Inflation continues to dominate headlines and impact everyone’s wallets, from consumers to business owners. Customers may be watching their spending and cutting back in areas where they were purchasing before, affecting businesses of all types.
While inflation rates may eventually slow, businesses need to implement strategies that allow them to remain in operation without driving away customers. Here are three ways to achieve this balance and keep your books “in the black.”
- Pay close attention to productivity and identify ways to automate processes to save money and increase effectiveness. Something as simple as automating invoicing through your bank saves time that could be focused on serving customers.
- Take a close look at all of your expenses, including your subscriptions and service contracts. This isn’t just a personal finance strategy. Your service providers such as telecom or merchant services are feeling the effects of inflation too and there might be lower-priced contracts out there.
- Revisit your pricing strategies. Calculate the current cost to provide your product or service, adding in variable and fixed costs and a fair profit margin, to create new pricing. Research your competitors’ pricing as well to ensure you are at market value and don’t set rates too high, which could unintentionally cause loss of business.
Finally, keep your bank in mind when evaluating how to cut costs during leaner times. Not only should you review your accounts to ensure you’re paying reasonable costs, but a bank relationship manager can provide market intelligence and help make connections to inform better decisions.