The word everyone hated to hear a year ago was “unprecedented” … today’s it’s “inflation.”  It’s our new centerpiece of conversation.  What can you do as a business owner to combat inflation while maintaining valuable relationships with your vendors, customers, and employees?

  1. Adjust workforce spending.
    • Leverage work-study, internship, and other opportunities.
    • Create training programs to capture talent you can develop within your organization.
    • Consider bonuses rather than salary or hourly increases which can be less costly in the long-term.
  2. Focus on revenue and productivity growth.
    • Consider raising the sales price of good or services after conducting a competitive analysis.
    • Improve the uniqueness of your offerings through enhancements or warranties.
    • Invest in your customer experience to better your selling process.
  3. Eliminate commercial real estate costs.
    • Mark-to-market study of your lease or broker opinion of value if you own the property.
    • Cost analysis to identify ways to reduce spending on property taxes, utilities, and other commercial real estate expenses.
    • Evaluate refinance, sale-leaseback, 1031 and other commercial strategies to capitalize on equity and extract cash.
  4. Decrease operational costs.
    • Increase your spending visibility and regularly compare your actual expenditures
    • Negotiate lower prices on everyday expenses. 
    • Explore incentives and discounts with your vendors.
  5. Accelerate Account Receivables.
    • Motivate your customers to pay quicker by providing incentives or discounts. 
    • If you’re still mailing invoices and taking payments by check, you’re missing out.  From Square to QuickBooks Online and more, it’s never been easier to automate accounts receivable.
    • Take deposits wherever possible against orders or future work.