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3 Simple Ways to Inflation Proof Your Business

There’s no avoiding it –– Inflation is here and hitting small businesses hard. According to a 2021 Business.org survey, “in 2021, the US faced the highest month-over-month inflation rates since 2008.” On top of that, the survey also noted that a majority of small businesses are facing 20% or more in increased costs. 

Do you find yourself in that majority? If so, you’re not alone. It’s becoming near impossible to dodge increased expenses due to inflation, and as business owners and entrepreneurs, you’re responsible for making the adjustments necessary to preserve and protect your company. Whether inflation is impacting your business through increased costs, supply chain delays or even maintaining customer loyalty and satisfaction when your prices rise, it’s essential to take a strategic approach to mitigate the effects of inflation.

Remember, there’s not a “one and done” solution to avoid inflation completely, but there are strategies you can implement to better combat those impacts. Here are 3 ways to inflation-proof your business. 

  • Reduce Inventory and Costs

This may be a “no brainer,” but reducing inventory and cutting costs in the first place to start when combatting inflation. If you’re a direct seller, it’s highly likely that your suppliers are facing difficulties with inventory and supply chain demands. Suppliers are actively updating their requirements when it comes to ordering minimums and delivery timing. It’s important to stay in the know with these updates and inform your customers of any delays that may be faced. If you don’t rely on a supplier and need to cut costs, it’s worth considering only carrying the bare minimum inventory needed and increasing delivery times for your customers to avoid investing in excess inventory that’s not sold. Or, if shipping expenses are taking up a significant amount of your budget, look at revising your approach and try to find shipping discounts wherever you can. 

  • Feed Your Success

What do we mean by this? Put your money in the areas that will fuel your growth. If you need to increase sales by a certain percentage and your word-of-mouth referral just aren’t doing the trick, research the marketing methods that are foolproof and will boost your sales. This may look like social media marketing, live selling, or even investing in yourself or your team to grow professionally, network, and expand industry knowledge. After all, being the best at what you do is always a safe bet.

  • Address Operational Inefficiencies

Time is money. So, how much time are you spending on manual inventory checks, inputting customer data, invoicing, and managing orders? Just think, with a seamless automation system, all that time spent on operational tasks could be focused on sales and marketing. Automating your workflow and making operational changes may be the solution you need to free up time and place more of your bandwidth to increase sales and grow your business.

Dealing with inflation as a business owner can get difficult. But, it doesn’t mean you won’t survive it. You’re on the right track by taking a step back and identifying areas where you can cut costs, increase profitability, and improve efficiency. We hope these tips will benefit you as you face inflation head-on. And, if you’re interested in learning how to cut shipping costs, automate your workflow or increase sales with live selling,
connect with us today!