I’m sure everyone has read somewhere lately the harsh question “Is your business inflation proof?” This question has appeared on most entrepreneur and small business magazines, websites and all over social media. And the answer is a resounding NO!
No business is inflation proof. There is no such thing. With the increase in prices on everything from meat to milk, from travel tickets to gas, no….we are not inflation proof.
But let’s discuss how to keep your small business in the black when the economy around us goes haywire.
Rainy day fund, emergency fund, separate savings account; whatever you decide to call it, every small business owner should have one. This set aside money should be specifically for your small business emergencies, and it would be unrealistic to think that there will never be a time that a crisis will arise. This money can be used to order supplies, pay your employees, or to pay business related bills. As tempting as it is to have this extra money, it should only be used to save your business.
Cut down on expenses
Business expenses are part of the small business world. You will have to by more products, pay for advertising, and so on and so forth. Cutting down as much as possible when the money coming in is less can make or break a small business. Start by searching for the best bargain when buying products. Even if you have bought products from the same manufacture for years, if they are not the lowest price for the quality, you should look to changing who you buy from. Marketing can sometimes be the most expensive service you pay for. You may find that one way to limit your spending for it is to regurgitate some older ads or marketing strategies. Find the ones that worked in the past and reuse them. You would be in good company. Have you seen the commercials on tv lately ? At least 40% of them are from the past.
Sales and Discounts
Having a sale is always a good idea, even when things are good. Sales get old customers buying and new customers in. You don’t have to always put your entire inventory on sale. Mark down the price of certain well liked items or services for a certain amount of time. Offer coupons for a percentage off their next purchase, to get the customers coming to you again. I’m not talking about giving away the store here, just a small decline to get customers buying your product or service.
The absolute best advice I’ve ever received pertaining to my small business is to plan for the worst and work for the best. Have a plan for when things go south and when money is tight. Plan it out and document it. Share that plan with your employees so that everyone is on the same page when the plan needs to be put into effect.
In conclusion, small businesses will fluctuate. You may go from making 6-figures one month to making $6 the next. You will have to stay motivated and keep moving forward for your business to work. The bottom line is don’t be afraid to do whatever it takes to keep your business afloat.
Until Next time, wishing you all the best in your business.
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