Fighting Inflation in Your Business

According to a report from MetLife and the U.S. Chamber of Commerce, at the end of March 2022, small business owners feel good about the health of their businesses, while at the same time 85% are concerned about inflation.  Closely following inflation these owners are also troubled about ongoing supply chain disruptions, persistent COVID challenges, and worker shortages.

While there's little you can do to control supply chain issues, COVID, or worker shortages, you can address inflation in your business.  Here are 6 ways to handle inflation and improve your bottom line:
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1. Analyze your business' profitability
2. Maximize line synergy
3. Prepare for new customers
4. Cut expenses
5. Automate processes
6. Improve productivity

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1. Analyze your business' profitability

• Take a close look at the lines you represent​
  • are they rep friendly (do they understand & know how to work with reps)
  • do they walk their talk (do they do what they say they'll do - for you & your customers)
  • do they generate a good ROI (ratio of earnings to time spent in sales & support)
  • do they pay commissions in a timely manner
  • does the line create opportunities to sell your other lines
  • do they provide necessary marketing and sales materials
• Take a close look at your customers​
  • ​do they consider you a resource
  • do you have access to all the decision makers
  • how many lines do they buy from you
  • do they pay their bills
  • do they generate a good ROI (ratio of earnings to time spent in sales & support)

2. Maximize line synergy

• Focus on creating awareness with customers of your complementary lines​
• Set goals/rewards for adding lines to current customers

3. Prepare for new customers (be ready to come to the rescue if the opportunity presents itself)

• ​Know your customers
  • create lists of their vendors
• Know your competitors
  • what issues are they having (delivery, quality)

4. Cut expenses

• Consider hybrid office models to lower or eliminate office costs
• Look for gas discount programs - reward programs or rebate apps
• Investigate video conferencing programs - which ones work best:
  • as an alternative to in-person sales calls
  • for customer service issues
  • for training

5. Automate processes

• Look for ways to cut time-intensive processes and streamline workflow
  • manually entering orders/invoices/commissions
  • manually updating products and pricing
  • manually creating reports to manufacturers
  • manually creating quotes
  • manually creating marketing mailings

6. Improve productivity

• Make use of technologies to increase productivity & efficiencies
• Establish methods to improve collaboration between inside and outside teams
• Rethink employee tasks (with the time savings created through automation and improved productivity) 

​Now is the time to pay close attention to your business' revenue and expenses.  Taking the time to analyze the best ways to increase revenue and cut expenses will highlight important insights to help you fight inflation and 
provide a significant return on investment (ROI) for your business.