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5 Tips Any Small Business Can Use To Fight Inflation
The pain of inflation is real.
Margins are squeezed because as gross profit remains consistent, costs are rising. In my business, I’ve seen a tremendous increase in material prices. For example, a brake for a Boeing 737 cost $15,000 a couple of years ago. Today it’s north of $30,000. There are many reasons for this, and every industry is different, but we’ve had to adjust.
You’ll see all over the web people blaming corporations and the government for hundreds of different things. Are they to blame? Maybe, but each person and company has its own response-ability. You can make adjustments to minimize the impact of challenging situations.
These are five tips I’m using to reduce my small business costs without torpedoing the company:
1/ Reduce Waste
Look for areas in your business that are leaking waste. This can be inventory, processes, and people. Make lean thinking a company core value.
2/ Cancel Subscriptions
If you’re not using something regularly, cancel it. We’re canceling wasteful SaaS, printer leases, and other unnecessary subscriptions that, over time, we got complacent with.
