Tips for Coping With Inflation as a SmallBusiness Owner

Running a small business has been incredibly challenging in the past few years. The small businesses that made it through the pandemic are now dealing with unprecedented inflation. In fact, inflation has soared to its highest level in over four decades! As a result, common goods are experiencing significant price increases. We’re seeing costs skyrocket for fuel, energy, transportation, housing, and basic household goods. What's more, the government is raising interest rates in an attempt to curtail inflation, putting even more strain on business owners who rely on loans.

Here are some tips from Cleanerpreneur.com to help your business address inflation and make ends meet during this difficult time.

​Cut Your Marketing Costs

If your profit margins are shrinking, look for ways to cut costs. Small businesses often spend a large portion of their budget on marketing. Take advantage of opportunities to cut your marketing costs so you can maintain your profit margins. One way to do this is to use low-cost and free marketing solutions like social media to connect with customers. Social media is great for building brand awareness, showcasing your business values, and creating a community around your brand. 

Posting on social media shouldn’t add too much work to your daily to-do list. With the help of a robust online graphic design tool, you can create an eye-catching custom banner in minutes! Just choose a template and customize it with your own text, fonts, colors, and photos.

Focus on Repeat Customers

Another way to reduce your marketing costs is to focus on encouraging repeat business instead of landing new customers. Repeat customers are easier to sell to, spend more money, cost less to acquire, and turn into promoters by sharing your business with people in their networks. Encouraging repeat business isn’t about lowering your prices. When you do this, you devalue your products. Instead, make sure your customers know that you have their best interests in mind, that you stand behind your products, and that being loyal to your brand will pay off. Focus your efforts on customer service rather than sales!

Keep Your Finances Organized

Good financial organization is critical when it comes to weathering a period of high inflation. How you manage your cash will determine whether your business sinks or swims in times of crisis. Keep good financial records so you can monitor your cash flow accurately and make sure you understand how cash flows in and out of your business.

If you’re still tracking your finances with spreadsheets, consider investing in accounting software. Smart accounting programs can automate a lot of your financial management process, reducing the risk of errors and generating essential financial reports to help you stay on top of your finances. You can save money by choosing free accounting software with basic features like tax tracking and client invoicing.

Automate Business Processes

Accounting is just one business process that you can automate. By automating other time-consuming business tasks, you can boost business productivity and save money on labor. Automation can also help you provide a better customer experience, enhancing your customer retention rates so you can keep making sales without spending extra money on marketing.

Take Steps to Retain Your Talent

There is a serious shortage of workers right now. Implement strategies to keep your employees happy so you can retain the talent that your business relies on. GreatPlaceToWork.com suggests getting to know your individual employees and ensuring each person’s goals and needs are being met at your company. Be sure to provide growth opportunities for your team, establishing career paths for a range of interests. Most importantly, take the time to acknowledge the hard work of your employees and compensate them properly, even if you can't afford a wage increase.

If your business is struggling right now, you’re not alone. It’s not easy making ends meet when your business is facing unprecedented costs due to rising inflation rates. Before your finances get out of hand, look for ways to reduce your marketing costs, automate regular business processes, set up an accurate financial tracking system, and focus on encouraging repeat business from your loyal customers. You will get through this!

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Do you run a local cleaning business? Check out Cleanerpreneur.com for resources, courses, and podcast episodes dedicated to entrepreneurs like you! ​