Small Business Tips for Thriving Through Inflation
by Sam Marcum
Running a profitable small business has always been challenging. But it’s now even harder than normal as inflation and other factors bring the economy to its knees. Consumers have less purchasing power, and companies are scrambling to find solutions and stay afloat.
Navigating the obstacles can be especially complicated for business owners approaching retirement and planning an exit strategy. Fortunately, there are many cost-effective strategies for not only surviving these difficult times but strengthening your business to flourish long-term. Below, Inspire Wealth shares some simple steps businesses of all sizes are implementing to brave the waves in today’s crazy economy.
Keep Marketing Your Business
Your first thought may be to cut back on your marketing budget. After all, that’s what many other businesses do. But that could prove to be a grave mistake because it’s now more critical than ever that people know about your products or services. Revisit your branding to ensure it still aligns with customer expectations, and think about low-cost marketing solutions that can keep your business in the fold. For instance, Facebook ads are an extremely effective and affordable marketing tool.
With over 2 billion active users, Facebook provides businesses with a massive potential customer base. Thanks to the site’s sophisticated targeting options, businesses can narrowly target their ads to only those users who are most likely to be interested in what they have to offer.
And don’t skimp on SEO (search engine optimization) because when you look at the larger picture of marketing, investing in organic search is always a great idea. If you spend money advertising and someone searches for your business, what happens if they can’t find you? That’s where SEO comes in handy.
Invest in Good Accounting Tools
Poor money management is the last thing you need while inflation is at record highs. You can avoid common payroll and accounting errors by implementing a top-notch accounting solution. Look for cloud-based software that provides tax deduction tracking, automation, invoicing, and other basic functions. You might be surprised by how many free and affordable options are on the market.
Reduce Costs Logically
Cutting costs is the most practical method of strengthening your financial position in the current economy. But it’s far from being the simplest. Commit time to sift through your budget and closely analyze where your cash is going. Then, ruthlessly eliminate any expenses not directly benefiting your company. That said, be hesitant to cease long-term investments with a high ROI.
Get Supplies for the Future
At this point, you realize how many supply issues business owners are dealing with. List all of your core materials, and place your order for bulk supplies. That way, you can minimize the impact of rising costs, shipping delays, and other problems.
Think about Your Staff
Raise Your Team’s Productivity
Your profit margins are more likely to be higher if your small business team works more efficiently and productively. It’s important to meet your employees’ needs right now while holding them accountable for their roles. Look for ways to boost morale and engagement, and invest in any productivity tools that can help along the way.
Compensate Your Employees Well
As discussed, consumer purchasing power is in bad shape at the moment. Consider increasing your team members’ wages to help them fill the gaps and maintain their standard of living. Along with encouraging your employees to stick around, this can help you establish your reputation as a company that takes care of its own despite the economy.
Slightly Increase Your Prices
You probably have to raise your prices to fight inflation’s effects on your company. But don’t do so in a way that deters customers. Instead of making dramatic price hikes across the board, be strategic and do it incrementally.
The Bottom Line
We live in one of the most challenging economies in recent history to run a business. But incorporating the ideas above can keep your company in a strong position to succeed. Remember to maintain your marketing strategy, use an image background remover, reduce your expenses, stock up on supplies, and prioritize team productivity. Finally, consider giving your employees a raise, and be strategic in how you raise prices.
Schedule a Consultation
You’re a busy business owner – are you investing in yourself? Schedule a free 30-minute consultation with Inspire Wealth to learn how we can help you succeed.
Disclaimer: The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.