Making a Small Business Plan to Fight Inflation
It’s been difficult for small business owners the last few years, and it hasn’t gotten easier. Just as Covid-19 had receded enough for companies to start resuming normal operations, inflation reared its head, and the possibility of recession appeared on the horizon. The flexibility entrepreneurs had displayed during the pandemic now needs to be redirected towards countering inflation and depressed consumer sentiment.
While this new challenge can seem overwhelming, there’s no need for small business owners to lose heart – or panic. Folding strategies to deal with inflation into your existing business plan can help you and make your company more robust in the long run. Here are some easily implemented ideas for surviving inflation and ensuring your business’s success.
- Don’t Wait, Act. If you think you can wait out the current inflationary pressure, think again. Covid-19 taught entrepreneurs and business leaders that ignoring the obvious does more harm than good. While not making knee-jerk decisions is essential, you still need to be able to read the room, as it were, and be prepared. As long as you make your choices carefully – especially those directly affecting your customers (like pricing) and employees (like staffing) – you can help ensure your business can ride out this current wave of high inflation or other similar market conditions.
- Cut The Right Costs. When everything’s getting more expensive, one sure way to help your bottom line is to cut costs. But while it can be easy to look at cutting your highest cost items, you’d be better served taking a closer look at things further down your expense sheet. Small items quickly add up and can sometimes be an afterthought. Here are a few examples of small items you can cut out of your budget which will soon add up to significant savings:Print only when necessary. Paper and toner are expensive and only getting more so. It’s easier than ever to save items to the cloud, and emailing invoices cuts out material costs and mailing fees.Save power. If you’re still working in a physical office, some electrical expenses you may not have considered could be costing you. Inefficient lighting and thermostat settings may already cost you big and can easily be corrected. Turning off equipment at the end of the day, rather than leaving it on all the time, can also save money and wear and tear.Price your policies. If you haven’t checked rates on your business insurance policies, this is the perfect time to see if you’re overpaying. By pricing other carriers, you could save big, and it’ll only cost you time.Prioritize debt. Interest on loans and company credit cards are another source of potential savings. If possible, try shifting your expenditures to prioritize paying down your debt – or paying it off altogether. The savings from avoiding costly interest will pay off now and in the future.
- Reward Your Customers – Old & New. Businesses aren’t the only ones hurting due to inflation. Your customers are also finding themselves with less money to spend. Finding creative ways to reward your customers to keep them coming back (with limited expense on your part) is more important than ever. Creating programs that reward repeat visits, like $X off after X purchases, is an easy way to keep customers returning. Membership tiers that include perks like free shipping are an excellent way to incentivize current and potential clients while helping to pay for those expenses. And promotions on social media platforms that give away products or offer discounts for spreading the word about your company are easy ways to attract new customers while utilizing your current ones.
- Update Your Phone System. Your phones may not only be a cause of unnecessary expenses but avoidable inefficiencies for your organization. An auto attendant system helps eliminate costs while improving customer and staff conditions. Moving your landline numbers into the cloud can drastically reduce your telecommunications costs by eliminating a monthly phone bill. Online faxing saves on paper, toner, and fax machine upkeep. Overall, a virtual phone system can distribute calls efficiently and professionally and free up your receptionist and employees for other necessary work.
AccessDirect has been helping small businesses through economic good times and downturns for over 25 years. We’ve helped companies through the dot-com bubble, the Great Recession, the Coronavirus, and this post-pandemic inflationary market with affordable phone systems that make sense for limited budgets. If your company is ready to transition to virtual phone service, contact us today to speak to a knowledgeable representative and start your free one-week trial!