5 Ways Small Business Owners Can Fight Inflation

Over the past two years, small businesses have faced many challenging obstacles — supply shortages, price increases and stock prices dropping, to name a few. According to the Bureau of Labor Statistics, the all-items index rose 7 percent throughout 2021, which is the highest increase in 40 years. And although inflation and supply chain issues can threaten a small business, there are ways business owners can fight to protect their profits.

Patch understands the critical role your business plays in your community — that’s why we’re making it our mission to provide you with the top business-centric tips, resources and guides around to assist you in navigating any challenges thrown your way.

Here are five helpful strategies to help small-business owners combat inflation:

1. Raise prices judiciously. Although raising your prices isn’t ideal, it may be necessary in combating inflation. This can help maintain cash flow and stay profitable when inflation is high. However, raising prices across the board isn’t always the best option. Instead, start with your most desirable offering, increase prices slowly in modest increments, and be strategic. (American Express)

2. Evaluate your supply chain risk. Managing supply chain risk is key to a successful business. Be sure to avoid vulnerabilities such as single supplier dependencies, long-lead-time suppliers, materials that are difficult and expensive to store, and more. Instead, establish alternate supply chains and an expedited supply strategy, consider stockpiling critical supplies, and more. (CFO Share)

3. Reduce inventory and costs. Another way to combat inflation is to reduce the size of your business’s overhead costs and variable expenses. Review your expenses and determine the value each brings to your operation. For some businesses, reducing inventory may make sense. For others, moving your business to a more affordable location or reducing marketing costs can help ease your burden. (Business.org)

4. Automate workflow. With labor shortages and rising labor costs, many businesses are eliminating unnecessary work and automating. Technologies such as robotic process automation (RPA), workflow and intelligent document processing can free up workers and make each person much more effective at creating value. (Harvard Business Review)

5. Apply for a business loan. The age-old saying is, “You have to spend money to make money.” This rings true if you need more capital to keep up with customer demand. Almost half (45 percent) of business owners surveyed in the Small Business Index have taken out a loan in the past year to deal with inflation. However, to ensure you can responsibly pay off your loan, it’s crucial to use your funds to invest back into your business. (Funding Circle)

Enlist The Help Of Patch’s Marketing Experts

In addition to the helpful strategies listed above, marketing your business is a great way to get customers in the door — and put money in your pockets. Fortunately, Patch offers a plethora of options that will put you directly on your customers' radar.

Here are some ways that Patch's local marketing experts can guide you in creating stronger customer relationships and boosting your success:

• Increase your brand awareness with Patch's advanced digital targeting network, which can reach local audiences not just on Patch but also on other highly trafficked sites.
• Build your local fan base and help customers get to know you on a more personal level through Patch Spotlights — our profiles of local business leaders and owners that appear on Patch.
• Post your business news and updates on Patch as a Community Partner and get your content in front of nearby audiences.
• Get personalized help from a Patch Client Success Manager, who sets up ad launches, coordinates content, troubleshoots any issues and provides you with a monthly report on your ads.

To learn about how Patch can help your business succeed, click here, call 888-691-8988 or email ads@patch.com.