Inflation is Hurting Small Businesses. 5 Super Easy Ways to Cut Costs and Stay Profitable
Inflation is hitting small businesses like a ton of bricks. In fact, data from the National Federation for Independent Businesses found that nearly 40% of small business owners say that inflation is their single most important problem in running their business.
But that certainly doesn’t mean you should close up shop — in fact, you can take some smart countermeasures to keep going in these tough times (and any tough times to come).
Small business owners can use these tips to soften the sting of inflation by reducing expenses and overall operating costs so they can stay profitable.
1. Embrace Remote Work
Before the pandemic, employees of companies both big and small mostly worked in the office as a regular practice. The terms “hybrid schedule,” “telework,” or “100% remote” were rarely heard.
Now, in a post-pandemic world that involves lots of remote and flexible work schedules, smaller companies that offer hybrid schedules or telework/remote positions can save money by cutting costs on things like office supplies, commuter benefits programs, and break-room amenities.
With more and more workers opting to stay home and work, smaller businesses can also cut costs on non-essential items around the office, like the “free” snacks and that fancy espresso machine that’s always on the fritz.
2. Protect Yourself with a Comprehensive Insurance Plan
One super fast way to be out a ton of money? Miss out on small business insurance — or overpay for it. With a comprehensive plan, like those offered at State Farm, you can confidently protect your business against unforeseen accidents and events. You can personalize a plan to include everything you need (does your staff drive or hand-deliver items? You’re going to want to cover that!).
3. Seek Out Hidden Expenses
Almost every small business could benefit from taking a closer look at all their expenses — chances are, you’ll find line items you can pare down or get rid of completely. Eliminating company perks such as niche subscriptions that few team members use or appreciate could save you cash quickly.
Find your small changes — like keeping the office at 74 instead of 70 during peak summer heat — and they’ll add up to big dollars.
4. Look Into Credit Programs Designed for Small Businesses
Inquiring about any new credit lines or new banking programs that benefit smaller businesses is always a smart move for owners to save costs. A small business can take advantage of any new credit line programs that are being offered and perhaps even have some credit expenses forgiven by the credit company.
Talking with a bank (or a few banks) about programs aimed at keeping your business up and running in today’s new economic landscape is never a bad idea.
5. Replace Older Equipment with Newer, Cloud-Based Tech
Leaning into new technology may take some adjusting, but it’s almost always a cost-saving tool. Offering employees a cloud-based phone service connected to their email, for example, keeps your team efficiently connected on-the-go and minimizes the need for a full-service telephone plan.
Wireless computers and printers allow for more interconnectivity and less tech maintenance. A great place to start is with a skilled tech or A.V. consultant, who can help you navigate the options.
Find a local agent or click here to start helping to safeguard your business today.
State Farm Fire and Casualty Company
State Farm General Insurance Company Bloomington, IL
State Farm Florida Insurance Company Winter Haven, FL
State Farm Lloyds Richardson, TX