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Four Ways Your Business Can Be Creative with Inflation Strategies

As of 2022, inflation has reached a 40-year high, and 32% of small business owners consider it the “single most important problem in operating their business,” according to an April 2022 report by the National Federation of Independent Business.

To weather this, making tweaks could make a difference, says Athena Simpson, who specializes in business and strategy coaching for women. “There are two ways to make more money,” she says. “One is reducing costs, one is actually getting more revenue. If we’re looking at a time where we’re probably going to get less sales, we need to be reducing our costs.”

Audit your expenses If there’s ever a time to do a deep dive into your costs, it’s now. Scrutinize all your expenses, and you may find areas to cut costs. “If you end up saving a couple hundred dollars a month that way, or even a couple thousand, that adds up to a lot over time,” says Simpson.

Invest in areas that pay off As a business owner, it’s tempting to do everything at once. It’s time to do some digging into where you’re spending and where you’re seeing a return on your investments. “A lot of people get caught up in vanity metrics, like how many subscribers I have, how many ‘likes’ I have,” says Simpson. “But what does that actually do for your business?” She tells clients to test which activities are making money and which aren’t, and to make cuts accordingly.

Outsource what you can Bringing in outside assistance to manage tasks means the regained time could allow you to focus on the areas that matter most. “If your time is worth $500 an hour, and you’re doing something that somebody else can do for $10 an hour, then it’s kind of a no-brainer,” says Simpson.

Go virtual The pandemic has taught employers everywhere that they, and their staff, can be productive while working remotely. If you have employees who are able to work virtually, consider how much you could save. “A lot of clients that come to me are wanting to leave their jobs because they had a big wake-up call, they’re realizing that quality of life is really important to them, and they don’t want to go back to the office,” she says.

Consider this moment an opportunity to think creatively and position your business for success, long after the turbulence has cleared.

Wes Ricchio Senior Vice President Wintrust Commercial Banking at Town Bank, N.A.

www.townbank.us/