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How Business Owners are Fighting Inflation

Millennial Magazine- business owners

Is your business doing everything it can to fight the recent surge of inflation? Companies in all industries are scrambling to develop effective strategies for cutting costs, making changes, downsizing departments, and keeping inflation at bay.

There’s no one-size-fits-all technique, which means business owners have to think outside the box and create strategies that work for their companies. Downsizing is probably the most common tactic, and can do a good job of reducing expenses and staving off the ravages of high prices.

Additionally, companies in the transport industry, for instance, are discovering that fleet management software can be a savior when the economy begins to turn sour. A few other ways entrepreneurs are engaging the battle include creating more focused promotional campaigns, updating inventory policies to reduce carrying costs, and opting to establish virtual offices to save big on rent and lease expenses.

No single approach works best, but here are details about some of the most popular techniques that today’s owners are using to deal with rising costs.

Downsizing

When you are dealing with financial hardships downsizing a common solution. There’s a large spectrum of action within the downsizing category. Some businesses choose to move to smaller offices while others eliminate non-profitable product lines.

In some cases, and usually as a last resort, managers lay off workers to slash payroll expenses. There’s even a no new products trend among manufacturers that aims to keep expenses to a minimum by not introducing any new goods or services.

Fleet Management Programs

Transport companies are lucky in a way. They can leverage the power of sophisticated fleet management programs to keep costs as low as possible. Most of the top products in this category offer a vast menu of functions like GPS tracking, vehicle telematics, and tachograph capabilities to maximize the amount of useful data for managers.

Fleet management, as a stand-alone discipline, is at the forefront of today’s transport industry. Large and small firms use software and various applications to make sure deliveries are on time, drivers are safe, vehicles get prompt service when needed, cargo is protected while in transit, and more.

Focused Advertising

Ad budgets are a sore point for managers who believe the money could be spent better elsewhere. One way to pare down promotional expenses is to hone in on just one or two core client demographics. This is a short-term solution for sure, but it’s a wise way to maintain an advertising presence in the minds of your main clients and stay profitable during challenging times.

Updating Inventory Policies

Inventory policy is often overlooked by owners who are aiming to cut costs and fight inflation. But simple changes in the timing of purchases can go a long way toward saving money. Many manufacturing firms have switched to a just-in-time inventory strategy to keep storage and insurance costs as low as possible.

Other organizations have discovered that buying supplies in bulk is an effective technique for avoiding price hikes.

Going Virtual

Telecommuting is catching on for a number of reasons. At first, the big push was related to the COVID pandemic. Now, it’s about corporate owners who want to minimize rental expenses on office complexes. Businesses of all sizes and in almost every industry are choosing to transition to full-scale telecommuting to battle inflation.

What do you think?

Written by Sylvia Hysen

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