Small Business in the time of Inflation

Help On Deck
16.01.23 11:21 PM Comment(s)

Small Business in the time of Inflation 

​How to Navigate Economic Trends

By Brionna Tillman

As we settle into another quarter, inflation has prices breaking all-time highs while our profits stay stagnant. With the rise in the cost of products and services, our purchasing power diminishes. We aren't just weathering the increase in prices, however. Supply chain issues from the COVID-19 pandemic logistics and staffing shortages plague our daily operations. Many business owners are even worried about experiencing a recession. As national director of Goldman Sachs 10,000 Small Businesses Voices, Joe Wall says, "small businesses are at the tip of the spear of economic cycles."

What are my options?

To start, you could look at ways to reduce your overhead. This could look like finding new vendors or suppliers. You can scale down your variable costs on things such as office supplies or travel. Evaluate your current marketing strategies to determine if you are getting a return on your investment. Lastly, investing in your workplace culture to keep your employees around (believe it or not, voluntary employee turnover costs U.S. businesses one trillion a year!). Lastly, a more difficult decision is to increase your prices to offset the effects of inflation. 

It's reported that 53% of businesses raised their prices by less than 10%.

More Free Advice

For more advice on navigating economic hardships, we recommend The 8 Gates’s 3 Minute Money Tips. The 8 Gates is a small business created by Janine Bolon, the self-titled Financial First Responder that designed online courses related to financial well-being and debt-free living. 3 Minute Money Tips is a podcast that offers bite-sized financial advice with featured guests who are experts in their field. 

The show broadcasts on the radio and 42 internet platforms! 

You Got This!

It may seem like the economy can ebb and flow like a tide, and when we are faced with changes it may look like uncharted territory. Evaluate the options mentioned above and make decisions based on your business needs. Are you looking for more? Visit Janine Bolon’s The 8 Gates to sign up for free tips, techniques, and skills on financial stability. 

You can learn more about business growth by visiting Help On Deck and connecting with us via text or schedule a virtual visit today!

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