Realtor Tracy Madden provides you with insight on the amazing Treasure Coast area and helps you with all of your real estate needs. Team up with Tracy today by calling (484) 343-3856!
Image from Unsplash
It has been a tough few years for business owners. First, there was the COVID-19 pandemic to deal with and accompanying revenue losses. Now, the reality of high costs is settling in as inflation continues to rise according to the Pew Research Center. For many business owners, your operating costs could go up by up to 15-20%, which can negatively impact your bottom line. That being said, there are some steps you can take to make ends meet while dealing with inflation. Realtor Tracy Madden outlines a few here.
Utilize Accounting Software to Your Advantage
Accounting errors are the biggest reason for financial losses. Repeated errors in accounting can cost you down the line, which is not an option with the ongoing inflation crisis! Choose cloud accounting software for your business that is reliable and helps you make the most of your financial operations. The right software will make it easy to organize and store receipts to maximize your deductions while remaining compliant. You will also gain insight into cash flow to run your business more efficiently and smartly.
Keep Cash Reserves on Hand
Cash flow can be a significant problem in times of inflation. However, it is also necessary to have a healthy cash flow so you can pay for operating costs and vendor services. One of the best ways to optimize your cash flow is to ensure you get paid on time. While asking customers for payment can be sensitive, you can incentivize them to do so with early payment discounts or late payment penalties. In addition, have a different bank account for personal and business finances so that your expenses are organized and separated. If you have the extra cash to do so, now will also be an excellent time to start an emergency fund that will have you covered in the case of unexpected circumstances
Find Additional Funding
With the right strategy, a well-managed loan can provide the resources you need to combat inflation and ensure continued success for your company. Before deciding to take out a loan, it is important to consider your credit history. A good credit score is key when applying for loans, as it shows lenders that you are responsible with your finances and able to repay any debts on time. If your credit score is lower than you would like it to be, don't despair; there are steps you can take to improve it before applying for a business loan.
Invest in Automation and Technology
A big part of handling inflation like a pro is optimizing processes to make the most of what you have. Investing in automation and technology will increase current costs, yes. But, it will also help you save even more long-term. When you rescue costs by reducing redundant tasks and improving every employee’s value, you will see your bottom line begin to improve. You will thus see streamlined operations which help offset the effects of inflation. Some essential software to invest in for this purpose will be workflow and document processing software, barcoding systems for inventory control, and robotic process automation software.
Brush Up On Your Business Skills With Continuing Education
If continuing your education for your bachelor’s degree is something you’ve considered to advance your career or increase your earnings, now is a good time to do it. Taking college-level courses doesn’t have to be difficult or costly, especially if you choose to take online classes. Completing classes and tests online allows you to continue with your life and work schedule. And a degree in business will provide you with knowledge of the latest concepts in concepts like management, marketing and accounting, and you’ll get a working knowledge of the latest software. As you research your options for attending an accredited online college, this may help.
Find Low Cost Marketing Options
It is easy to spend a lot of money on marketing, but it doesn’t have to be that way. Social media platforms are free, and with a little research you can figure out how to strategically post at particular times and with specific types of content. You can also take advantage of free template platforms, like Canva, many of which allow you to schedule when your creation will post. There are free and inexpensive templates available for many things, including business cards and digital banners.
Stock Up on Supplies
With inflation soaring to new heights, hyperinflation may be near. Suppose you’re worried about affordability when prices go up even more. In that case, it might be prudent to stock up when prices are relatively low. This will ensure you have resources handy when you need them, instead of having to shut shop because of costs. You could stock up on office supplies or pay for a year’s worth of essential products, services, and subscriptions. Your emergency preparedness stockpile can make or break surviving the inflation successfully, as your costs will stay the same, but your revenue may go up.
According to a recent study by MetLife, inflation is one of the biggest challenges small businesses face. While over 40% of companies have reported a noticeable price increase in operations, hope is on the horizon. By taking preventative measures and watching the market for indications of respite, you can protect yourself against market conditions and survive the cost increase!
Inflation can cause challenges, but with some strategic planning you can find ways to outsmart the bubble. Look for free and low-cost tools and accounting software, invest your money where it will pay off, consider taking out a loan, and market your business to keep generating as much revenue as you can.
Commentaires