Inflation can have a significant impact on businesses of all sizes. It can lead to higher costs for materials, labor, rent, and other expenses, ultimately reducing profit margins and impacting cash flow. To stay afloat and thrive in an environment rife with financial uncertainty, it's crucial for businesses to take appropriate steps to protect themselves.

We asked top getWise experts about how they are navigating these uncertain waters and laid out their top tips on mitigating the impact of inflation and keeping your business running smoothly.


Understand your customers’ needs


Know what products or services customers value the most and what they are willing to pay for. With this information, you can adjust your prices, offerings, and marketing strategies to remain competitive in a changing market.

“My career began in market research, and staying close to customers by listening to them for what they need is always essential. But perhaps, even more so during a time of economic uncertainty. Deeply understanding what your customers need and how you are relevant and resonant helps protect your customer relationships when they may be choosing to reduce spending or adjust their priorities.”
-Leslie Forde, a getWise expert and CEO of Mom's Hierarchy of Needs, LLC


Improve operational efficiency


Take a look at streamlining processes, reducing waste, and improving productivity. Doing so reduces costs and improves your bottom line, even in the face of inflation.

“First, businesses should adjust their pricing strategy to accommodate inflation, gradually increasing prices or offering different pricing structures to customers. Second, negotiate with suppliers for better prices or payment terms to reduce the cost of goods sold. Doing both will improve operational efficiency, reduce costs and increase productivity.”
-Faheem Smith, a getWise expert and CEO of Strike First Marketing


Do a comprehensive review of all expenses


It's essential to review your expenses regularly but particularly during times that have you watching your cash flow even more closely.  A comprehensive review will likely uncover some expenses that you can eliminate. For example, subscriptions to different tools, apps and so on.  Many businesses end up paying for subscriptions they don't use, which can add up over time and eat into profits.

“Get rid of physical office space. Get rid of subscriptions that do not add value to the business. Use a cash-back credit card for all business purchases and shop for discounted items such as paper goods, office supplies, etc.”


-Mary O'Sullivan, a getWise expert and Owner of Encore Executive Coaching

 

Keep your focus


As inflation continues to soar, you may feel pressure to diversify your income or add new revenue streams to your business. However, it is also important to consider focusing on what brings you the most money and putting all your effort into that instead. 


“Focus. Reduce the various offerings you have to a key few - that way, you are not spending all your time selling many things, and, as an added benefit, your clients have more clarity on what you can help them with!”
-Tracie Root, a getWise expert and the Founder of The Gather Community
 

Track economic data


Tracking economic data is crucial for businesses to stay informed about the changing economic landscape and plan accordingly. Consistent attention to industry performance levels can also give businesses the information they need to stay ahead of the competition and succeed in the long run.

“Tracking marketing trends, performing a SWOT Analysis, watching the CPI (Consumer Price Index), and keeping up with demographic information is critical. When economic trends are tracked regularly, a business will gain foresight into challenges that are brewing. Consistent attention to industry performance levels will provide businesses the information they need to gain foresight and create solutions.”
-Jaunta J Rudison, a getWise expert and CEO of Rudison's Enterprises, Inc.
 

By implementing these expert tips, businesses can mitigate the effects of inflation and continue to thrive in challenging economic times. Remember, it is crucial to remain proactive and adaptable in the face of economic uncertainty.

 

This article was written in partnership with getWise - a technology platform that provides on-demand expert advice for small businesses and women to accelerate their business or career.