7 Steps To Help Your Business Fight Inflation

Posted by Karen Erdelac on Sep 13, 2022

7 Steps To Help Your Business Fight InflationIn August, the Consumer Price Index rose 8.3 percent from a year earlier, a rapid rate of increase for consumers and not as much of a slowdown as economists had expected. Because of this, many small business owners continue to feel the squeeze. According to the Bureau of Labor Statistics, significant increases in food, shelter, and gas prices drive high inflation. When costs rise and profit margins shrink, merchants must act to keep their businesses profitable.

Here are seven actions you can take right now to minimize the impact of inflation on your business.

  • Know where your business is spending money and cut your expenses. Review your current spending and determine if it aligns with your strategy. If employees are wasting office supplies or delivery drivers are taking the scenic route, address the issue. If your online advertising budget isn't bringing revenue, make adjustments. Cancel unused products and services.
  • Stock up on necessary supplies. If there are items you know you'll use in the year ahead, front-load that inventory. Purchasing in bulk allows you to avoid future price increases, which means you won't pass on higher costs to your customers.
  • Have multiple suppliers. With numerous suppliers, you'll have options if one can't get what you need or their prices spike.
  • Review your products and services. Identify which ones are the most profitable. Remember, consumers might be open to lower-priced options to work within their budgets. Consider temporarily eliminating some products, services, or expenses to better focus on what generates the best results. 
  • Raise prices wisely. Don't increase your prices so much that your customers turn to your competitors. Raise your prices just enough to offset inflation and keep your business profitable. Also, don't be sneaky about pricing. Be transparent. Let customers know about any price increases and help them understand why. 
  • Prioritize customer service. Don't cut back on customer service by being understaffed. If you don't have the budget for a full-time employee, add part-time staff. 
  • Use technology. Self-serve customer options can reduce costs and take pressure off existing staff in an already tight labor market. Online ordering and Self-ordering kiosks have a great return on investment. Running your business more efficiently will go a long way to fighting inflation. 

If you need cash now to run your business, Quikstone Capital can help. Since 2005, Quikstone has helped thousands of merchants just like you get through the hard times with easy, fast, and flexible working capital. If you accept credit cards, you could qualify for up to $250,000. Use the funds for any business need, including strengthening your cash flow, purchasing new equipment, hiring employees, increasing inventory, and adding the latest technologies. Quikstone has an A+ rating from the Better Business Bureau, and 80% of our merchants are repeat customers. There's no cost or obligation, so apply today!

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