How To Survive As A Small Business Owner During The Inflation
- Brainz Magazine
- May 16, 2023
- 4 min read
Updated: Jun 17, 2024
Expert Panelists are handpicked and invited to contribute because of their knowledge and valuable insight within the areas of Business, Mindset, Leadership, Lifestyle, and Sustainability. Members of The Brainz Magazine community of experts will share their best tips, advice, ideas, and hacks on different topics.
Expert Panelists
1. Possess Key Strategies For Business Success
Starting and running a small business is never easy, but doing so during a recession can be particularly challenging. However, surviving and even thriving in the current economic climate is possible. Here are three tips to help you succeed:
First, make sure you have a solid business plan that outlines your goals and strategies for success. This will help you stay focused on your long-term objectives and give you the flexibility to adjust quickly when things change.
Second, it’s important to keep an eye on your cash flow and make sure you have enough money coming in to cover expenses. Consider taking on additional projects or services that might bring in extra revenue if needed.
Finally, always look for ways to cut costs without compromising quality or customer service. Look for ways to streamline operations or take advantage of new technologies that could reduce overhead costs.
2. Adapt Quickly In Response To Market Conditions
Entrepreneurs are subject to a variety of risks. Among the most important is an increase in cost as a consequence of inflation. An increase in costs often directly cuts into narrow business margins and can destabilize a small business. It is crucial that small business owners critically assess costs, risk of inflation, potential predictors of rising costs, the impact of taxes, shipping and handling costs, and even manpower costs. Incorporating a generous margin into the business model for all these factors is essential. Small business owners may need to also pivot rapidly based on market conditions. Controlling expenses is equally crucial. Ultimately, it is important to have a quality product that meets customer needs while accommodating inflationary costs and expenses.
Ketan Kulkarni, Savvy Physician
3. Focus And Identifying Areas Of Competence
Look at your business and pay attention to what you are doing well, then see how you can make that bigger. It likely is something you do differently from your competitors. In my days in Australia, as a pharmacist business owner in a Westfield center, costs and competition were always rising. My business uniquely did a great job in comfort footwear. I took that section of the business and tripled it with the help of the right people on my team and some great suppliers. There are always opportunities, and it pays to look in the mirror and see what you do well already, then dig a bit deeper to create a differentiated offer.
4. Express Gratitude And Commitment
It’s easy to say and common to hear the words “Thank you,” but how often do you express sincere gratitude to your clients? As a Clinical Counselor and Relationship Coach, my clients often express gratitude for how I’ve helped them solve problems and reduce stress, and they always seem to be surprised when I tell them how grateful I am for allowing me to support them. My expression of gratitude deepens our connection as professionals & clients and also demonstrates a level of commitment to meeting their needs. During financially challenging times, gratitude and commitment to serving your clients is key to surviving as a business owner.
5. Stay Positive And Eliminating Negative Self-Talk
One thing I have found in working with so many highly successful and creative people over the years is that your point of view creates your reality. So if you have the belief that times are tough and something isn’t going to work, that is exactly what will show up for you. Likewise, if you have the point of view or belief that you will be or do whatever it takes to move forward, that you will continue to grow and change, and that everything in life works on your behalf, you will create the ease you desire. It’s imperative during times of inflation or financial restructuring that we get present with our own limiting thoughts, ideas, beliefs and points of view. I advise clients to stop negative self-talk, get present, and use powerful tools to change their limiting beliefs. This allows them to create something new and greater than they could have imagined before.
6. Plan Strategic Tax Reduction
You are already paying taxes; why not pay less or no Federal taxes to offset inflation costs. You may already qualify for tax credits that can lower your labor costs during high inflation. Did you know there are high-impact tax reduction strategies for your business return and your 1040 return (personal or joint)? We work best with business owners that have maxed out their deductions but still have more profit but are out of ideas to knock down the tax burden. We offer income-producing assets with huge tax benefits to mitigate or eliminate the Federal tax liability on the 1040 return, as well. Inflation is only an issue for the uninformed.
Ryan Foncannon, Award-winning Advanced Tax Strategist
