3 Money Saving Tips to Use During Inflation

During times of high inflation your business may be experiencing smaller profit margins and higher costs. This is normal but luckily, there are ways you can help ease the pressure and cut costs.

Check out our Business Buddy money saving tips below 👇🏼

Tip #1 - Re-evaluate your Vendors

Many businesses strategically select their service vendors at the startup of the company or during management changes. While these vendors may have been the best choice during the selection period, it is likely that the cost of their service has increased with inflation. This is why it is important to get a list of your business' vendors, evaluate service cost increases and search for potential vendor replacements. By doing this, you can identify areas where you can save money by switching vendors and reduce operating costs.

Tip #2 - Run Inflation-based Campaigns

During times of inflation, while other businesses are raising costs, stand out from the rest by running a campaign fighting these price increases. Although you may have a smaller profit margin temporarily, this tip can increase your user-base, make your business look more appealing in the eyes of new customers, and generate effective "word of mouth" advertising.

"Focus on your customer and lead your people as though their lives depend on your success." -Warren Buffett

Tip #3 - Implement Cost Saving Initiatives

Using principals like the 5 P's can ensure you are prepared for the future and protected from the side effects of inflation.

(Proper Planning Prevents Poor Performance)

There are many ways to "trim the fat" of your business. Small adjustments such as, limiting business travel or conducting remote meetings/events when possible, can save a business on unnecessary travel costs.

Larger adjustments, such as company wide budgeting and controlled hiring, create a safety net of funds that may be dispersed in higher priority areas where inflation may have a larger impact.

Community Outreach

Many businesses have felt the pressures and effects of inflation. Even though each business is unique, brainstorming with other minds can help find new solutions to fight inflation and save you money. Proper planning during times of inflation can lead to excessive growth during a healthy economy.

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