.
34. Reduce Expenses Where Possible
Small businesses should reduce their expenses as much as possible. For example, they can use a hybrid or remote office model that allows the flexibility to move to a smaller and less expensive office. They can save their expenses by hiring employees from online platforms. Substitution is also a good idea to deal with expenses. You may find alternatives that can save you money.
Thanks to: Ricky Liu of Yoyipet.
35. Offer Something More
Ok, so first, with inflation and all your costs going up, you have to be intelligent and make sure you have adjusted your costs to reflect that... to a degree. People will accept a reasonable price increase, but if you go crazy it will seem excessive. But remember, you want to also increase your product or service offering to exceed their expectations to warrant the extra cost. People will still pay for quality!
Thanks to: Craig Wolfe of CelebriDucks.
36. Manage Your Cash Flow Smartly
Cash flow helps deal with inflation for small businesses. Keeping a large amount of cash on hand during inflationary periods can be damaging. Inflation can decrease the purchasing power of your cash savings. If these prices rise, consider investing your savings. However, you should keep a minimum of cash in your account to preserve the purchasing power of your money. Prepare your cash flow projection ahead of time to understand your financing need.
Thanks to: Nick Yu of BeadNova.
37. Fix Operational Inefficiencies
With inflation on the rise, lowering costs is a priority, but thoughtless cuts won't help. Addressing operational inefficiencies is the key to keeping labor and tech costs low while boosting productivity. Implementing tech tools and automation, cutting subscriptions and platforms that don't serve you, taking stock of administrative expenses, and more can help ensure that you're not bleeding cash without noticing and can help your business weather the storm that is inflation.
Thanks to: Stephen Light of Nolah Mattress.
38. Staying Ahead of Inflation
Invest in automated revenue management or digital record keeping to lower fixed costs.
You can unify these operational aspects of your small business using a solid project management tool like Asana, which we use. For peace of mind you can still use human resources to double check figures, but on an as-needed basis.
This assist to your bottom line will become more clear over time. Many of these business tools have easy onboarding and helpful support teams should issues arise.
You can unify these operational aspects of your small business using a solid project management tool like Asana, which we use. For peace of mind you can still use human resources to double check figures, but on an as-needed basis.
This assist to your bottom line will become more clear over time. Many of these business tools have easy onboarding and helpful support teams should issues arise.
Thanks to: Jerry Han of PrizeRebel.
39. What's Old is New Again
An economic downturn is like a hurricane. It's nasty and sometimes rearranges the landscape. However, it's short lived and when it's over, the weather is always beautiful. The characteristics of every recession are different. However, we've weathered the storms before. If you're too young to remember the great recession in 2008-2010, seek advice from senior people in your organization or family and create a playbook based on lessons learned from the past. Prepare, Plan, and stay Positive.
Thanks to: Tom Scarda of Tom Scarda's Franchise Academy.
40. Utilize technology
Skype should be used in place of in-person meetings for conducting business. If it is at all feasible, you should investigate the possibility of doing away with office space entirely and relying simply on e-mail, phone, and Skype to communicate with employees. For the purpose of ironing out the details, weekly in-person meetings can be utilized.
Thanks to: Dean Lee of Sealions.
41. Think on a Global Scale
The chances of successfully marketing your product in other countries improve when the value of the dollar falls. Consider expanding your market into Europe or other English-speaking countries in East Asia, but make sure to perform your research first so that you can accurately design your product to the interests of customers in those areas. If you want to reduce costs, you should try to lower costs by buying in bulk and forming ties with other business owners.
Thanks to: Alex Smith of Lucky Bobbleheads.
42. The BEST Will Survive!
I launched my business at the beginning of the last Great Recession and crushed it! Why? Because we were so good at what we did and small businesses knew they had to invest in things that moved the needle. So raise your prices because you're worth it and discounting only serves to make people question your worth. Then, take a look at the subscription tools you're using and dig for better options. We've been able to cancel a number of tools just by using what Canva now offers.
Thanks to: Bobbi Baehne of Think Big Go Local, Inc.
43. Don't Wait, Raise Your Prices!
Keeping customers happy is always the #1 priority which makes raising prices a sensitive topic, but in today's environment, you have to make adjustments to maintain a healthy operating margin. Small increases over a longer period of time is better than making large adjustments that shock your customers and make it harder for them to adjust to the increased costs.
Thanks to: Matthew Gillman of SMB COMPASS LLC.
44. Position + Perception = Payoff
Positioning will be key to how successfully we'll navigate the dark times ahead.
Perception is everything. The words we use are declarative of our worth, so choose wisely.
Perception is everything. The words we use are declarative of our worth, so choose wisely.
Thanks to: Annesa L Lacey, Biographer & Copywriter of a.L.interpretations.
45. Embrace Flexibility
Our one best tip to help small businesses deal with high inflation and the rising prices and costs associated with it is to stay creative and flexible. There is always a new way to view things and adapt to help your business thrive in a changing climate.
Thanks to: Dorbens Joseph of D.J. Print Lab.
46. Shop with a List
Be sure you do your research first and then limit your spend to current needs vs wants. Take a list and stick to the list so you won’t get distracted to impulse purchases.
Thanks to: Mitch Krayton of Krayton Travel.
47. By Reducing Product Variations
If you offer lots of variation of the same product, having an inventory for all of them adds to the extra cost that's eating away your profits. Especially in this inflated time! Instead, find out the top few variations and only offer those to the customers. If you do so, you'll still have the majority of your existing customers and won't have to spend extra on inventory costs for those left out variations. It also removes the decision fatigue from the customers and leads to more sales!!
Thanks to: Grant Lukin of Nimble Australia.
48. Offshore Basic Tasks
My number one tip to save money for small businesses in today's high inflation environment is to outsource basic tasks - data entry, website management, etc., to foreign workers via respected platforms such as onlinejobs.ph or jobrack.eu. Pay rates for top talent in the Philippines and Eastern Europe are far lower, resulting in huge savings.
We hired our virtual assistant from the Philippines via onlinejobs.ph. The process is straightforward and she is talented, diligent and adaptable.
We hired our virtual assistant from the Philippines via onlinejobs.ph. The process is straightforward and she is talented, diligent and adaptable.
Thanks to: Rick Wallace of Tackle Village.
49. The Good Old 80/20
You can only save so much on your labor or raw material costs. But with productivity, it’s different. So, use the 80/20 rule instead. Improving your productivity will help you utilize your resources better and have a cascading effect. Avoid multitasking and improve focus. Use a calendar and stick to it. Every time you carry out a task, ask how you can do it better, faster, cheaper. Restrict meetings to 15 minutes max. Working on individual productivity will produce bigger and lasting results.
Thanks to: Mayank Batavia of QuickEmailVerification.
50. Little Things Go a Long Way
As a business we can all start picking up small "luxury" items that are non-essential. A software package we don't use that much, a magazine subscription we don't read, a networking event we don't go to anymore. These little things may not be essential to the business. So, if you are stressing over rising costs and inflation... take control of what you can. These little things add-up and you can take control of them.
Thanks to: Simon Royston of The Recruitment Lab.
51. Double-down on Growth Channels
When business leaders are staring down economic uncertainty, they look at marketing expenses. However, the risk with cutting marketing in a downturn is that prospects won't recall your brand when the market improves. Ramp up your top four acquisition sources and nix the rest.
Retaining existing clients is equally as important. Send a warm thank you note, ask for reviews, and offer to adjust payment terms such as term length to alleviate any financial pressure that might not become a reality.
Retaining existing clients is equally as important. Send a warm thank you note, ask for reviews, and offer to adjust payment terms such as term length to alleviate any financial pressure that might not become a reality.
Thanks to: Joe Manna of Alyce.
52. Niche Down Marketing Campaigns
One of the best ways to survive and grow your business in this highly inflated times is to niche down your marketing to a smaller group or a particular area. There will be less competition and higher profit margin. If your product or service is good and you target smaller groups, there's nothing that can hold you from growing. Not even inflation itself.
Thanks to: Tony Vangelburg of RayPCB.
53. Share a Ride and Save Fuel
Here's a tip for saving on fuel - which will only get more expensive. If you're going to a networking meeting, then share a ride with some of the other participants, save on fuel, and start networking in the car.
Similarly if your staff are going to a job or to a meeting, incentivize them to share a ride & save on the fuel. The incentive could just be chocolate or treats all round!
Similarly if your staff are going to a job or to a meeting, incentivize them to share a ride & save on the fuel. The incentive could just be chocolate or treats all round!
Thanks to: Laurence Jones of KidsNaturally Photography.
54. Keep Looking Ahead
Serious financial and staffing decisions will need to be made for your business to weather the rising inflation. Although cutbacks are necessary, inflation will end and when it does, you want your business to be ready to move forward quickly. Look ahead and make sure that changes you implement during these challenging times do not impact negatively on your long term business strategy; indeed growth is essential for the future of your business.
Thanks to: Andrew Porwol of Garden Centre Shopping.
55. Create Financial Visibility
Understanding your spending will enable you and your business to tackle inflation head on. Break your business's finances into main categories and review where your money is being spent and assess areas where that spending can be reduced. Implementing a high management authorization process that's aligned with your business's long term strategy will keep your business nimble and its cash flow healthy. Avoid making large cuts before reviewing clear spending patterns.
Thanks to: James Chapman of Bella Bathrooms.
56. Avoid Sweeping Price Increases
Tempting as it might be to raise prices across the board, this move could be a costly mistake that might damage your business irreparably. Increasing your prices may feel like the simplest way to combat inflation but it's important to keep in mind that your customers are also feeling the pinch. Focus your efforts on targeted increases on products that have a lower return on investment but leaving more profitable goods or services with their current price ticket.
Thanks to: Amy Bos of Mediumchat Group.
57. Increase Visibility
In order to deal with inflation in business, you need to have a clear understanding of your company's spending. The first step is to get spending visibility, which means being aware of all company expenses and who is spending what. This will help you to find ways to cut costs and save money. It is also important to be prepared for inflation by planning ahead. Once inflation comes to your industry, it pays to be ahead of the curve. Only with strong spending data will you be ready.
Thanks to: Peter Thaleikis of PastableLists.com.
58. Trim The Fat
Rather than taking drastic streamlining measures, simply trim the fat of your business to improve its health and agility. Before starting the process, revise your long-term business strategy to ensure you keep resources, projects, and investments that are essential for future growth of your company. Trimming down investment and spend should be aligned with your company's overall strategy. The aim is to weather inflation without stunting your business's future growth prospects.
Thanks to: Keron Howe of Property Nation.
59. Need or Want?
Most businesses use apps and items that make their life easier or that they have become used to having. Weathering this inflation storm requires serious cost cutting for many businesses. To effectively cut costs, ask yourself if there is a real business need for an item or if you just want to have it. Using this simple method, you can significantly reduce spending without it impacting your businesses operational efficiency.
Thanks to: Matt Jackson of Matt Jackson Consultancy.
60. Invest in Your Employees
Strategically investing in things that will support your employees will pay dividends in return. Employee turnover comes with a very high cost, so it's worth it to invest in your team so that they stay with your company. Consider providing employees with benefits that truly support their professional growth or personal well-being. This can be in the form of providing training to help them learn new skills or adding mental health and well-being initiatives to your workplace.
Thanks to: Logan Mallory of Motivosity.
61. Getting Up Early to Save Gas
With gas prices constantly climbing, we have offered employees the chance to start work a 1/2 hour earlier and leave a 1/2 earlier too. The goal is to help employees with their commute by enabling them to drive prior to the rush hours times. Many have stated they are getting to work sooner with a faster commute and really avoiding the traffic snarls that used to cause them to sit in traffic for long periods of time. We are saving them gas, money and time - every little bit helps!
Thanks to: Ed McMasters of Flottman Company.
62. Be Transparent
When small businesses are trying to deal with inflation, it is not uncommon for them to increase the prices of their products or services in order to compensate. And although most customers recognize that this can happen, it is important to always be transparent and open about the price increases and not try to hide it. Your clientele will appreciate the honesty and will be more likely to continue to support your small business.
Thanks to: Shaun Connell of Texas Divorce Laws.
63. Don't Cut Corners Just Yet
When owning a small business during this time of inflation, it can be easy to simply cut costs in all areas of your business. However, doing so can actually be harmful and you might end up being worse off than you were. Many business owners tend to look at laying off employees as their first step, but doing so can lead to low employee morale and increased workloads. Always make a plan first to ensure you are cutting costs in the right places.
Thanks to: Chris Salmon of Quittance Legal Services.
64. Go Paperless
Now is the perfect time to cut back on office supplies as the cost for these items can really add up. Going paperless is a great solution to saving money, and will also make it easier to keep track of important documents. You can save money on filing systems, paper, and printer ink by having everything uploaded to your work computers instead.
Thanks to: Sean Chaudhary of Alchemy Leads.
65. Decrease Your Office Rent
One of the major costs of owning a small business is the rent you pay for an office space. If you are able, it can be in your best interest to instead encourage remote work or share a workspace with other businesses. Co-working spaces are becoming much more common as it can help to cut the expense of rent in half. Also, encouraging employees to instead work remotely can help to decrease your office related bills.
Thanks to: Hart Cunningham of Enroll.
66. Look to Real Assets
Typically, there is one alternative to cash assets that are losing value to inflation - real assets. Real assets can be buying excess inventory (knowing that your dollars will buy more today than they will tomorrow), buying investments (like stocks, bonds, or real estate -- like the office your business is in), or buying cash alternatives (gold, crypto). Those items come with additional risk. However, inflation is a real risk as well.
Thanks to: Scott Eichler of Standing Oak Advisors.
67. Reduce Non-strategic Costs
Non-strategic costs such as utilities, office supplies, team events, etc. don’t generate revenue. Plan these costs by analyzing the usage and bring them down to a minimum. The revenue saved with this strategy will add to the profit thus helping small businesses not to transfer the price effects to customers to win their loyalty. Also, with this, your prices will remain market competitive, providing you an edge to have a repetitive business to maintain your MRR (Monthly Recurring Revenue).
Thanks to: Ronald Williams of BestPeopleFinder.
68. Give Customers What They Want
A great product and personal service makes customers come back. So, in a downturn, focus on providing what customers want. Add products. Automate order updates so they hear from you more often. Help them pick the best value, like a product they can use for multiple purposes. Offer discounts like a loyalty program, reseller pricing, or something like our max saver that discounts products if we can put our branding on the back. Work with customers when times are tough, so they stay with you after.
Thanks to: Vladimir Gendelman of Company Folders, Inc.
69. Leverage Relationships
Each of us has colleagues and allies. And some things can be done cheaper as a team or as a group than on our own.
That could include bulk purchasing. It could include shared space. It could include joint promotions. Or it could even include (cover your ears) bartering.
That could include bulk purchasing. It could include shared space. It could include joint promotions. Or it could even include (cover your ears) bartering.
Thanks to: David Leonhardt of THGM Writing Services.
70. Look Into Green Initiatives
The good thing with going green is that not only does it help the environment, but you'll also see a change to your monthly expenditures. Even simple things like going paperless can help you fight inflation, as well as coworkers sharing rides into the office. When they say that every little bit helps, that's entirely true when it comes to reducing your carbon footprint AND saving money. It's fortunate that you can do both at the same time!
Thanks to: Ryan Rottman of OSDB Sports.
71. Out-of-the-Box Marketing
It's important to still remain visible during times of financial uncertainty, so that your customers will trust in your brand. However, the most expensive campaigns aren't always the best. Instead, look into newer, more innovative strategies that offer much more for your initial investment. To battle inflation, it's crucial to keep an eye on your budget, but still stay relevant and top of mind to consumers.
Thanks to: Shaun Price of MitoQ.
72. Fulfill You Customers' Needs
In a time when inflation is rising and every dollar counts, it's more vital than ever to really look into the needs of your customers. Pay attention to the data and their individual feedback, and learn to anticipate the products and features that they're looking for. In this way, you can better serve your community, your customers and your company, in general.
Thanks to: Mark Sider of Greater Than.
73. Leverage Automation
My number one tip for small businesses to deal with inflation is to leverage automation to reduce labor costs. Times of economic distress mean that you need to cut down on as many expenses as possible, and using the latest tools and technology allows you to do that. You won’t need to hire employees for things as simple as scheduling meetings, tracking invoices, or collecting payments. This saves money and boosts productivity, helping you maintain healthy sales and profit margins.
Thanks to: Kurt Walker of Cream City Home Buyers.
74. Reassess Profit Margins
One of my best tips for small businesses to deal with high inflation is to reassess their profit margins. When high costs are causing your profits to drop, it is important to analyze your profit margins and figure out where you can cut costs in order to maintain the margins. An efficient cost management strategy is a must during inflationary times. Reviewing your margins on a timely basis can help businesses avoid any cash flow problems further down the line.
Thanks to: Brandon Walsh, Founder of Interly.
75. Reducing the Product Size
My number one tip for helping small businesses deal with inflation is reducing the product size without changing prices. This is the best way to ensure your customers are happy with your services, even during uncertain times. That’s because raising the prices makes it difficult to buy the products. Hence, it’s better to combat inflation strategically and shrink product sizes rather than lose valuable customers. As a result, you are profitable amidst a recession.
Thanks to: Cristina Cason of Texas Family Home Buyers.
76. Inventory as a Physical Hedge
Since there is little to no relief in sight with respect to inflation, focusing on materials crucial to sales or movements is an ingenious way to spend cash. Prices are most likely to increase, so the main goal should be planning the leverage around working capital. To measure the success of this tactic, you can track metrics like inventory turnover ratio and average days in inventory.
Thanks to: Jason Ault of Element Home Buyers.
77. Secure Inventory
Supply chain disruption is the most common concern for small businesses during inflation. It is vital to secure the inventory they need to remain operational.
Businesses would have to remain in constant contact with their suppliers. This would help them get an idea of what products are in high demand and enable them to anticipate future supply patterns and prepare adequately.
If possible, they can negotiate a long-term contract with their vendors to maintain a stable inventory and price.
Businesses would have to remain in constant contact with their suppliers. This would help them get an idea of what products are in high demand and enable them to anticipate future supply patterns and prepare adequately.
If possible, they can negotiate a long-term contract with their vendors to maintain a stable inventory and price.
Thanks to: Alex Williams, CFO of Find this Best.
78. Leverage Automation
My best tip for helping small businesses combat high inflation is to leverage automation to reduce costs. Modern enterprise technology can help businesses automate many of their core processes such as marketing, recruitment or bookkeeping. By automating these processes and workflows, small businesses can reduce their dependence on human resources. This will help decrease costs and improve efficiency so small businesses can maintain their profit margins.
Thanks to: Andy Kolodgie of Sell My House Fast.
79. Diverse Product Portfolio
The best tips for small businesses to deal with inflation is to clean up the product and service portfolio with an eye toward what you can make, and sell. To meet demand and contain costs, small businesses look to simplify the supply chain. Popular brands like PepsiCo, Campbell and Coca-Cola already follow this rule by cutting down on product offerings. Companies should be focusing on high-margin core products with in-demand consumer services.
Thanks to: Patrick Smith of Firesticktricks.
80. Introduce Mini-Sized Products
My number one tip for helping small businesses deal with inflation is to introduce mini-sized products. This will help you lower production costs while also maintaining healthy profit margins. The best part is that you don’t have to disappoint customers by increasing the product prices. Instead, you’ll just offer downsized items at lower or the same costs. As a result, you can keep your business afloat during times of economic distress.
Thanks to: Elizabeth Hicks of ParentingNerd.
81. Automate Their Processes
For small businesses, the best strategy to cope with inflation is to automate and streamline their processes.
By adopting technology, small businesses can achieve operational efficiency and leverage it for new revenue streams. Technologies like no code automation and cloud-based SaaS platforms, also enable these businesses to enhance customer experience.
These technologies enable small businesses to computerize the work previously done manually and save up on labor costs.
By adopting technology, small businesses can achieve operational efficiency and leverage it for new revenue streams. Technologies like no code automation and cloud-based SaaS platforms, also enable these businesses to enhance customer experience.
These technologies enable small businesses to computerize the work previously done manually and save up on labor costs.
Thanks to: Eduarda dePaula of FindByPlate.
82. Stocking Up on Supplies
My number one tip for small businesses to deal with inflation is stocking up on supplies. It might not seem a priority because you might want to deal with other crucial issues right now, such as employee retention and compensation. But it’s essential to help you cut back on costs when there are supply shortages. Hence, it enables you to manufacture products during a recession. This way, you don’t lose your customer base or financial stability during uncertain times.
Thanks to: Werner Jorgensen of Heatxperts.
83. Stock Necessary Supplies
Since prices keep rising, small businesses should consider stocking up on basic supplies and core materials. This will help save money that can be used for other aspects of the business. Aside from that, this will help to keep the company from becoming caught in future supply chain disruptions. Furthermore, renegotiating with suppliers is beneficial. If your suppliers offer the best value to help your business prosper, consider extending your contracts with them to lock in current prices.
Thanks to: Michael May of Wimpole Clinic.
84. Strategically Increase Prices
I think businesses should let their customers know when they raise prices. Make an official announcement on your website, Facebook page, or retail location. They have enough time to buy at the current price because of this. To encourage them to take action, you may even advertise it as a "last chance sale." You want to show that you know how it affects your customer and you are doing everything you can to ease their stress. You want to preserve their loyalty, and showing that you care will help.
Thanks to: Lulu Albanna of WRC Media.
85. Review Your Product Offerings
This, in my opinion, is the ideal way to cope with inflation because your product offerings are so tightly linked to price power. There may be some products that are more vulnerable to inflation than others. It's possible to control inflation in your company by eliminating underperforming items. A healthy business is one that doesn't waste time or resources on inventory that doesn't add any value.
Thanks to: Dominick DeJoy of WINDOW.
86. Debt Becomes a Bigger Risk
There will be a significant increase in the interest rate charged to renew a variable-rate loan when inflation is strong. Reduce your debt as quickly as you can. If you can, it's in your best interest to lock in a rate. The Fed will continue to raise interest rates until they believe inflation is under control. This is not an exact science. Possible over- or under-compensation exists. You should focus on what you can handle rather than worrying about the numerous things outside of your control.
Thanks to: Adam Wood of RevenueGeeks.
87. Stock Up on Inventory
The time to spend money is now, if you have it. Buying products before they go up in price can give you a leg up on the competition. Just remember rule number one, which is that cash is king. Don't put your financial stability at danger by spending money on inventory.
Thanks to: Michael Hess of Code Signing Store.
88. Efficiency and Productivity
When inflation is high, wages and salaries go up (this is a real nightmare for business). Invest some effort into perfecting your methods. Find any trashy spots. Invest time in planning out and enacting more time- and labor-saving procedures.
Thanks to: Andrew Dale of CloudTech24.
89. Office Downsizing
The epidemic showed that businesses can operate remotely as well as in an office. Unsurprisingly, many employees would rather work from home part-time or full-time. If your business works effectively with fewer staff, downsize when your lease is up. Work constantly. Check your long-term lease to see whether you can sublet unused space.
Thanks to: James Rehm of Skuuudle.
90. Email Marketing Boosts Sales
For small businesses, email is one of the most cost-effective ways to market. Send out periodic emails to your email list if you have one in order to stay top-of-mind among your clients and potential clients. Promote your products, services, and special deals by providing helpful industry information, advice, and resources to your customers. Start building an opt-in email list if you don't already have one.
Thanks to: Frederic Linfjärd of Planday.
91. Maximize Your Investments
When inflation hits, everyone suffers. However, small businesses might have trouble weathering the storm compared to other companies. My number one tip for small businesses is to make the most of your business investments. For example, instead of having multiple programs devoted to HR that organize benefits, scheduling, and time off, migrate to one program that does it all. This process can help businesses evaluate efficiency and remove redundancy, ultimately smoothing out workflows.
Thanks to: Kyle Risley of Lift Vault.
92. When Added Value is Costly
The temptation is to provide 'added value' when raising prices. What we often forget is the cost of that value. For example, if the freebie you've added for clients and announced alongside your 4% price increase, just increased your cost by 5%, you're losing money. It's obvious when the math is done for you, but... maths. Don't negate new profit by building in extra costs in your price increase!
Thanks to: Cathy Tibbles-Mitchell of WP Barista.
93. Hire VA to Overcome Inflation!
If you're dealing with difficulties in your business due to the ongoing inflation, outsource your manpower. I have got top talents from different countries with a cheaper cost of labor that allows me to overcome the rising prices to hire a professional here in USA. Hence, my company will continue to operate with cost-effective manpower expenses with the help of my virtual assistants.
Thanks to: Casey TeVault of Casey Buys Houses.
94. Get Longer Subscriptions
I recommend opting for longer subscription plans for all essential business tools. These offers provide better value over time and let you avoid unexpected price increases that usually come with inflation. You may even get the chance to negotiate for a better rate with your provider to minimize costs on unavoidable expenditures.
Thanks to: Shaun Connell of Rental Property Calculator.
95. Implement Many Revenue Streams
For instance, your business niche is virtual assistance. Consider other functions that align with it—like email marketing, website optimization, and other niches that route with virtual assistance. This helps small business owners combat inflation by refraining from confining their revenue to a single range. Ultimately, having numerous revenue sources allows company owners to have backup plans if a certain service in their specialty has been impeded by the economic downturn.
Thanks to: Brian Hong of Big Easy Roofing.
96. Examine Current Initiatives
Consider evaluating your spending and ongoing initiatives as part of your inflation plan. Even if you aren't concerned about inflation, this is sound advice. An audit is a terrific approach to determine which projects are successful and how much money you're wasting.
In my opinion, the Sunk Cost Fallacy is a common blunder that many individuals commit. People are likely to continue investing in anything if they've previously invested time, money, and effort into it psychologically.
In my opinion, the Sunk Cost Fallacy is a common blunder that many individuals commit. People are likely to continue investing in anything if they've previously invested time, money, and effort into it psychologically.
Thanks to: Zephyr Chan of Better Tools.
97. SMB's Guide to Inflation
Inflation will always be an issue for businesses, especially for those small organizations starting their journey. That's why business owners like me suggest to those owners using their previous inventories for promos.
This way, they won't waste those resources and use the accumulated funds from those promos for their current services. Thus, they must be resourceful in keeping their business sustainable with this inflation.
This way, they won't waste those resources and use the accumulated funds from those promos for their current services. Thus, they must be resourceful in keeping their business sustainable with this inflation.
Thanks to: Lily Wili of everwallpaper.
98. Form Strategic Alliances
In my opinion, by forming alliances with businesses that complement yours, you may be able to counteract inflation by increasing brand recognition and, as a result, your audience. This method of marketing to a new segment of the clientele can allow you to split advertising expenditures with your partner while also generating a new revenue stream, I believe.
Thanks to: James Crawford of Deal Drop.
99. Build Resilience
A great lesson from the pandemic - that our company continues to build upon during the inflation period - is building resiliency within our system.
Resilience will focus on being efficient, but will ensure you retain the talent and skill while optimizing all process aspects to ensure the returns are maximized. Building resilience within our company has helped us navigate one tough period and following the same concept will help us sail through any outbreak.
Resilience will focus on being efficient, but will ensure you retain the talent and skill while optimizing all process aspects to ensure the returns are maximized. Building resilience within our company has helped us navigate one tough period and following the same concept will help us sail through any outbreak.
Thanks to: Nicole Thelin of Low Income Relief.
100. Modify Quantity Not Pricing
Rather than increase prices directly, see if you can pass along a more subtle price increase. Keep your prices the same, but slightly reduce the quantity of your product sold at a given price point. So if you are selling a 5 ounce candy bar for $1, start selling a 4.5 ounce candy bar for a $1. The smaller and more subtle changes in quantity are more likely to result in less negative customer feedback than if you charged $1.20 for that same 5 ounce candy bar.
Thanks to: Lou Haverty of Enhanced Leisure.
101. Improve Your Productivity
My one best tip for small businesses to deal with inflation is to improve their productivity while keeping the cost at a minimum. Whether you achieve it by improving the shelving system in your warehouse or increasing the shelving capacity to store more products at lower prices, or introducing AI and/or software tools to automate processes, it is imperative to do it at the earliest so you can increase your profit margin while keeping your cost same or at the bare minimum.
Thanks to: Alice Li of First Day.
102. Provide Good Feedback
When customers see good feedback is given to a brand, they become convinced that it is a trustworthy one. In that case, they will buy from them and avail their products and services. However, ensure that your feedback is authentic, or you might harm the brand’s image, which can lessen its sales and make it more challenging to overcome high inflation rates.
Thanks to: Shannon Steinberg of Allied Van Lines.
103. Control What You Can!
My real estate investment company in Philadelphia has definitely felt inflation this year! One tip for small business owners is to focus on your inputs. They're in your control. For us, it's building supplies such as lumber and finishes. Be strategic about buying in bulk and storing for future use. Run an analysis on input substitutions to make sure you are lowering costs. Apply this thinking to your financing too! Look for creative financing options to mitigate interest rate pressure.
Thanks to: Doug Greene of Signature Properties.
104. Communicate Price Hikes
Customers shouldn't be surprised to learn they're paying more when they shop online or receive their invoices. If you're open with your customers about the reasons for price increases, they're more likely to put up with them and remain loyal to your brand.
Thanks to: Sam Eastwood of LearnMate.
105. Leverage Your Suppliers
Inflation causes problems for suppliers too and is why it is important to leverage those relationships to battle inflation. Suppliers do not wish to lose good clients, thus, leveraging that desire to negotiate more advantageous terms can be effective in dealing with inflation.
Renegotiating terms, aligning payments with cashflows, getting deals on larger orders, or simply delaying payments, can help battle inflation and lessen financial strain.
Renegotiating terms, aligning payments with cashflows, getting deals on larger orders, or simply delaying payments, can help battle inflation and lessen financial strain.
Thanks to: Cody Candee of Bounce.
106. Increase Income & Productivity
Costs can be compensated if new customers are brought in. Reducing the impact of inflation is possible even with financial incentives such as awards and bonuses.
Thanks to: Ellie Shippey of Lumina Pro.
107. Be Adaptable
I think the best thing small businesses can do right now is to continue being adaptable. Constantly evolve your company to compete with markets and stand out as a great place to work and shop. This may mean raising prices, or collaborating with your community in innovative ways, or retiring products that aren’t bringing in enough profit. Small businesses need to learn to operate on margins that aren't razor thin so that they can pay employees adequate wages and survive times like these.
Thanks to: Carter Seuthe of Credit Summit.
108. Focus on Services
Firms should avoid bearing the brunt of increased input costs as much as possible while maintaining a close watch on their bare minimum break-even point. Instead, seek methods to pass these along to customers or provide value in other ways, I advise.
Thanks to: Andrew Priobrazhenskyi of Discount Reactor.
109. What Would Dr. Strange Do?
Every small business owner should act like Dr. Strange in Avengers: Infinity War. Take a step back from the current conflict with inflation and instead, try to predict which trends will continue to contribute to things like wage increases, rising costs of materials, and supply chain disruption. Although you don't have the Time Stone like Dr. Strange, you can still run scenarios to test how your business is positioned to respond to inflation in areas people aren't discussing yet.
Thanks to: Chris Knowles of True Friends Moving Company.
110. Get Yourself a Loan
Borrowing money right now is an excellent idea! With low-interest rates and rapid inflation, you'll likely be able to pay back the loan with money that's less expensive than what you borrowed. Don't forget to put your loan repayments to good use.
Thanks to: Vincent Amodio of Icon Medical Centers.
111. Improve Your Productivity
Get the most out of your employees by investing in training or new technologies to help improve efficiency.
While it seems counterintuitive, investing in a new technology can help small businesses save money in the long run by increasing productivity and efficiency.
For example, many brands spent money to hire more people amid the great resignation. Reviewing and replacing outdated hiring practices with an ATS can help them save money and time while attracting top talent.
While it seems counterintuitive, investing in a new technology can help small businesses save money in the long run by increasing productivity and efficiency.
For example, many brands spent money to hire more people amid the great resignation. Reviewing and replacing outdated hiring practices with an ATS can help them save money and time while attracting top talent.
Thanks to: Linda Schaffer of Checkr.
112. Cut Expenses Where Possible
I believe the best way to deal with inflation is to cut expenses where possible. My business uses a hybrid remote/in-office model that allows the flexibility to switch to a smaller, less expensive office. I check if my business is paying for products or services that aren't being used and cancel those items. Lastly, I look for substitute materials and alternative products or ingredients that will help me cut costs. But in doing so, I have to be cautious so that I don't compromise on quality.
Thanks to: Kevin Mercier of KEVMRC TRAVEL.
113. Price Competitively
As an expert, I feel that pricing power is the quantity of a product required relative to its price volatility. It's proportional to demand's price elasticity or how much it swings for a product. Less competition gives premium brands tremendous price power. In an inflationary climate, offering essential services or products might boost your pricing power.
Thanks to: Jake Dickson, Certified Personal Trainer of BarBend.
114. Boost Company Plan Visibility
I believe monthly plan reviews can benefit your organization. Some employees may feel these workshops are a waste of time because not everyone can attend. Plan visibility ensures everyone is on board and aware of the business's performance. By educating employees and other stakeholders about your company's health, you can inspire them to invest more in its well-being. Make this information available.
Thanks to: Josh Pelletier, Chief Marketing Officer of BarBend.
115. Increase Profits
I believe that creating extra cash can improve your firm. Small businesses struggle with cash flow. Most accountants use a statement of cash flows to track a company's incoming and outgoing cash. Without cash flow, you'll have to rely on credit. Advertise and market your products and services to ensure a consistent revenue flow. Reduce spending to boost your bank account. Check accounts receivable for overdue bills.
Thanks to: Mark Valderrama, CEO & Founder of Aquarium Store Depot.
116. Speculate
Alternate methods and what-if scenarios can help. Alter goals and milestones after creating scenarios. Decision tree analysis in operations management may include what-ifs. Randomness, resource costs, and utility are included. Machine-learning uses decision-tree analysis. Inflation grows, stays the same, or lowers in a decision tree. You may keep something by sketching its effects. Small firms may fight inflation via decision trees and what-if scenarios.
Thanks to: Viktor Holas, Founder of Wisebarber.
117. Take Advantage of Automation
Amid the rising prices and costs of business due to inflation, you can save money by streamlining your small business processes. Leverage automation so you can be more productive and efficient. It will also allow your team to focus on other business functions that will help you earn consistent profits while spending less on resources.
Thanks to: Marina Vaamonde of HouseCashin.
118. The Price is Right
We are dealing with inflation in our businesses. There is now way around it.
My #1 tip to deal with inflation is to jump on the inflation train and inflate your prices. If your costs are going up 10% then raise your prices 10% at least.
While this might seem like it may have a negative effect on your business, what is worse? Profit is the goal and if your costs are rising and you aren't raising your prices, you're doing yourself a disservice.
My #1 tip to deal with inflation is to jump on the inflation train and inflate your prices. If your costs are going up 10% then raise your prices 10% at least.
While this might seem like it may have a negative effect on your business, what is worse? Profit is the goal and if your costs are rising and you aren't raising your prices, you're doing yourself a disservice.
Thanks to: Corey Holtam of Small Biz Buddha.
119. Expand Your Services
During high inflation periods, many small businesses raise the prices of products/services to help cover costs. However, raising prices on non-essential items like backyard pond installs and products doesn't help. People will just stop buying them. Instead, I've found expanding the line of services I offer helps to make up for the decline in sales during these times. Offering summer and winter maintenance and cleaning packages, etc., has helped create a new cash flow opportunity for my business.
Thanks to: Tory Jon of Pond Academy.
120. Invest in Existing Marketing
Invest in marketing to existing customers. Reminding and reinforcing why they buy your product will keep them loyal. The marketing need not be expensive-put time into your blog and newsletter. Keep the content fresh, enticing and regularly updated or sent. It’s tempting to focus on gaining new customers, but they may not be willing to spend more. Marketing to your base will keep them coming back, even when the product is more expensive.
Thanks to: Amy Keller of FAVES.
121. Assess Profit Margins
Keeping an eye on the profit margin of your company is one of the most important things you can do to assist small businesses in coping with inflation, in my opinion. Recalculating your costs and determining what kind of margins you're working within the current economy should be your first step. From there, investigate potential avenues for expanding those margins while maintaining quality control over all aspects of the products and services offered.
Thanks to: Robert Zeglinski.
122. Refine Resources
There are a few ways that businesses can deal with inflation, one is the option to improve resources so that more can be produced with less. This can involve streamlining processes, investing in new technology, or training employees to be more efficient. By taking proactive steps, small businesses can weather the storm of inflation and come out ahead.
Thanks to: Marcus Astin of Pala Leather.
123. BBB-Better Business Bargaining
Review all contracts/buys within 5 years and put into 2 buckets: purchases and ongoing contracts. Purchases - buy as much as you can now, to the point they would go bad if you bought more, or consider converting to contracts. For contracts - lock them in now and then renegotiate later (when prices go up due to inflation) with the vendor, giving you the upper hand in negotiations as your suppliers know they owe you, counterbalancing the fact that you need their goods too.
Thanks to: Joel H of Inflation Training.
124. Minimize Your Labor Expense
Instead of hiring new employees and adding more to your company’s liability cost, invest in your team’s value through promotions and cost-effective raises. Increasing salary summations by accommodating new candidates delays your business to accumulate funds. Plan a high-functioning strategy that maintains team productivity and performance without micro-management. Investing in tenured employees who already know your operations require less expense and will help you during inflation.
Thanks to: Leo Coleman of Gambling 'N Go.
125. Tip for Small Businesses
Government contracting is a way to make your business profitable despite the high inflation. Each year, 23% of the overall federal contracting dollars are obligated to be awarded to the little guys. Especially for minority and women-owned small businesses, they have the leverage to win government contracts as the SBA also ensures that a certain percentage of the overall federal contracting dollar is awarded to business owners under these categories.
Thanks to: Karwanna D. of She's Got Goals, LLC.
126. Tips for Small Businesses
The best way to fight against the global inflation crisis is to automate the tasks in your business. The more you schedule the project tasks and automate different jobs, the more it will need help from the human workforce. As a result, it will reduce the operational cost of your business. Additionally, get help from AI technologies to boost work efficiency by providing practical ways to streamline your projects. Therefore, automating your work can be more manageable, and combat the price hike.
Thanks to: Alex Haley of YardsNearMe.
127. Inflation Tips for Businesses
Aiming for productivity could become the most prominent anchor in today's turbulent times. Small enterprises should aim to work smarter and get more with less labor. Streamline and organize business processes, identify improvement areas, and automate processes wherever possible. Besides giving direction to your efforts, it will help you minimize costs, reduce errors, boost employee motivation, and assist in efficiently allocating resources.
Thanks to: Eliana Levine of FindPeopleEasy.
128. Watch Your Profit Margins
Pay close attention to your profit margins. You may need to take action if your profit margins begin to fall. This includes raising prices to offset the costs of higher inputs and increasing production to meet demand. However, be careful not to overstep your budget. You don't want to lose customers by overcharging, but you also don't want to lose money by pricing too little. So by watching your profit margins, you will know whether or not your company needs to change its pricing strategy.
Thanks to: Caitlyn Parish of Cicinia.
129. Don't Layoff Employees
Most business owners fire their employees due to increasing inflation. However, this is not a wise decision. Customers may be less willing to spend than they were previously, resulting in slower sales. Your goal is to improve sales volume while maintaining the same selling costs. To achieve this, you will need your employees the most. This way, you may reduce the inflationary effects on your buy-side, maintaining a continuous increase in sales while keeping your prices low.
Thanks to: Joshua Rich of Bullseye Locations.
130. Resisting the Impulse
Resist the impulse to wait it out because many business owners are hoping for things to return to "normal," they have postponed implementing large-scale financial changes in their businesses while they await stabilization. However, history shows that times of higher inflation are rarely followed by price deflation.
Thanks to: Derrick Haywood of Cozy Seating.
131. Update Prices Regularly
With inflation, prices for goods and services go up over time. This means that the price of your product today will be different than the price of your product next month or next year. To keep up with inflation, it's important to regularly update your prices. This way, you can ensure that you're still making a profit on your products and services.
Thanks to: Shaun Martin of Denver Home Buyer.
132. Revisiting Pricing Strategy
Revisiting your pricing strategy is an important step in helping your small business weather the effects of inflation. You need to make sure that your prices reflect the true cost of doing business, don't be afraid to adjust your prices upward in response to inflationary pressures, consider offering discounts or promotions to loyal customers, look at your competitors and think about how much leeway you have when it comes to raising prices.
Thanks to: Harriet Chan of CocoFinder.
133. Vet the Supply Chain Inventory
Make an inventory for your supply chain that may pose risks for your small business. Take a look at some of your supplies that only present a 5-10% cost of sold commodities. Keep your main or core supplies on stock, but make sure they have minimal storage cost. Do not rely too much on a single supplier because they may also go under during times of inflation.
Thanks to: Lauri Kinkar of Messente.
134. Vigilance on Cash flow
Be vigilant with your cash flow. It is one of the things that small businesses should be cautious of, so you should view the return of investments and new purchases in a pragmatic way. Periods of inflation may unconsciously trap you in tendencies to practice random purchases, spending, and giving some slack to your customers. But remember that you are all experiencing it.
Thanks to: Sean O'Neal of Onclusive.
135. Adopt Useful Technology
Use technology to get more value out of your operations. Within this inflationary environment, small businesses, including those in real estate, are facing a tough time competing against larger companies who have access to more resources and have lower overhead costs. It can also be hard to keep up with a cost curve that can change on a dime. However, adopting the right technology can help these smaller companies lower costs of operations and remain competitive for the long term.
Thanks to: Michael Green of Quick Cash Homebuyers.
136. Inflation Tips for Businesses
During inflation, small businesses do not have to lower the quality of their goods and services. They should instead inform their customers a few weeks ahead of time of the change in the prices of their goods or services. They should also inform them of the reasons behind the increase in prices. On no account should quality be compromised.
Thanks to: Ellie Walters of FindPeopleFaster.
137. Coordinate With Your Suppliers
As an entrepreneur, one of the things I did to fight inflation was coordinate with my supplier. Talk to your supplier and see if you can ask for a discount or if there are any ways to maintain the price. Businesses are more willing to cooperate during downtimes. If not, try to search for new suppliers that can provide you with a lesser price. Competition is fierce, and most companies will sell at a discount. There are many ways to lessen your costs, and this is the one that worked for me.
Thanks to: David Lee of Inyouths LED Mirrors.
138. Cutting Unneeded Expenses
In the long run, saving money on unneeded expenses can be quite useful to small businesses. It's critical to conduct extensive research and analysis on the products and services that your company may or may not require and use. This way, you won't have to pay for the services that are no longer required, and you'll be able to locate cheaper alternatives that will save you a bunch of money.
Thanks to: Meera Watts of Siddhi Yoga.
139. Strengthen Your Pricing Power
I believe that all businesses affected by inflation will be required to pass on pricing increases to consumers. Even if you are not ultimately affected by inflation, increasing your pricing power increases your market position. Here are some suggestions for enhancing your pricing power: Determine what sets you apart from the competition and focus your product, service, and marketing message on that distinction. Enhance the distinctiveness of your offering via bundling, de-bundling, or branding.
Thanks to: Martin Lassen of GrammarHow.
140. Tips for Small Business
Raise prices sparingly.
While raising prices isn't ideal, it may be beneficial in combating the effects of inflation on your business. Drastic price increases across the board should not turn customers off. Instead, gradually increase prices in small increments and be strategic. Select locations where customers are less likely to notice.
While raising prices isn't ideal, it may be beneficial in combating the effects of inflation on your business. Drastic price increases across the board should not turn customers off. Instead, gradually increase prices in small increments and be strategic. Select locations where customers are less likely to notice.
Thanks to: Salvador Ordorica of The spanish group.
141. Minimize Unnecessary Costs
In my opinion, inflation raises costs, therefore eliminating unnecessary expenses saves money. Changing financial projections can reveal budget reduction. If you can't boost pricing, lower costs. Keeping costs low can prevent inflation-related customer anger. Determine your products' value to save money. Reduced packaging saves money without affecting customer service, marketing, or R&D. Less shipping tape saves money.
Thanks to: Tanner Arnold of Revelation Machinery.
142. Evaluate Risk in Supply Chain
I believe that supply chain is a profession that manufacturers cannot afford to neglect due to its complexity. There are entire books devoted to managing supply chain risk, but there are a few important vulnerabilities to keep an eye out for during inflation. Single-supplier dependencies, one item constituting over 10 percent of your cost of sales, slow-moving suppliers (e.g., overseas suppliers), and materials that are difficult or costly to store due to their size, weight or perishability.
Thanks to: Veronica Miller of VPNoverview.
143. Run What-if Scenarios
Running different what-if scenarios will let you see how your bottom line would be impacted by an increase in the cost of goods and services. By doing so, you can develop a plan to either increase prices or cut costs in order to maintain profitability. Additionally, you should stay aware of changes in the broader economy that could lead to inflationary pressures. For example, if the cost of raw materials starts to rise, this could eventually lead to higher prices for finished goods.
Thanks to: Gauri Manglik of Instrumentl.
144. Invest Money to Save Business
During inflation, small businesses have two options present to them, to stay lean and mean or to look out for growth. During inflation, it's hard to look out for anything in between. If you are opting for option 1, that means you have to opt to cut your expenses so that you can invest in other departments that can multiply your money. The 2nd option is to market your product to existing customers because adding new customers to your box is a tough task during inflation.
Thanks to: Aniket Kumar of Kellton Tech.
145. Think Ahead
The key piece of advice retrospectively would have been for businesses to recognize the potential problems in the market that Covid response was creating for the future. Fortunately, as a small business, we did just that and responded early. We renegotiated contracts with suppliers to buy large quantities of equipment back in 2021.
This is paying off for us now and should also do so in the future as inflation and prices keep rising.
Be nimble and adept from the get-go.
This is paying off for us now and should also do so in the future as inflation and prices keep rising.
Be nimble and adept from the get-go.
Thanks to: Evan McCarthy of Sporting Smiles.
146. Trash the Poor Performers
Poor performing products should be taken out of the manufacturing and rotation cycle for your business. This is my tried and trusted method of battling inflation for small businesses. If you do that, it can assist your company in staying above board and prevent you from spending time and effort on inventory that doesn't provide any advantage to your company.
Thanks to: David Farkas of The Upper Ranks.
147. Tip You Can't Afford to Ignore
Business automation will save you a great deal of money. You won't have to pay people to do the tasks automation can do. Also, automation doesn't ask for sick time or health benefits. You can use automation software for your payroll and even human resources, reducing the need for those departments. Automation also streamlines your workflow for better productivity.
Thanks to: Janice Wald of Mostly Blogging.
148. Automate Internal Processes
As discretionary income decreases alongside consumer spending, and the cost of labor increases year over year, inflation has perhaps the most impact on small businesses with finite resources. To ease the blow, turn to automation. A cost-effective solution, automation frees up your team from laborious, repetitive tasks, and deploys them where they're most needed within your organization. This reduces your need for manual labor, which can be one of the most costly aspects of providing a service.
Thanks to: Max Wesman of GoodHire.
149. Cut Unnecessary Expenditures
During inflationary market conditions, economic turbulence can bring business growth to a standstill. It erodes your customers' income and reduces their purchasing power, meaning that they're far more likely to churn. To prepare for this, cut down on unnecessary expenses. This means downsizing your office, substituting expensive materials, and cancelling under-utilized software and service subscriptions. You'd be surprised at just how many outgoings you neglect while business is booming.
Thanks to: Aaron Gray of NO-BS Marketplace.
150. Increase Morale with Bonuses
Consider using your business tax refund to give your employees a bonus. If you can manage, this can be an excellent way to combat rising prices and high inflation. Keep your employees happy by sharing the wealth during these inflationary times.
Thanks to: Datha Santomieri of Steadily.
151. Deal with Inflation
In any disruptive climate, there is a greater likelihood that leaders would make decisions that threaten the company's long-term strategy, in my opinion. It is not uncommon for companies to make widespread cuts that are not in line with their business plan and, as a result, will not generate optimal return on investment nor optimize long-term shareholder value. Instead, clearly differentiate between strategic and nonstrategic cost-cutting, the protection of signature customers & staff experience.
Thanks to: Alex Savy of Comfy North.
152. Negotiate Your LT Contracts
I think the issue right now is that a lot of small business owners in the west just haven't lived through an inflationary period.
One way to manage inflation is to sign long-term contracts with suppliers and vendors at fixed prices. This can help insulate your business from sudden price increases.
One way to manage inflation is to sign long-term contracts with suppliers and vendors at fixed prices. This can help insulate your business from sudden price increases.
Thanks to: Sam Shepler of Testimonial Hero.
153. Helping With Inflation
According to my estimation, with enhanced visibility and a clear grasp of how costs match with strategy, the next stage is to acquire a deeper understanding of the real cost drivers in an inflationary environment. Examine the rate (paid prices) and consumption (quantity or volume), as well as the underlying factors, for key cost categories. This stage enables businesses to build detailed, trackable initiatives tied to a specific cost category driver. It creates a multitude of possible moves.
Thanks to: David Janssen of VPNoverview.
154. Saving for Small Businesses
Hire smart, fresh graduates when you can.
Most businesses prioritize experience when hiring employees and I've learned over the course of my years in the industry that this isn't always the smart or economical choice. When I began my company, I hired fresh graduates in fields like marketing and programming because they're up to date with the latest trends and technology and you can hire them for an entry level salary. This saves costs by nearly 40% when you're a small business.
Most businesses prioritize experience when hiring employees and I've learned over the course of my years in the industry that this isn't always the smart or economical choice. When I began my company, I hired fresh graduates in fields like marketing and programming because they're up to date with the latest trends and technology and you can hire them for an entry level salary. This saves costs by nearly 40% when you're a small business.
Thanks to: Eyal Pasternak of Liberty House Buying Group.
155. Finance Your Bills
Inflation will cause cash flow challenges, which can hurt your company. If you rely on consumer billing, you may experience longer-than-usual payment delays. Audit your revenue management processes to uncover simplification opportunities. This year is critical for accurate billing and using technology in collections. Finally, finance your customers' bills. Turn unpaid bills into cash as your competitors struggle.
Thanks to: Max Whiteside of Breaking muscle.
156. Price-hike Carefully
About 80% of U.S. businesses have raised prices or plan to do so. No one enjoys telling customers this, but there are ways to improve their experience. Communicate well. Your clientele can probably relate to your team, so they'll understand if you explain the price hike. Use a formal announcement in-store, online, and on Facebook. It may say, "We've maintained low prices for three years despite rising costs." Reframe it as proof you appreciate their company.
Thanks to: Sumit Bansal of TrumpExcel.
157. Put a Face Behind Your Brand
Make a personal connection with your customers. We added live selling on Facebook at the start of the pandemic. Initially our goal was just to increase our sales. The unexpected benefit was the trust and customer loyalty we have been able to build in our brand. Ecommerce can be very impersonal, and live selling has helped us put a face behind our brand. In tough times, people want to make every dollar count. We have let our customers know we are a trusted place to spend their hard earned money.
Thanks to: Jen Greenlees of Sydney So Sweet.
158. Expand & Preserve Your Network
Supply chain problems are fueling the inflationary flames. You may protect your organization from the most severe effects of inflation by securing the inventory it needs to function. In order to establish which products are most in demand, you'll need to interact more closely with your suppliers. Foresee and plan for supply problems in the future with this information at hand. Negotiate a long-term deal with your suppliers if possible to ensure stable inventory and prices.
Thanks to: Travis Lindmoen of Nexus IT Group.
159. Improve Competitiveness
As inflationary pressure builds, small businesses need to be increasingly competitive to maintain their customer base and profitability. This may entail offering discounts or promotions to keep prices down, or being creative in how they price their goods and services. Staying ahead of the competition is essential in an inflationary environment, as consumers will have more choices and be more price-sensitive. This may mean offering payment plans or financing options to help people afford it.
Thanks to: James Jason of Notta AI.
160. Lose the Office, Save the Team
Many companies lay off valuable employees to cut costs in this situation but that is terrible for your company's reputation and long-term employee satisfaction. Another great alternative is to switch your team to a remote work situation and save up on office costs.
Remote working can help firms save money in a variety of ways. If the majority of your team works from home, you won't need to pay for larger offices, commute and even childcare.
Remote working can help firms save money in a variety of ways. If the majority of your team works from home, you won't need to pay for larger offices, commute and even childcare.
Thanks to: Jason Porter.
161. Raise Prices Gradually
Raising prices gradually is one way that small businesses can deal with inflation. By doing this, they can avoid giving their customers too much of a shock. Instead, customers will be more likely to accept small, gradual price increases. This can help small businesses keep their prices in line with their costs, and avoid having to make drastic price changes that could alienate their customer base.
Thanks to: Daniel Chen of Airgram.
162. Up Prices, Cut Costs, or ...?
Increase prices or cut costs... These may be the first reactions to rising inflation but there's a third way: Review your marketing. What is your target audience looking for? How can you increase the value of your offer without increasing costs (or with only a limited increase in costs)? How can you communicate the value of your offer better? Remember, customers aren't buying a product, they're looking to improve their lives. How can you do this better?
Thanks to: Henneke Duistermaat of Enchanting Marketing.
163. Increase Your Prices Wisely
You should explain the price hike to clients. Put a sign in your store, on your website, or on social media. It may seem like tactic, but your message is that you're trying to ease your customer's stress. To keep their loyalty, show them you care.
Thanks to: Chris Smith of Compare TV.
164. Master the Art of Upselling
Your upselling skills determine how well revenue levels are maintained during inflation. You’ll need to revisit your pricing strategies for those additional services and portray them as a potential win for your customer at a discounted price.
Unnecessary layoffs are not an option, and hiking your main prices will see your clients shifting toward competitors. Therefore, rigorous upselling will see a decent increment in your revenues without implementing any significant business change.
Unnecessary layoffs are not an option, and hiking your main prices will see your clients shifting toward competitors. Therefore, rigorous upselling will see a decent increment in your revenues without implementing any significant business change.
Thanks to: Johannes Larsson of Financer.
165. Finance Your Invoices
If you rely on customer invoices, you may wait longer to get paid. Take stock of your income management processes to streamline them. This year, correctly invoice and use technology in your collections procedure. Turn consumer invoices into an asset by financing them. While competitors are caught in late invoices, turn yours into cash. Better, you can utilize the money to grow your firm while the competition stagnates. Best of all, you can take an opportunity without taking on debt.
Thanks to: Brian Case of Selkirk.
166. Offer More Ways to Pay
Accepting cryptocurrency can help your business become more sustainable. Rising inflation forces the need to expand payment options. While responding to their pain points enables you to deliver the real solutions they're looking for in uncertain financial times, it's also a way to increase sales as you can open your doors to international buyers. And because you're not dealing with credit card processing companies that charge you 2 to 4% of each transaction, you're saving your business money.
Thanks to: Chris Gadek of AdQuick.
167. Prioritize Financial Wellness
Making financial planning resources available to employees can help keep the team together. Many workers are scrambling to find higher-paying jobs. And with rising inflation, financial planning, as well as wellness resources, must be available to people of all income levels rather than only to the wealthy. Doing so will increase their confidence in their ability to maintain the life they've created for themselves and their families.
Thanks to: Shaunak Amin of SnackMagic.
168. Cut Costs, but Don't Slash
When the cost of goods and services goes up, small businesses may be tempted to reduce their expenses by cutting costs. However, this can often do more harm than good. While it is important to keep costs under control, drastic cuts can lead to a loss of quality and reduced customer satisfaction. In addition, many small businesses rely on credit to finance their operations, and cutting costs can lead to a loss of creditworthiness.
Thanks to: Jeremy Luebke of We Love Land.
169. Get Your Business Essentials!
Identify your essential resources for doing business and keep a little more wiggle room in those resources while the economy figures things out. Many business owners will be tempted to get as much cash into assets as they can, but not having that cash could quickly cripple your business. Instead, you can convert some of that cash into non-negotiable resources for business. That might be taking an annual subscription out for company software or setting aside extra essential supplies.
Thanks to: Tom Monson of Monson Lawn & Landscaping.
170. How To Deal with Inflation
If you're a small business struggling with inflation, there's one thing that is imperative; save up all of your money in PayPal, Venmo, etc. The reason you should save up all your money is because you never know how much you'll need to pay for anything. Therefore, if you have debts outside your business, when you save up money in PayPal, Venmo, or a similar website, you'll be able to get money from those websites. Then, you can use that money to pay your debts. And you'll be in the clear.
Thanks to: Harrison Tanner Baron of Growth Generators.
171. Lower Insurance Premiums
Make sure your insurance exposures (rating factors) are up to date. Many business policies are based on your annual revenue. If inflation has negatively impacted your business’s revenue, tell your agent, and you should be able to save some money.
Thanks to: Matthew Turman of Susquehanna Insurance.
172. You Move too Much
Reducing movement waste is my number one suggestion during inflation. But first, business owners should evaluate the experience to look for opportunities where they move too much. Then stop, reduce, or eliminate that movement.
For example, take an interview process. You might receive resumes, review them, and have the employee do an application, screening interview, and x number of additional interviews.
If you can eliminate any part, you save the company time by speeding up the process.
For example, take an interview process. You might receive resumes, review them, and have the employee do an application, screening interview, and x number of additional interviews.
If you can eliminate any part, you save the company time by speeding up the process.
Thanks to: Doogie Levine of IAS Business Coaching & Consulting.
173. Give Less Discount!
When introducing a new service/product, have 2 prices in mind: One you want to ask eventually and one you feel comfortable asking right now. The difference between the 2 is the discount you give.
By giving less discount you are actually raising your current prices.
When you've reached the max price, remember this: When increasing your prices with 25%, you can lose 20% of your clients without losing any income.
By giving less discount you are actually raising your current prices.
When you've reached the max price, remember this: When increasing your prices with 25%, you can lose 20% of your clients without losing any income.
Thanks to: Erwin Wils of Millionaire Life Strategy.
174. Invest to Generate New Revenue
Money is worth less every day, so what you keep or save in your business account is worth less every day. That is why you should use existing funds to generate new revenue by investing in digital marketing, establishing new promotional or sales channels, adjusting pricing policies, or eventual promotional or quantity discounts. The main goal of the activities you undertake must be to attract new customers or clients, or to generate new, larger revenues.
Thanks to: Andrew Taylor of Net Lawman.
175. Market to Loyal Customers
Although costly, acquiring new clients is essential since they guarantee stable income streams and profit margins. One of the finest methods to reward repeat customers is by developing a loyalty program. Offering discounts to loyal consumers, incentive programs for repeated buyers, or any other advantage in exchange for a joining fee can accomplish this. As a result, firms will spend less money on ongoing customer acquisition expenditures. It will significantly enhance customer retention rates.
Thanks to: Charlie Garcia of WP Dev Shed.
176. Inflation Tip for Small Biz
One of the first things we implement during times of extreme inflation is cutting back marketing expenses for new customers. Our customer lifetime value metric is one of the key numbers we focus on improving, so this is an easy transition for us. Cutting back on marketing expenses to new customers is not as bad as it might seem. We simply use less expensive methods (like Instagram) to continue to promote our brand to new audiences, while focusing our efforts on our existing customers.
Thanks to: Michael Taylor of Shifting Shares.
177. Examine Your Pricing
I advise each owner of a small firm. Examining your pricing may not be a popular decision, but it could very well shield your small business from growing inflation. Given that your clients are likely also feeling the effects of increased costs, a significant increase might be counterproductive, but a little increase may be required, especially if your organization is on the verge of losing money or if company profit margins are now on the slim side.
Thanks to: Jonathan Merry of Bankless Times.
178. Review Your Operations
I think numerous business owners have been prompted by high inflation to review their operations and consider methods to be more productive, efficient, and cost-effective. It might make sense to invest in company technology. Examine workflows and seek to streamline procedures. Look at project management, inventory control, and customer relationship management software.
Thanks to: Zaeem Chaudhary of AC Design Solutions.
179. Reduce Certain Recurring Costs
I contend that in light of the rising cost of living, business owners aren't being prudent unless they conduct an exhaustive analysis of every expense. Take into account the worth each expense delivers to your company. Don't reduce expenses that are necessary for consumer or employee pleasure. Reduce your office building if necessary, cancel subscriptions you hardly use and eliminate items with low return on investment.
Thanks to: Matthew Dailly of Tiger Financial.
180. Smartly Manage Your Cash Flow
Keeping a lot of cash on hand can be risky with inflation. The buying power of your liquid assets could decline as inflation increases. To keep up with the rising market prices, think about investing that money. To find out which assets are best for your particular situation, it's a great idea to speak with a financial counselor. The bottom line is to maintain the buying power of your money and keep the absolute smallest amount of cash in your account.
Thanks to: Emily Che of Poly Furniture Supply.
181. Make Retail Level Adjustments
Small businesses should be dealing with the effects of inflation at the retail level. This means making adjustments to pricing structures, inventory management, and accounting standards.
Thanks to: Ibrahim Mawri of Roowaad.
182. Increase Prices Slightly
The best way for small businesses to deal with inflation is to slightly increase their prices to reflect this. While there are other things you can do to keep costs down, such as bulk buying, ultimately you need the cost of your products to reflect the cost of creation and manufacturing. The extra costs shouldn’t cause you as a small business to be affected. You shouldn’t take the hit as this will have an impact on your business revenue and could lead to financial issues.
Thanks to: Shakib Nassiri of WAMA Underwear.
183. Inspire Productivity
One of the best and also permanent ways to beat inflation is to increase revenue and profits by inspiring productivity. And I do not use the word inspiring lightly. Firstly, considering the lack of resources to make operational improvements in your business, it is crucial that this boost in productivity is a result of employee effort. Secondly, with the recent challenges and shifts in the employee market, you must be able to pull this off by inspiring employees to do more, not demanding it.
Thanks to: Azmaira Maker of Aspiring Families.
184. Revisit Your Expense Sheet
A direct solution to tackling inflation is to cut costs. Revisit your expense sheet to look for ways to cut down spending. One approach is to liberally chop away at anything that seems like an excess and then revisit the decision if you feel it is adversely impacting operations. Another is to judiciously and painstakingly review each expense on your sheet and only remove the ones you deem absolutely dispensable. Either way, you will be able to buy yourself some financial leeway.
Thanks to: Konstantin Kuligin of K5 Mortgage.
185. Work Your Way into New Markets
Your business can take on the challenge of inflation by putting to work new strategies and working your way into new markets. Take a good look at the markets where your competition is thriving but you haven’t made inroads yet. Work on creating new markets by stirring the interest of target audiences. You can even revisit your current market blueprint to try and push for more orders. This expansion strategy will also help your business achieve long-term growth.
Thanks to: Kris Harris of Nootka Saunas.
186. Find Ways to Get More Cash
Cash flow is a vital aspect of operating a small business. That is why accountants examine a statement of cash flows to understand the way money gets in and out of the business. If there is no cash flow into the business, payment will be a problem, and you may have to rely on credit to settle them. Find ways to make more sales. You can boost your advertising strategies, but remember also to cut expenses so that more money flows into the business.
Thanks to: Kelvin Stewart of USBadCreditLoans.
187. Communicate with Customers
You don’t want to lose valuable customers due to pricing increases that are largely outside of your control. Most customers are aware of the effects of rising inflation, but sometimes a conversation is needed to help them understand how it’s impacting your business. Depending on your business, an email or even a small note on your pricing board can help explain the reason for the change, so that customers understand the larger forces at play.
Thanks to: John Jacob of Hoist.
188. Touch Base with Key Employees
It’s important to know whether employees vital to your business are beginning to shop around for a higher salary due to concerns about rising inflation. An employee may not say anything to you when he or she begins submitting applications, so it’s important to touch base to understand where your key employees stand. Losing a valuable employee can be far more damaging than providing a raise that comforts fears of inflation, so be proactive.
Thanks to: Alex Wang of Ember Fund.
189. More Purchase Options
In this inflationary environment, we're offering customers different sized options in our packaging. Customers can still save more overall with bulk purchases, but we have smaller packs available at a lower price to help families on a strict weekly budget.
Thanks to: Elizabeth Davis of Hudstone.
190. Invest in SEO Over Google Ads
Most small businesses rely on Google Ads to generate leads. However, the conversion from Ads reduces during inflation because their potential leads have a lower inclination to spend. This means the cost per click goes off the roof.
The best way to reduce paid Ad expenses is by investing in SEO. A good SEO strategy will help you rank on the first page of Google search pages without investing in CPC Ads.
The best way to reduce paid Ad expenses is by investing in SEO. A good SEO strategy will help you rank on the first page of Google search pages without investing in CPC Ads.
Thanks to: Sai Kalki of DigiGrow.
191. Get Banking
One of the best moves a small business owner can make to combat inflation is to set up business banking. There are a huge amount of SMBs that haven't got a dedicated bank account, which means they're missing out on a whole range of financing options that can increase cash flow, streamline budgets and improve financial security. It's natural to blur the lines between personal and business bank accounts, but dealing with huge inflation is a sign that it's time to make the switch.
Thanks to: Brian DeChesare of Breaking Into Wall Street.
192. Inflation is About Perspective
If I were to offer my best tip on dealing with inflation, it would be to be honest with yourself and your business. That means different things for different situations: maybe you had a great year last year and you can absorb a little more inflation to keep from raising price, thus keeping an edge in the market... maybe it means the opposite and you have to raise prices to keep up with inflation. Maybe it means downsizing the office you've always had or cutting back on luxuries.
Thanks to: Laura Fuentes of Infinity Dish.
193. Should You Renegotiate?
A talent agency has to get creative to deal with inflation. Our performers have all requested increased compensation, and modified their tip scale after we designed guidelines to make the requests, and alter the tipping. With the current inflation rate, renegotiation is unavoidable for every business and employee. The good news is that this will end, and hopefully, everyone will have a fair compensation from their customers and employers by then.
Thanks to: Sammy Shayne of Couch Fame.
194. Raise Prices or Shrinkflation
Raise prices strategically or adopt shrinkflation.
With the constant rise in inflation, raising prices is the next logical step. Despite this, business owners should avoid making across-the-board price increases. Instead, they should target increases on items where their profit margins are most affected. Alternatively, they can consider shrinkflation. This is a practice where businesses deliver lesser products or services for the same price.
With the constant rise in inflation, raising prices is the next logical step. Despite this, business owners should avoid making across-the-board price increases. Instead, they should target increases on items where their profit margins are most affected. Alternatively, they can consider shrinkflation. This is a practice where businesses deliver lesser products or services for the same price.
Thanks to: Karissa Clark of LoansJury.
195. Prevent Radical Changes
To avoid overwhelming customers or clients, offer pricing changes wisely and gradually. With a sales event, you might want to ease your customers into it. Inform customers that prices will increase on a specified date as a result of inflation. Encourage them to purchase immediately to take advantage of the current discounts. This is yet another technique to encourage open contact with clients, and it might even boost short-term revenue for your company.
Thanks to: Claire Onidi of Jugo Feed.
196. Alternate Supply Chain
Owners must take the initiative since supply chains are unpredictable and still have problems. Investigate substitute vendors, ideally in several places. If a particular supplier is unable to meet your needs, you must have the certainty that your supply will be maintained. Purchase more than you can in a single shipment to avoid having to place as many orders and being subjected to ongoing price hikes. And be open and honest with your clients. Keep your consumers informed and stay updated.
Thanks to: Tiffany Payne of Orangeries UK.
197. Lock in Fixed Rates on Debt
If you have good credit and an adjustable-rate mortgage, it may be beneficial to refinance your business loans into a fixed-rate loan. Additionally, you could acquire a fixed rate and level payments by consolidating credit card debt with a personal loan.
Thanks to: Ray Leon of Pet Insurance Review.
198. Minimize Unnecessary Costs
Small businesses should also take a close look at their expenses to see where they can cut costs. This is especially important if you’re operating on slim margins to begin with. Inflation can quickly eat away at any profits you’re able to generate, so it’s crucial to find ways to trim the expenses whenever possible. This could involve negotiating better deals with vendors, looking for cheaper suppliers, or streamlining your operations to reduce waste.
Thanks to: Todd Saunders of https://bigsafety.com.au/.
199. Get Creative with Marketing
As a small business, you always have to be thinking about marketing and how to reach your target audience in the most effective way. In times of inflation, this becomes even more important as you’re looking for ways to cut costs without sacrificing quality or reach. One way to get creative with your marketing is by finding free or low-cost marketing channels that can help you reach your target market.
Thanks to: Danielle Bedford of Coople.
200. Set Enough Money Aside Early
One of the best tips I can offer small businesses is to make sure that they have a good grasp on what inflation is and how it works. Inflation causes prices to rise, and this can hurt businesses that don't have enough money set aside for increases in expenses. The best way to deal with inflation is to make sure you have a strategy in place before it happens. You need to know how much you're going to need and what your options are if you run out of cash.
Thanks to: Anup Kayastha of Height Comparison.
201. Track Your Spending
Determine where your money is spent and who spent it. To weather inflation, it is imperative to have an expense management strategy. This allows managers to track the spending for business processes per business unit. By having spending visibility, the manager will know how every decision impacts the profit and loss statement of the business.
Thanks to: Bill Bradley of Mediterranean Living.
202. Scale Your Marketing Efforts
Scale your marketing efforts and try new marketing channels and strategies. When faced with inflation, most small businesses tend to scale down their marketing budget. However, doing this will be detrimental to your company’s ability to earn adequate revenue to stay afloat throughout the inflationary period. Increase your marketing efforts, and try new ways of engaging your audience so that they continue to buy from you in spite of the tough economic conditions.
Thanks to: Dan Barrett of Social Vantage.
203. Review Your Pricing
If your costs are rising but your sales have remained stagnant, it might be time to review your pricing. This can be a delicate balancing act – you don’t want to price yourself out of the market, but you also don’t want to leave money on the table. A good way to approach this is by surveying your customers and seeing what they’re willing to pay for your product or service. You can also look at your competitors to see how they’re pricing their products and services.
Thanks to: Peter Monkhouse of ICL SA.
204. Out-earn Inflation
You have to out-earn the inflation; I do this with search engine optimization (SEO). Every business should either learn SEO, or hire someone that can do this for you.
At the top of Google searches there is still a lot of money to be made (June has broken my all time high in revenue).
Every business can get more paying customers if they can understand what their customers are searching for, write articles that address those needs, and make those articles appear at the top of Google.
At the top of Google searches there is still a lot of money to be made (June has broken my all time high in revenue).
Every business can get more paying customers if they can understand what their customers are searching for, write articles that address those needs, and make those articles appear at the top of Google.
Thanks to: Bruce Paulson of Determined Solutions.
205. Invest To Offset Inflation
One of the most effective tips I can provide to combat inflation is investing your money in a growth fund, government bond, or T-Bills. These instruments are among the highest-yielding assets and should be able to offset inflation no matter how high. The only drawback is that you need to invest in them as early as possible since they will need time to mature and start earning profits. By investing several months in advance, you can expect your investments to catch up with inflation.
Thanks to: Matt Shirley of Splinter Economics.
206. When Possible, Automate
Personal observation leads me to conclude that process automation is fantastic, not just for large corporations. From simple bookkeeping to customer service and promotion, many apps are available to help automate your business's administrative processes. There's a good chance you're already using some of them to some extent. It's a good idea to automate as much of your routine as possible. Error rates are lowered, efficiency is increased, and service improves.
Thanks to: Edward Mellett of WikiJob.
207. Carefully Increase Your Prices
When companies have already raised prices or announced plans to do so, in my opinion, competition is intensifying. Nobody enjoys having to tell customers disappointing news, but there are ways to put the customers' needs first. To that end, I have a proposal to make. Start with effective communication. Customers of small businesses, in particular, are more likely to feel a personal connection to the company's staff, and thus to understand the reasoning behind it.
Thanks to: Adam Fard of Adam Fard' UX Agency.
208. Cut Back on Consumption
The best I can tell, when businesses have better insight into their spending and can identify specific spending drivers, they are better able to adapt to changing economic conditions. Companies can ensure better spending, for instance, even if they are unable to buy better due to supply chain and producer pricing pressures. Setting up a spending czar or spending control towers is one option.
Thanks to: Nely Mihaylova of UNAGI Scooters.
209. Evaluate Supply Chain Risks
Inflation can erode the value of your goods and services over time, so it's important to make sure you're doing everything you can to protect your bottom line. One way to help insulate your business from the effects of inflation is to evaluate your supply chain risk. Are you sourcing materials and components from suppliers who may be affected by inflation? If so, it may be time to start looking for alternate suppliers who are less vulnerable to price fluctuations.
Thanks to: David Gu of Neutypechic.
210. Leverage Marketing & Promotion
Get creative with your advertising. Keep your marketing and promotion activities fresh so that you can stand out from the competition. While you're at reducing costs and checking financial aspects, don't forget about advertising. This can make or break a business during times of inflation. To obtain the best return on your money, make sure the advertising you run is appealing and effective. After all, advertising should not cost you anything and should instead result in sales.
Thanks to: Luke Lee of PalaLeather.
211. Cut Expenses Where Possible
You should focus on keeping your expenses low and look for savings opportunities. That means you must cut back on all non-essentials and identify ways to reduce production costs. For example, you may consider using different materials, switching suppliers, or buying in bulk. Check if you are paying for products or services that aren’t being used and cancel them. Cutting unnecessary expenses and inefficiencies can help you maintain your bottom line.
Thanks to: Charles Cridland of YourParkingSpace.
212. Invest in Technology
Investing in technology and automation can help you improve your productivity, streamline your operations, and better control your overhead costs. You should consider automating time-intensive work and repetitive tasks. For example, you may use software to automate such business processes as scheduling, taking orders, billing, and collecting payments. Investing in tech and automation is useful not just when inflation is high but generally during times of crisis.
Thanks to: Jason Baker of Emerald House Cleaning.
213. The Power of Bulk Purchasing
Take advantage of bulk purchasing. You can receive a better price per unit if you can purchase goods or raw materials in large quantities. This also means that you pay less in taxes and shipping costs, which can in turn help offset the effects of inflation. Bulk purchasing benefits the environment in addition to saving you money. When you place a large order, you may typically go to stores once rather than driving to many different retailers. This is a win-win!
Thanks to: Marty Ford of BulletpRoof Roof Systems Ltd.
214. Revisit Your Pricing Strategy
It’s critical to ensure you’re pricing your services or products reasonably. While raising prices isn’t an ideal solution, it may help combat the effect of inflation on your business. You should raise prices slowly to maintain sustainable profit margins and allow your company to continue to grow and scale. But you should also be aware of what your competitors are doing. Raise prices when needed, but a tad below theirs.
Thanks to: Tim Stumbles of Office Timeline.
215. Carefully Track Your Costs
Make sure that you are only paying for what you need. There is no need to overspend on unnecessary items just because prices are rising. You need to be flexible with your pricing. If you find that your costs are rising faster than your prices, consider raising your rates in order to stay ahead of the curve. Also, you need to keep an eye on your competition. If they are able to offer lower prices than you, it may be time to reevaluate your own pricing strategy.
Thanks to: Baidhurya Mani of Sell Courses Online.
216. Keep an Eye on the Future
Inflation can be a real problem for small businesses. Not only do costs go up, but profit margins can shrink if prices don't increase at the same rate. Beating it will be all about planning ahead. Keep an eye on inflation trends and try to anticipate how they might impact your business. For example, if you know that the cost of raw materials is going to increase, you might want to raise prices in advance or look for ways to reduce your own costs.
Thanks to: Mark McShane of Birmingham First Aid Courses.
217. Review Your Pricing Strategy
Make sure you are charging enough to cover your costs and then some so that you can still make a profit even as prices rise. If you start to see your margins shrinking, consider raising prices or finding ways to cut costs so that you can stay in the black.
Thanks to: Brian Meiggs of Gigs Done Right.
218. Emergency Fund as Plan B
Businesses should build emergency nest eggs to combat the effects of inflation and other unforeseen circumstances. When rising costs and slower traffic start to wear down your business, it is essential to keep an emergency fund to create a buffer between yourself and potential costs to your business. Even if you start small, budgeting for the unexpected can be a gradual strategy to keep your business and wallet safe.
Thanks to: Kevin Miller of Gr0.
219. Keep a Close Eye on Expenses
Inflation can eat into profits quickly, so it's important to be proactive about controlling costs. One way to do this is to negotiate with suppliers for better terms, such as longer payment plans or bulk discounts. You should also think about ways to increase efficiency and reduce waste. For example, investing in new technology or streamlining production processes. By closely monitoring expenses and taking steps to control costs, you can weather the storm of high inflation and continue to grow.
Thanks to: Dmitriy Bobriakov of Virto Commerce.
220. Invest Proactively in Teams
Focus on your teams and retaining them to combat inflationary costs due to churn, onboarding, and hiring. Finding a method that protects your bottom line while investing in your employees is a rock-solid solution to bunker down your business. Prioritize your teams by offering employees time off if they need to prioritize their wellness, and rolling out employee development initiatives to promote growth internally.
Thanks to: Jason Panzer of Hexclad.
221. Always Be Adaptable and Nimble
Inflation can be unpredictable, so it's important to have a plan in place to quickly adjust your prices if needed. Always be on the lookout for ways to cut costs without compromising quality. You might consider negotiating with suppliers or looking for alternative vendors who can offer better terms. Finally, don't be afraid to pass on some of the costs to your customers. If your product or service is still competitively priced relative to others in the market, then customers will be paying more.
Thanks to: Ismail Kuden of Kuden Rugs.
222. Audit Your Product Prices
The classic reaction to inflation that works is raising your store prices. The best way to avoid the consequences of this strategy is to audit all of your products for how profitable they are, in the case you are selling some goods below a fair selling price to begin with. You don’t have to raise every single product’s price to fight inflation, you just have to make sure your price points are optimized to best support your business when your costs do go up.
Thanks to: Shawn Munoz of Pure Relief.
223. Unpack the Drivers of Spending
Small businesses are often the first to feel the pinch of inflation, as they tend to have less room to adjust their prices than larger businesses. The most important step is to understand the drivers of spending. Inflation occurs when there is too much money chasing too few goods and services. So businesses need to take a close look at their costs and see if they can find ways to reduce them. This may include renegotiating contracts, finding new suppliers, or streamlining processes.
Thanks to: Krishna Rungta of Guru99.
224. Get Spending Visibility
This is key for small businesses trying to keep track of where their money is going in order to stay within budget. Utilizing budgeting and expense tracking software can help make it easy to see your business' expenses at a glance and spot patterns in your spending. This way, you can be proactive about reigning in costs during times of high inflation.
Thanks to: Milan Singh of Milan Singh.
225. How to Beat Inflation
Pricing strategies should be revisited during inflationary periods; it's vital to price your services fairly. People will only pay what the market bears. If you can, keep your margins intact, but sometimes it isn't possible to raise prices.
Ensure your job market risk is lower. It is essential to develop an HR strategy for your business if it relies heavily on labor jobs. You can offer raises as well as non-monetary support, such as career development.
Ensure your job market risk is lower. It is essential to develop an HR strategy for your business if it relies heavily on labor jobs. You can offer raises as well as non-monetary support, such as career development.
Thanks to: Erin LaCkore of LaCkore Couture.
226. Helping Small Businesses
Develop a strategy for dealing with inflation ahead of time and increase your marketing efforts, which will help build awareness about your product or service. Also make sure that you have a plan in place if you're unable to keep up with inflation - it could be time for a rebranding or an expansion plan.
Thanks to: Thomas Niemczewski of Dream Chasers.
227. Invest in Your CX
Find ways to build customer loyalty and communicate opportunities to go above and beyond, offer value bundles, start a loyalty program for your repeat customers or create incentives for sharing your business with others. Inflation may last for a while, but it won’t last forever. Think of this period as a time to address their pain points and build customer loyalty, so they’ll keep coming back for more. Focus on main selling points/value/experience that's better for your customers.
Thanks to: Paige Arnof-Fenn of Mavens & Moguls.
228. Get a Fixed-interest Rate Loan
You can take out a fixed-rate loan to finance business expenses because you end up paying the same amount each period throughout the entirety of the loan, which means that if you borrow responsibly, you can end up paying off your debt later with cheaper dollars since its interest rate doesn't ebb and flow with the rate of inflation. Plus, since business revenues also tend to rise during high inflation, this means that the payments will take up a smaller portion of your working capital.
Thanks to: Mila Garcia of iPaydayLoans.
229. How to Deal with Inflation
One way to deal with inflation is to improve productivity through automation. Automate repetitive tasks, such as emails and inventory. Automation saves time and minimizes errors, thus improving team productivity. By providing quick, exceptional service through automation, you also enhance the overall customer experience. Inflation affects customers' purchasing habits. When you invest in automation, you don’t just invest in your workflow— you also invest in your relationship with customers.
Thanks to: Adam Olson of Home Service Direct.
230. Monitor Your Expenses
When costs start to rise, it can be tempting to simply absorb the increase and continue business as usual. However, this can quickly lead to financial difficulties. Instead, small businesses should take a close look at their spending and see where cuts can be made. In some cases, it may be possible to negotiate better deals with suppliers. Additionally, small businesses should consider ways to increase their revenue, such as by raising prices or expanding their customer base.
Thanks to: Tali Raphaely of Armour Title Company.
231. Make Investment in Technology
You can double down on technology spending in these inflationary times to get more work done with the same or fewer staff while keeping overhead low. You can invest in robotics for your factories, self-service kiosks for your stores and restaurants, RFID and bar coding systems for inventory control, and artificial intelligence-driven automation to answer questions and complete tasks without requiring human interaction.
Thanks to: Megan Young of MCS Rental Software.
232. Monitor Costs and Expenses
Constantly monitor your costs and expenses. You should also keep track of how much profit you are making and make sure that it is enough for your company’s needs. You should also consider investing in some form of insurance for your business, such as property or liability insurance, so that if something goes wrong, you will have the money needed to cover it rather than having to close down or take out loans.
Thanks to: Jensen Lee of bidetsPLUS.
233. Reduce Your Offerings
Reduce the number of items/services you offer down to your core. Raising prices is a no go, as passing the buck to the consumer isn't a great way to go when everyone is feeling the pinch. Cutting out some of your inventory and focusing on the core of your business means lower overhead, maintaining the core of your clientele and the smallest possible impact on your ways of working for the future.
Thanks to: Dragos Badea of Yarooms.
234. Focus on Your Core Products
Cut back on your variety. There is a reason that businesses that only sell one or two things tend to do fairly alright during periods of high inflation - their customers go there for just that one thing, and a price hike due to inflation is unlikely to stop them completely. You'll reduce your overhead nicely and will be able to go back to offering your less popular but still important items once the market has had time to shake back out to something resembling normal.
Thanks to: Kate Kandefer of SEOWind.
235. Resort to Automation
When trying to deal with inflation, cutting unnecessary costs is the first way to go about it. As a remote company that depends mostly on freelance and seasonal employees, we reduced our expenses heavily by automating tasks. While the initial cost might be higher for buying and setting up the softwares and tools, the cost on the long run is eliminated and heavily reduced, allowing us to save time trying to find freelancers to do the job and reduces the high cost of hiring freelancers by automation.
Thanks to: Jordan Fabel of Approved Course.
236. Prioritize higher ROI
It’s not just about cutting costs, but it’s about highlighting nonstrategic spending that does not generate the optimal ROI or maximize shareholder value in the future. Instead of just eliminating or cutting your biggest costs, it is important to differentiate between strategic spending and nonstrategic spending to eliminate costs that do not align with your strategy and do not yield enough ROI. That’s why it is necessary to allocate budgeting to higher ROI to fight inflation.
Thanks to: Zachary Weiner of Finance Hire.
237. Expert Consultations
Here are steps I take to mitigate the effects that inflation can have. One of those steps is getting an expert to help me negotiate my contracts. Because I don't have the same leverage with clients as larger businesses, I can use my leverage with an expert to get me a better deal for my business. Additionally, I can take advantage of small-scale technology like prepaid calling cards for my international calls to save money; this will help offset the costs incurred by inflation.
Thanks to: Maria McDowell of EasySearchPeople.
238. Tip for Helping Small Business
Inflation is caused by the increased costs of raw materials, supplies, and services needed to run your company. Below are three ways to soften inflation's effect on your small business's cash flow.
Small business financing can help small businesses weather financial storms like inflationary periods. A line of credit gives you the freedom to draw cash as needed from your lender. You can be approved for as much as $500,000, and you'll only be charged against what you borrow.
Small business financing can help small businesses weather financial storms like inflationary periods. A line of credit gives you the freedom to draw cash as needed from your lender. You can be approved for as much as $500,000, and you'll only be charged against what you borrow.
Thanks to: Anthony Mixides of The London Vape Company.
239. Go Organic
When inflation rises and the cost of living begins to impact your business, you should look at your expenses and see what can be done.
One expense to save on could be advertising.
Instead, you could look at implementing a more organic strategy that costs less money, but still provides results. If you can cut ad spending and supplement it with original, exciting ideas, then do it! It could pay off in a big way once you get creative and put in the effort.
One expense to save on could be advertising.
Instead, you could look at implementing a more organic strategy that costs less money, but still provides results. If you can cut ad spending and supplement it with original, exciting ideas, then do it! It could pay off in a big way once you get creative and put in the effort.
Thanks to: Austin Walters of WSA - The Communications Agency.
240. Speak With an Expert
You know the saying 'you have to spend money to make money'?
Well, hiring an expert is one of those extra expenses that could help you make more money in these difficult times. If you are able to speak to a professional who has experience in these situations, they can become a valuable asset to help you navigate inflation and the rising cost of living.
Find the expert you can trust, who has a portfolio of success in the past, and can help you prosper in 2022!
Well, hiring an expert is one of those extra expenses that could help you make more money in these difficult times. If you are able to speak to a professional who has experience in these situations, they can become a valuable asset to help you navigate inflation and the rising cost of living.
Find the expert you can trust, who has a portfolio of success in the past, and can help you prosper in 2022!
Thanks to: Edith Hamilton of NEXT New Growth.
241. Promo Swag to Fight Inflation!
We have seen all the prices of our raw ingredients increase, especially with the cost of protein supplements, which have jumped 20% or more. And due to our low margins on these types of products, we have had to pass the cost onto the consumer. To help fight this increase, we are working with our manufacturers to add promotional swag or other unaffected supplements for free with purchase. And this definitely has helped keep sales on those products going.
Thanks to: Jeff Moriarty of Supplement Warehouse.
242. Top to Bottom Costs
Examine business costs from top to bottom to see which ones exactly are hitting your bottom line due to inflation. Is a certain rubber material in your product suddenly 10% higher? See if there’s an alternative to this material in the marketplace without sacrificing quality. See if your business can work around these high demand supplies to help out your profit margins for the time being. These solutions may end up sticking around for the long run after the period of inflation ends.
Thanks to: Monte Deere of Kizik.
243. Reduce Overhead Costs
One way of doing this is by reducing overhead costs. This is where the business managers reduce expenses such as marketing and other expenses. This allows small businesses to earn enough money to keep their operations running for a longer period of time. In the current market, small businesses should do their best to maximize sales while saving money. They should try to find ways to market their products freely to reduce costs.
Thanks to: Tonny Mugendi of NearbyMovers.
244. Partner with Small Businesses
In these difficult times, it's smart for small businesses, startups, and business owners to help each other out. If they can come together, they might be able to assist each other in dealing with inflation.
If you are a small business, I recommend you try to find a small business in a similar situation to work with. Maybe you can share a workspace, collaborate on client work, share tools/equipment, or partner up in another way.
It's smart and could save money/make you money!
If you are a small business, I recommend you try to find a small business in a similar situation to work with. Maybe you can share a workspace, collaborate on client work, share tools/equipment, or partner up in another way.
It's smart and could save money/make you money!
Thanks to: Sean McPheat of MTD Training.
245. Ready to Jump
Porter PR & Marketing expects high inflation to affect marketing budgets, which tend to be the first that are cut. However, in the longer run, as inflation falls, more companies will renew their marketing efforts to gain market share in a rising economy. The takeaways: stay in touch with clients even if they are holding off on marketing. Send them industry updates and relevant news articles. Stay in the forefront of their minds so when they start marketing again, it's your company they call.
Thanks to: Lisa Porter of Porter PR & Marketing.
246. Assess Your Job Market Risk
My advice to small businesses dealing with inflation is to examine their labor market sensitivity. Recruit and retain talent if your business depends on the above professions. This should be done with market-rate salary rises and non-monetary advantages like career development. If your employees despise their job and only show up for the salary, your business is more subject to inflationary pressures than one with intangible rewards like community and purpose.
Thanks to: Robert Warner of VirtualValley.
247. Focus on Cash Flow
Cash flow is the number one concern of small businesses, so you should use advertising and marketing to ensure sales of your goods and services. Then you’ll have a healthy cash flow for your business. You should also carefully analyze where you can cut back on costs to ensure more cash is going into your bank account. Also, you should monitor your accounts receivable to see what’s outstanding and follow up on unpaid invoices to keep your business moving.
Thanks to: Tom Greenspan of Vs Mattress.
248. Product Gross Profit Margins
As market conditions change and prices for materials and labor increase, it’s critical to regularly review how those changes impact the profit margins of each of your products or services. When inflation is high, the best practice is to review margins at least quarterly. Then you’ll be aware when your margins are contracting and have enough time to review and implement potential adjustments before you run into significant cash flow issues.
Thanks to: Dave Polykoff of Zenpost.
249. Tips to Deal With Inflation
One best tip to help small businesses deal with high inflation and the rising prices and costs associated with it is to offer discounts. Discounts attract more customers who continue patronizing their business despite the high costs. The business deals keep more revenue, as opposed to losing money to inflation. Review your pricing regularly and adjust in line with the market to avoid losing profits.
In addition, discounts can help lure in new customers to search for better deals.
In addition, discounts can help lure in new customers to search for better deals.
Thanks to: Sarah Ross of CocoLoan.
250. Employee Retention
One of the worst things that can happen to your firm, whether or not there is excessive inflation, is losing key staff. Without them, you can find it difficult to meet customer demand and risk losing business. Ask your staff what it will take to keep them with you during inflationary times to prevent them from leaving for more inflation-proof employers. While you're at it, make sure your payment system is competitive by giving it a thorough inspection. When it comes to benefits, be creative.
Thanks to: Gerrid Smith of Fortis Medical Billing.
251. Reduce Expenses Where Possible
Your cash flow will improve as a result of cutting back on overhead and variable expenditures, allowing you to provide greater customer service. Examine your present costs and rate them according to the value they provide to your company. Never make cuts that will impair your ability to service your clients or your ability to provide for them. Look at things like the requirement for a physical location instead. Track your spending as much as you can and make cuts when it makes sense to.
Thanks to: Raphael Gauthier of Play To Earn Diary.
252. Consider a Loan
If inflation is having a big impact on your small business, you might want to think about taking out a loan to get more working capital. When inflation is high, your money goes further, and if it continues, there is a good probability that you will be able to repay the loan with cheaper money. You should be sure to use the money you receive from the loan to put back into your business in order to ensure that you can responsibly pay off the debt.
Thanks to: Elliot Ledley of CASPIAN STUDIOS.
253. Moderate Your Labor
Moderating labor is a way you can navigate inflation, especially if you are a service based company. With such a tight market, the cost of labor has been jumping quickly. While I generally support higher wages for employees, you do need to be smart, even creative, about your labor costs. Also, if you are a product based company, one way to deal with inflation is to ‘buy down’ inflation by purchasing larger quantities of your raw goods to improve your gross margin.
Thanks to: Kristian Pettyjohn of PhotoUp.
254. Raise Your Rates!
Don't be afraid to raise your rates in order to keep your profit margin. Too many small business owners are feeling like they can't raise their rates. They may be wondering if anyone will really pay for their product or service. Other business leaders are feeling bad because everyone is already raising their rates. Most small business owners don't have great margins to begin with, so if they don't raise their prices, their profit may be non-existent. Without profit, you don't have a business.
Thanks to: Stacy Tuschl of Stacy Tuschl, LLC.
255. Maintain Timely Revenue
Small businesses are less likely than big enterprises to have so much cash that increasing inflation isn't a problem. Keep a watchful eye on your accounts receivable (AR) to ensure timely payments. Keeping your customer relationships strong is essential for business success, but don't forget that your receivables may help keep things running smoothly. In difficult economic times, it's important to manage your small business' finances. Reevaluate and adjust your processes where it's needed.
Thanks to: Jay Bats of ContentBASE.
256. Seize Success in Global Shift
During moments of apprehension, start with anchoring your convictions: by managing your mood, monitoring the words released from your mouth and mining your mind for insightful gems to be a guiding light.
1) BE DELIBERATE: in your communication and leadership presence.
2) BE DECISIVE: in ambiguity to prevent action avoidance.
3) DELEGATE: to decrease inefficiency in productivity.
4) DELIVER: superior service and stellar products.
5) BE DISCIPLINED: in high values, priorities, and commitments.
1) BE DELIBERATE: in your communication and leadership presence.
2) BE DECISIVE: in ambiguity to prevent action avoidance.
3) DELEGATE: to decrease inefficiency in productivity.
4) DELIVER: superior service and stellar products.
5) BE DISCIPLINED: in high values, priorities, and commitments.
Thanks to: Kristie Kennedy of Queenfidence Image Consulting.
257. Tackle Inflation With Ease
If a small business owner wants to increase their profits, then they need to find ways of dealing with inflation.
Raise the price of your product or service and then lower it a day or two later. The consumer will not mind because they know you wanted to make more money, but also wanted to give them a break on the price. People like this kind of ethical business owner, and so will continue doing business with them even if they pay a little more for the product.
Raise the price of your product or service and then lower it a day or two later. The consumer will not mind because they know you wanted to make more money, but also wanted to give them a break on the price. People like this kind of ethical business owner, and so will continue doing business with them even if they pay a little more for the product.
Thanks to: Theola Tinney of VinPit.
258. Insurance: Check & Shop Around
Do a thorough review of your insurance coverages. In addition to general liability, see if your policy includes inflation guard. If not, you may wish to get that as an add-on. Since inflation has increased replacement costs, you want to make sure you are not now underinsured in case something happens. And since business insurance can vary greatly in pricing by company, also take the time to compare rates, as well as coverages, to get the best deal.
Thanks to: Karen Condor of ExpertInsuranceReviews.com.
259. Overboard on Overhead
Optimize your spending on overhead expenses. It’s easy to forget about overhead costs from day 1: rent, insurance, materials, etc. However, if your business faces issues from the recent uptick in inflation, reevaluate those expenses. For example, do you need to pay that much in rent? Is there any equipment your business doesn’t use?
Thanks to: Allison Harrison of Goodbee Plumbing and Drains.
260. Analyze and Specialize
To deal with inflation, don’t make the mistake of raising prices as a first resort. I also wouldn’t advise you to focus solely on cost cutting as an initial step. Instead, analyze the products and services which are responsible for the majority of your income and ensure your expenses are in alignment with these areas. Consider specializing in the products and services which are your top earners, severely reducing or eliminating costs associated with those products or services that are not.
Thanks to: Angela Roberts of Craresources.
261. Increase Your Customer LTV
Many businesses fight lean times and rising costs by frantically trying to capture more customers. Their thought process is that their current database won't be enough to stay profitable during turbulent times. However, studies show that it's more expensive to capture new clients than it is to nurture existing clients. Use this to your advantage. When inflation hits, increase your customer lifetime value by cross-selling and upselling them. They are your best advocates and are ready to buy.
Thanks to: Royce King of Your Startup Coach.
262. Stock Up on Inventories
As a business person, if your business is currently dealing with inflation, one of the best things to do is to stock up on inventories.
It will help your business in the first few months of high inflation. In this way, you can slowly change the price of your goods to be able to cope with the inflation. There will be no sudden changes in your goods’ price that can shock your customers. They will remain to support your business regardless.
It will help your business in the first few months of high inflation. In this way, you can slowly change the price of your goods to be able to cope with the inflation. There will be no sudden changes in your goods’ price that can shock your customers. They will remain to support your business regardless.
Thanks to: Lean Davis of Cicinia.
263. Stock Up
Stock up on core supplies. With prices rising, it’s important to purchase your basic supplies now. As long as you have the space for the items and they’re non-perishable, there’s no harm in stockpiling. This is one simple way to combat inflation.
Thanks to: Christian Kjaer of ElleVet Sciences.
264. Stockpile Materials
We renovate a lot of houses, so material costs have a huge effect on our bottom line. With inflation causing prices to continue going up, when we find a decent price on materials, sometimes we will stockpile them for future jobs so we know exactly what that cost is going to be.
Thanks to: Erik Wright of New Horizon Home Buyers.
265. Set Customer's Expectations
As a small business, we pride ourselves on communicating well with our customers. Inflation will almost inevitably force us to increase our prices. So, we are preparing for that by letting them know ahead of time that we are doing our best to cut costs to keep our prices as consistent as possible, but that price increases may be coming due to inflation. We make sure they understand that we are not raising prices to make more money but just to stay in business and continue serving them.
Thanks to: Jessica Wright of Dream Team Fundraising.
266. Incentives for Increased Sales
Provide incentives to your employees for causing high sales rates. For example, you can reward them with gift cards, bonuses, and public recognition in team meetings. When your employees feel motivated to work hard, this will help to increase the company's customer base and revenue.
Thanks to: Miles Beckett of Flossy.
267. It's Time to Run a Sale
While cutting costs could always save you a little money, running a sale will get you just that: sales.
Cutting costs where you can is good, but you also need to find ways to make more money with your business during this time. This doesn't mean you will sell everything for half the price. But small discounts are enough to entice more people to buy from you.
Cutting costs where you can is good, but you also need to find ways to make more money with your business during this time. This doesn't mean you will sell everything for half the price. But small discounts are enough to entice more people to buy from you.
Thanks to: Andrei Vasilescu of Don't Pay Full.
268. Stop Excessive Ad Spends!
Free visits from search engines versus paying growing ad costs is a great way for businesses to bear the weight of inflation. We help businesses identify how competitors appear more prominently and often in Google, Bing, DuckDuckGo. Example: navigating to the competitor's sitemap.xml page in the browser provides a list of pages we match to their own pages as content inspiration. We examine where competitors receive traffic and incoming hyperlinks to improve clients’ SEO and referral business.
Thanks to: Steve Wiideman of Wiideman Consulting Group.
269. Adapt With Creative Changes
At Truck Driver Institute, we save on expenses while making sure that students have everything they need to get a commercial drivers license (CDL). During training, cutting down on distance can save gas. With 11 locations and thousands of student drivers, even a few miles per student can add up quickly. For other small businesses, finding ways to streamline logistics or cut down on energy costs is particularly useful, as gasoline prices represent the growing inflation we're experiencing.
Thanks to: Lauren Gast of Truck Driver Institute.
270. Time Your Debt Wisely
Smart business owners never treat debt carelessly. Having said that, if you need to make large purchases, it is best to do so before the price increases. If the business needs equipment, land, or other assets, it's a good idea to think about getting them before inflation hits. In this case, the business borrower makes money by getting cash when it is worth more and paying it back with cash that is worth less than when it was borrowed.
Thanks to: Daniel Akins of Theyardable.
271. PawPurity Goes Greener
Paw Purity expects high inflation to be short lived and that prices will eventually drop. As a green company that manufactures 100% natural pet care products, we have curbed our purchases of mailing boxes, product wrapping and package fillers and are instead turning to lightweight biodegradable materials. In the long run, these materials have lowered shipping costs, are better for the environment and take up less storage space. Best of all, these changes helped us to be an even greener company.
Thanks to: Lisa Porter of PawPurity.
272. Revamp Your Marketing Strategy
Be more creative with your marketing strategies and capitalize on whatever is completely unique about your business. If your business doesn't stand out, you will have a much harder time acquiring customers, especially as people become more cautious with their spending habits.
Thanks to: Drew Sherman of RPM.
273. Be Upfront with Customers
Be upfront with your regular customer about what's happening. Don't let them be surprised when they receive an invoice or try to place an order and discover they are paying more than normal. Customers are more likely to comprehend your predicament, pay a greater price for your goods or services, and stick with you if you are transparent with them.
Thanks to: Jay Soni of Yorkshire Fabric Shop.
274. Minimize Unnecessary Costs
You can save money by lowering and eliminating unnecessary expenses because one of the main effects of inflation is rising prices. You can find areas where you can reduce some of these expenditures by adjusting financial estimates. If you are unable to boost pricing as well, you may be able to balance your budget by cutting expenditures in other areas. You may prevent many of the negative consumer reactions to inflation by keeping your prices low.
Thanks to: Harry Hughes of Dangler.
275. Explore What-if Scenarios
Making alternate plans and creating what-if scenarios may be necessary as part of a response to the uncertainty that arises during economic changes. You can start modifying goals and milestones in response to how you anticipate things to evolve once you've started creating these scenarios.
Thanks to: Jason Ball of Considered Content.
276. Invest Some of Your Money
Investing your money is one strategy for protecting against inflation. Markets typically rebound over the long term and even during a financial crisis. By purchasing sophisticated financial instruments like options and futures, many businesses are able to reduce their risk. These are typically applied in the trading of commodities.
Thanks to: Amar Vig of London-fs.
277. Open Yourself to New Customers
With inflation come fresh approaches and chances to develop new clientele. To uncover ways to reinvent your offering to suit various budget types, look at how your consumers are recommending your services. By following trends, you can create new product categories and attract new customers. This will guarantee that you are at the forefront of your industry.
Thanks to: Alex Constantinou of The Fitness Circle.
278. Adjust Contract Lengths
Think about making longer-term deals for materials or certain costs. A long-term contract that locks in prices if expenses are predicted to increase could help protect the budget. Vendors may also like it because it gives them a guarantee of income, which lets them plan and set a budget even when times are uncertain.
Thanks to: Callum Dooley of Elite Fridges.
279. Market to Loyal Customers
Despite the high expense of acquiring new customers, it's necessary since loyal consumers can be counted on to maintain revenue streams and profitability regardless of the economy. A client loyalty program is an excellent way to generate repeat business. Repeat customers can receive discounts, rewards, or other perks in exchange for a membership fee. Participating customers are more likely to remain loyal to a brand, reducing the amount of money spent on advertising and recruiting new customers.
Thanks to: Liam Quirk of Enofaber.
280. Invest in Yourself!
Inflation is normal. How you handle it is what makes all the difference. When prices start to soar, invest in yourself. Buy assets that will increase the value of your business. Consider things that will improve the product or services you give to your customers. Get creative. If you don't have the cash, then take out a loan. By raising your prices and increasing the value of what you are doing for your customers, you can combat inflation and become a better business in the process.
Thanks to: Jennifer Barnes of Optima Office, Inc.
281. Prepare for the Unexpected
Unforeseen circumstances are a part and parcel of running a business — they shouldn't stop you from having contingency plans in place.
Start by evaluating everything that could go wrong during the event of inflation and build a plan that efficiently cuts your losses down. For some, this could look like creating an emergency fund, diversifying your income streams or retraining employees for new roles.
Start by evaluating everything that could go wrong during the event of inflation and build a plan that efficiently cuts your losses down. For some, this could look like creating an emergency fund, diversifying your income streams or retraining employees for new roles.
Thanks to: Brian Casel of ZipMessage.
282. Cut Your Expenses
As a business person, the best thing to do when you have a small business struggling to cope with high inflation is to cut your expenses.
If you are using a wireless internet connection or WiFi in your enterprise, try to cut it down or minimize the use of electricity if it is not necessary. To maintain the number of customers, retain your goods' prices. It is vital to make the customers stay amidst the high inflation in order for a firm to survive.
If you are using a wireless internet connection or WiFi in your enterprise, try to cut it down or minimize the use of electricity if it is not necessary. To maintain the number of customers, retain your goods' prices. It is vital to make the customers stay amidst the high inflation in order for a firm to survive.
Thanks to: Yukee Will of Everwallpaper.
283. Adapt And Be Nimble
Regardless of when you're reading this, the issues your small business experienced even six months ago are likely to be vastly different from the challenges you're facing now. If you wish to stay afloat during significant inflation, try raising pricing and conserving where you can.
Rather than boosting prices across the board, try to focus price increases based on specific supply problems. Customers will be less harmed due to this since they will understand your decision-making process more.
Rather than boosting prices across the board, try to focus price increases based on specific supply problems. Customers will be less harmed due to this since they will understand your decision-making process more.
Thanks to: Corey Tyner of Buy Yo Dirt.
284. Look for Cheaper Suppliers
The current rising costs, or what is generally referred to as inflation, are a source of anguish for all small business owners. We all know that when there is inflation, the cost of materials rises, forcing owners to raise their prices, and reducing consumers' purchasing power. Despite inflation, my greatest strategy for this is to look for suppliers with the cheapest cost. Even a cent gap has a significant influence in the long run.
Thanks to: Stefan Campbell of The Small Business Blog.
285. Expand Your Network
Concerns about supply chain disruptions are adding gasoline to the inflation fire. One of the essential strategies to shield your business from the worst effects of inflation is to secure the inventory it needs to function.
This will need some extra work on your side to engage with your suppliers to determine which items are in the most demand. This might assist you in anticipating future supply issues and preparing appropriately.
This will need some extra work on your side to engage with your suppliers to determine which items are in the most demand. This might assist you in anticipating future supply issues and preparing appropriately.
Thanks to: Sam Willis of Rain Catcher.
286. Focus on Productive Employees
In times of crisis or inflation, a business must strive to focus on its most talented employees and know what they can give to the company because the more money an employee makes, the more the business owner will make as well. Investing in those talented workers may help you buy some time while making difficult decisions in time of crisis. With this, you will be able to benefit not just the talented workers but all of the people working in it as well.
Thanks to: Rachel Davis of SoulFactors.
287. Lock it in Before it Blows Up!
Now could be a great time to invest in a small business loan or line of credit. Interest rates will likely continue to rise. So lock in a low rate now!
I would rather try something like this rather than cut spending. Having funds in hand helps to alleviate costs brought on by inflation. Use these funds for marketing and advertising initiatives to reconnect with current customers or to acquire new ones.
I would rather try something like this rather than cut spending. Having funds in hand helps to alleviate costs brought on by inflation. Use these funds for marketing and advertising initiatives to reconnect with current customers or to acquire new ones.
Thanks to: Richard Heilshorn of Balanced Bridge Funding.
288. Study Marketing Research/SEO
Developing strategies to increase internet traffic during inflation is crucial for every organization, and a lack of SEO stifles such growth. Top marketing blunders occur when you do not consult an SEO specialist to assist you in ranking your website higher. It's almost futile to carry out a marketing strategy without considering SEO. Ultimately, ignorance of market research is analogous to throwing a dart on the incorrect pallet wood; you prepare for accuracy but strike the wrong tree.
Thanks to: Daniel Maman of My Phenom Fitness.
As always, many thanks to everyone that contributed to this article!
Also, if you would like to become a part of the CarolRoth.com contributor network and find out about opportunities to contribute to future articles, sign up here: https://www.carolroth.com/carolroth-com-blog-contributor-sign-up/
