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5 Simple Small Business Tips for Surviving Inflation

Contributed Article by Nicola Reid

 

Image via Pexels  

It’s impossible to ignore that the economy is in dire straits. We’re facing record-high inflation and gas prices throughout the country, and general costs are 8.3% from last year. Many experts predict a recession around the corner.

Inflation severely impacts businesses and consumers alike. Companies across industries are finding it hard to maintain operations while consumer spending power has taken a dramatic hit. But that doesn’t mean your small business has to accept failure. You can start taking steps today that position you to brave the waves and come out stronger than ever. And CrmXchange has given you five tips for doing just that!

1. Understand the Impacts     

To put up a good fight against inflation, you need to understand precisely how it affects your business. For one, everything is more expensive. The increasing costs of supplies, materials, and ingredients can quickly add up and harm your budget. And the rising shipping costs don’t help either.

Another way inflation impacts companies of all sizes is that it comes with higher interest rates and stricter lending policies. Interest rates are increasing across the board and lenders are becoming more risk-averse, leading to a host of cash flow problems.

And, of course, rising costs are impacting consumers as much as they are businesses. On the whole, consumers are working with less spending power, meaning they are struggling to support businesses even when they want to.

2. Embrace New Marketing Strategies   

Once you learn specific ways inflation is impacting your company, it’s time to devise a plan. Start with your marketing strategy. Many businesses cut back on their marketing budget to offset the rising costs, but this can prove detrimental. People still need to know about your company, and now is an ideal opportunity to boost brand recognition.

Make sure you have a robust visual identity that sets you apart from your rivals. Upgrade your website if necessary, and regularly post high-quality contact on social media. Also, look to other digital marketing channels like email and paid ads.

While promoting your brand online is essential, you don’t want to forget about traditional methods. For instance, you could create flyers to keep at your place of business or hand out around town. And if you use a free flyer maker, you can make your own materials instead of hiring a professional to do it. The right tool will provide a library of pre-made templates and allow you to customize flyers with your brand's logo, fonts, colors, and designs.

3. Reduce Your Expenses

One of the most practical ways to combat inflation is to cut expenses and conserve capital. Consider pausing your growth hiring initiatives and carefully consider if you need to lay anyone off. But comb through your company budget and eliminate all unnecessary costs before you dive into layoffs. Letting people go should be a last resort.

4. Increase Your Income   

As you’re trimming your budget, look for new revenue opportunities, even ones you wouldn’t have considered before the economy went in the hole. There are many ways to increase income, such as:  

• Developing more products
• Offering lower-priced versions of existing products
• Gently raising the prices of your products or services
• Renting out unused office spaces

The strategies that work best for your business will depend on your specific needs and business model. Don’t hesitate to adjust your business model if it helps you meet the needs of the times.

5. Modify Your Offering     

Along with adding new products to your catalog, closely evaluate your current products and the manufacturing processes involved. See if there are any ways to reduce costs without sacrificing quality. And identify any products that are not selling enough to justify production. Slimming down your catalog could help you stay above water a bit longer.

Inflation is real, it’s damaging, and there’s no one-size-fits-all solution for it. But taking the steps above can position your business to tackle inflation head-on and come out stronger in the end. Continue seeking strategies that can push your company onward, even if they're unconventional or new to your team.

Would you like to read more helpful content or access our wealth of customer experience resources? Visit CrmXchange.com today!