With everyone feeling the pinch as the price of goods and services rise; small businesses are looking for ways to ease the strain. Read on as we deliver actionable tips that will help you maintain the fight against inflation and keep your business on steady ground.
1. Take out small business insurance
As rising inflation drives up the price of pretty much everything, it is worth considering the reassessment of your small business insurance. Your broker will be able to assist you in reviewing your current coverage and assessing it against your future needs. Outdated valuations could leave you severely out of pocket in the instance of a claim. Small business insurance is a way of balancing essential protection against your business budget. Being on top of adequacy, cost of repairs and the actual cost of cover can be a game changer in managing inflation.
2. Hone in on productivity
Running your own business might be a lonely ride at times, especially when it comes to paying attention to productivity. But, in times such as this, sitting down with your employees might be a straightforward way to think out-of-the-box and find some really effective solutions relating to this aspect of your business.
Make a list of each business process you carry out over the course of the week. Look at each of the actions and see where steps can be taken to improve. Finding ways to reduce time spent on these processes means time can be devoted to productivity.
3. Automation
Improving business processes may mean looking at automation. Automation can relieve so much pressure on your business – freeing up your employees to focus on productivity.
Some of the business processes that can be automated are:
- bookkeeping
- inventory
- shipping
- sales and marketing
- contract creation
- contract renewals
- invoices
- collections.
Using software to automate time consuming and repetitive tasks allows business owners to free up their time and gives customers a fast and reliable service.
4. Cut expenses
Look at your monthly subscriptions and service contracts. There may be some room for negotiation when agreeing future fees, or you may decide that some of these contracts can be discontinued altogether.
There’s the possibility of downsizing your office, or perhaps moving to a less expensive area. Corporate rental fees can be a business owner’s largest expense so cutting costs here could save you some serious money and is worth some consideration.
5. Consider price rises carefully
Raising prices is not a decision made lightly. High Inflation hits the consumer as well as the business owner and with less to go round, raising prices can feel like a risky move. But, it is achievable. Avoid alienating your customers with across the board rises, focus more on adding modest rises on certain products, perhaps on items customers will notice less. Make rises incremental but strategic.
6. Stay on top of your supply chain
To protect yourself further against the effects of inflation, explore your supply chain. Take action to reduce your supply chain risk against factors that make you vulnerable. Stock up on supply where possible, seek out domestic suppliers to negate the long lead time of overseas suppliers and hedge commodities if possible.
7. Protect yourself against labor market risk
Creating a HR strategy to attract the talent you want, and retain the talent you’ve already secured is key. If you’re unable to offer competitive salaries, provide non-monetary support, such as career development options. This will demonstrate your business as an investor in people. If your employees feel you have made a solid investment in them – and their careers, they are more likely to reciprocate.
As hard as it is for small businesses right now, these actionable tips can really help you to keep afloat and drive your business forward. And, whilst you might be fighting the inflationary storm right now calmer times will come again.
