4 Ways Small Businesses Can Cope with Rising Inflation
The Bureau of Labor Statistics reports that the all-items index has increased by 8.6% over the last 12 months. What does this mean for small businesses? You can expect an exponential increase in prices for fuel, energy, food, supplies, and even rentals. You may be feeling intimidated and fearful at this time, and questioning your business’ survival. At Xpressurway.com, we believe inflation can be handled with the right strategies in place. Here, we share 4 essential inflation-fighting tips. Let's get into it.
Your business is only as efficient as your employees. The more quickly and efficiently your employees work, the higher your profit margins. In addition, this allows your dollar to stretch further. Use technology and apps to track productivity, improve internal processes and facilitate communication to prevent errors. The labor pool is also minimal right now, so ensure you're sensitive to your employee's feelings and needs while improving productivity. You can do this by offering your employees enough work and competitive wages. Creating a happy and healthy work environment and company culture will also be a critical way to show your customers you care, thus building trust and increasing engagement.
Explore Low-Cost Marketing Options
Marketing will be a critical way to boost revenue and increase sales during this time. Some low-cost marketing options could be to send out weekly email newsletters or invest in PPC marketing. In addition, be sure to have a website and socials that are beautifully designed with a professional appeal. If you have poorly taken photos or content, it will be best to take compelling photos of your product to draw customers in. For example, quickly remove the background from an image for a clear product which can help customers focus directly on your product. This tool will also help you place your edited image on different designs, backgrounds, or environments, thus allowing you to get creative with how you represent your brand.
Look For Saving Opportunities
Many business owners hold out hope for things to get 'back to normal.' This may lead to delays in making the necessary financial adjustments as they wait for the market to stabilize. In reality, inflation historically takes a while to play out and rarely leads to deflation of previous prices. Thus, as soon as you see signs of inflation, start by implementing saving practices. You could identify bottlenecks in workflows that may be costing you or weed out redundant operational practices. You could also save by stocking up on supplies so that you don't need to pay expensive prices down the line or improve profit margins by pricing your products or services right.
Invest in Accounting Software
Errors in accounting or payroll can be difficult to rectify and costly in the long run. That's why investing in accounting software that takes the guesswork out of the equation is best. When managing finances for your business, you want to look for accounting software that does most of the work for you. You can also find software that does this for free with basic invoicing and tax deduction tracking options (as opposed to software with monthly fees).
A recent study from MetLife and the U.S. Chamber of Commerce demonstrated that over 85% of small business owners are concerned about inflation. The reality is that you can only deal with inflation and its impact by being adequately prepared for it. Use all the tools at your disposal to survive - from image editing tools to accounting software - and you should be well set up for this new normal.
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