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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Analyze your business' profitability
Maximize line synergy
Prepare for new customers
Cut expenses
Automate processes
Improve productivity
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.