Inflation is striking small enterprises like a heavy blow. In fact, research from the National Federation for Independent Businesses shows that almost 40% of small business proprietors consider inflation the single biggest challenge in operating their ventures.
That doesn’t mean you should shutter your doors — rather, you can implement thoughtful strategies to keep your business moving forward through these difficult periods (and any future rough patches).
Owners of small businesses can use the following suggestions to ease the burden of inflation by trimming costs and lowering overall operating expenses so they can remain profitable.
1. Adopt Remote Work
Prior to the pandemic, employees at companies large and small mainly worked on-site as the norm. Words like “hybrid schedule,” “telework,” or “fully remote” were uncommon.
Today, in a post-pandemic environment with many flexible and remote arrangements, smaller firms that embrace hybrid or remote roles can reduce expenses on things such as office supplies, commuter benefit programs, and break-room conveniences.
With more workers choosing to stay home, small businesses can also scale back on nonessential office items — think free snack bars or that high-end coffee machine that constantly needs repairs.
2. Shield Your Business with a Robust Insurance Package
A quick way to suffer a major financial hit is to lack adequate small business insurance — or to pay too much for it. With a comprehensive policy, like plans available through State Farm, you can safeguard your company against unexpected incidents and losses. You can tailor coverage to your needs (does your team drive for deliveries or transport items by hand? That’s coverage you’ll want!).
3. Hunt for Hidden Spending
Nearly every small enterprise could benefit from reviewing all its expenditures — chances are you’ll uncover charges you can reduce or eliminate entirely. Cutting company perks such as niche subscriptions that only a few staff members use can free up funds quickly.
Spot the minor changes — for instance, setting the office thermostat to 74 instead of 70 during peak summer — and they’ll accumulate into meaningful savings.
4. Investigate Credit Programs for Small Businesses
Exploring new lines of credit or banking programs geared toward smaller companies is always a prudent step for owners looking to cut costs. A small business might take advantage of newly offered credit options and possibly have portions of borrowing costs reduced by the lender.
Discussing programs with one or several banks that are designed to help businesses thrive in today’s economic climate is worth your time.
5. Swap Older Gear for Modern, Cloud-Based Solutions
Embracing updated technology may require adjustment, but it’s often a money-saving move. Providing staff with cloud-based phone services that integrate with email, for example, keeps teams connected while reducing the need for a traditional, full-featured phone system.
Wireless laptops and printers enable better connectivity and less technical upkeep. A reliable starting point is consulting with a knowledgeable tech or A.V. specialist who can guide you through the choices.
Find a local agent or click here to begin protecting your business today.
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