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5 ways companies can prepare.



Inflation affects consumers and businesses across the country. With price increases and economic changes, it is important that business owners, especially small business owners, are prepared. Planning ahead, cutting costs and building protection around your plans and assets can set you up for success. Not sure where to start? Read our five inflation and small business tips to prepare for what’s ahead:

  1. Study your business expenses and find places where you can cut costs. This is not always a fun process, but it can lead to measurable savings for the future. Start by making energy-saving improvements to your buildings. Your energy supplier may offer business rebates and incentives for these improvements. Consider adding an extra work day for your employees to save on expenses. Move to a smaller office if team members work remotely. Look at the materials you buy and shop with new suppliers to see if there are ways to save.
  2. Focus on employee retention to keep costs down and maintain efficiency. Hiring and training new employees takes time, can be costly and slows down production. Working to retain current, experienced team members will not only keep costs down, but will also make efficiency higher. Focus on finding ways to be the most productive and keep morale high. On top of that, you can offer continuing education opportunities so your team can grow and take on new responsibilities.
  3. Get strategic with pricing. Raising your prices may be necessary during times of inflation. If your company raises its price, be sure to do so in modest increments and in a strategic manner. That way, consumers can adjust to the new pricing without too much surprise. Explore tactics like removing discounts or starting to charge for shipping. Being transparent and honest with your customers can help them understand why price increases are necessary right now. Be sure to provide your employees with appropriate talking points to ensure your customers receive a consistent message.
  4. Stock up. As we approach the end of the calendar year, it’s a good time to review your deliveries. Note what you do and don’t need and build your inventory now. It’s smart to stay ahead of the game and order storable inventory before potential price increases or shortages. When storing inventory, do so safely and keep stock out of the way to prevent damage.
  5. Have a plan for economic effects such as inflation. Saving costs and increasing productivity are hugely beneficial for small businesses, but inflation can still have unexpected effects. Creating a plan for cost increases caused by inflation can save time and money down the road. Meet with key team members or senior management to plan for potential difficulties. Doing so can make it easier to quit or recover from loss.

Inflation can be a challenge for anyone, especially small businesses. These inflation and small business tips can help you be prepared for uncertainties to come. Want to add an extra layer of protection? Our small business coverage protects you and your labor of love. Talk to a local, independent agent about a policy and additional tactics to fight inflation today.

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