How to Protect your Business and Combat the Inflation
Act smart and avoid inflation with these strategies that won’t put your business at risk
Since 1982, the United States has seen inflation as high as it is now. According to CNBC, inflation rose 7.5% in January 2022, the highest rate in 40 years.
This has taken its toll, especially on the consumer price index, and small business owners have been the most affected market affected by the impact of rising prices.
Faced with this situation, many small businesses have been forced to raise their prices or compromise their benefits to their customers, putting the loyalty of their clients at risk and sacrificing their financial capabilities in order to survive.
But there are certain key factors that can help minimize the negative effects of inflation. Let’s take a look at what you can do to deal with this current situation:
Keep a strong inventory and stock on dry cleaning supplies
There is a saying that says “forewarned is forearmed”, meaning if you think ahead of the problem, you might have a tactical advantage on your side. Don’t wait to run out of supplies or for the prices to rise, purchase items in advance to avoid the hefty prices that might come in the near future. Handling the business expenses effectively is a great way to manage inflation.
Adjust to the situation
In the face of sudden inflation, the first option is to increase prices. But if you have a business like a dry cleaner (and not a food company, for example), it’s possible to make a strategic decision and evaluate which services you will make a price change to, and avoid a traumatic impact on your customer’s budget.
Inflation requires adaptation and meeting these challenges with agility will be beneficial in the long term.
Invest wisely
Saving the money under the mattress is actually one of the biggest mistakes you can make when it comes to personal finances at a time of high inflationary pressure like 2022, where money loses its value faster than the speed of light.
What is recommended is to invest in things that offer a higher return than the current inflation rate or, at least, that accompany it, such as shares of listed companies.
ALSO READ > GET THE BEST PAYMENT INTEGRATIONS WITH ENLITE POS
Think about long-term agreements with your business partners
Opting for a settlement with your business associates is an effective way to protect your dry cleaner from inflation. Ask for a long-term agreement with your supplier, or negotiate with other parties for bulk discounts. This way, you will have a clearer picture of your fixed expenses, allowing you to plan and strategize during critical periods.
Take care of your current employees
Employee retention comes in handy when it comes to avoiding inflation: lose valuable employees and you won’t be able to meet your customer’s demands. So make the necessary efforts to keep the good ones on your side, offering better employee benefits, and flexible working practices.
Reduce business expenses
Evaluate your variable expenses and make a list of what could be reduced without damaging customer services, your employees’ wellbeing, or the quality of your service. Consider moving your store to a cheaper location, cutting down some marketing channels, or canceling business subscriptions that are not a necessity for your dry cleaner.
Economic challenging times can be surpassed if you plan ahead and think strategically. Go for practical ways to overcome it: review your expenses, evaluate your processes, and update and reinvent where it needs it. Take action and act smart to help your company deal with inflation in the longer run.
See features, tools, and more.
Sales US: +1 404-996-0336 | Sales UK +44 330 808 1881
This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.
AcceptWe may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.
Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.
We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.
We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.
We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.
Google Webfont Settings:
Google Map Settings:
Google reCaptcha Settings:
Vimeo and Youtube video embeds:
You can read about our cookies and privacy settings in detail on our Privacy Policy Page.
Privacy Policy