It’s no secret that inflation is a major pain in the wallet!

It has been a hot topic on the news for decades. And with every new year it brings so many surprises adding to our fear for a good lifestyle let alone affording the luxuries. When businesses are considered these concerns enhance exponentially because inflation has led to many business failures. But how to weather inflation to achieve success? We know this question might ringing bells in your head after reading the introductory passage.

Don’t worry!

With this article, we will teach you practical ways to effectively curtail inflation as a small business marketing that how you can take your firm to heights you had only imagined.

Let’s begin with a no brainer.

What is Inflation?

Our grandparents and parents used to talk about how much they were able to buy with $1 compared to this time. Well, that’s inflation!

From investopedia, the term inflation refers to the decreasing purchase power of a currency over time.

According to the U.S. Bureau of Labor Statistics (BLS), the current inflation rate was up 7.5 percent in the 12-month period ending January 2022. This is the most significant 12-month rise since June 1982!

How does Inflation Affect Small Businesses?

Inflation is not the problem, quick inflation is. This statement implies that when rigourous inflation occurs it becomes challenging for business to adjust their operations according to it. They get affect in many ways including:

  • Increased cost of raw material.
  • Decreased profits
  • Reduced sales
  • Supply shortages
  • Damaged brand image.

Let’s now find out ways to deal with inflation as a small business.

5 Effective Ways to Fight Inflation as a Small Business

Streamline and Automate Business Operations

This strategy helps you focus on what matters most: growing your business. When we talk about streamlining here, we are talking about automating your processes but not just any old automation. We are talking about automating those processes that will help your company thrive in this new economic climate and keep pace with inflation. Here are some ways:

  • Use robots to do repetitive tasks so that you don’t have to hire as many people, which will save money in payroll costs and other expenses like training new employees or paying for employee benefits like health insurance premiums.
  • Look for ways to reduce administration costs by outsourcing one or more core functions of your business (like customer service or accounting) through a virtual assistant service or outsourcing partner company.

Target the Right Audience

Marketing your products to the right crowd can help you weather the storm of inflation as a small business.

And by right crowd we mean the people who will be able to afford them in the long run. You can do this by targeting your audience based on demographics like age range and income level. The older people are likely to be able to afford things like homes and cars even if they are getting cheaper every year, so if you want your product or service aimed at older people then maybe try advertising it as something that someone over 30 would need.

Tips for Marketing your Products

Here are a few tips for marketing your products to the right audience:

  1. Know your target audience.
  2. Figure out what they need and want from your product.
  3. Create content that helps them find their answers (and maybe even gives them some insight into your brand).
  4. Don’t be afraid to experiment with different types of content (video, infographics, etc.).

Reduce Expenses

In times of extreme inflation, it’s important to make sure that you keep your costs down so that you can weather the storm. If you have a small business, you already know that keeping expenses low and managing cash flow are essential for survival. But what if the economy took a nosedive? How would you survive?  Well, there are some simple steps you can take to reduce expenses and manage cashflow in times of extreme inflation:

  • Cut down on unnecessary spending
  • Avoid buying things on credit cards
  • Make sure you’re up-to-date on your taxes
  • Consider reducing or eliminating benefits like health insurance or 401k plans.

Increase Prices Strategically

When you raise prices, people do what they should do: They adapt their behavior to the new situation. They buy less of what they need, or buy fewer products at once, or use fewer resources in their daily lives. It’s a win-win for everyone involved because nobody has to waste time and energy figuring out how to survive when there’s too much food or too many clothes or whatever else people are used to having on hand. That’s why we say: Raise prices strategically!

However when you increase prices, please make an official statemnet on the social media sites and let people know how after year of low price strategy, it has become unavoidable for you to continue it.

Finally, Identify what-if scenarios

Making alternative plans and creating what-if scenarios can be part of reacting to the ambiguity that appears during economic changes. Once you have started creating these instances, you can make adjustments goals and milestones based on how you anticipate things will change. By using all these strategies you can take fight inflation and your business will definitely reach the seventh sky.