It has been a rough few years for small business across the country. After battling two years of Covid-19 restrictions and lockdowns, businesses now face an increase in prices across the board, leaving both business and consumer confidence a little shaky.

27 July 2022

However, unlike the pandemic where we really were in unchartered waters, inflation is an ocean that has been traversed before, and will be again.

As a business owner and leader, here are our four tips to help you navigate this unsettling time and set yourself up for success.

1 - Do you have a plan A, B and C?

When a business is a period of inflation you need to be agile and adapt to the unexpected changes. Planning and flexibility is paramount, but how do you do this in a business setting?

Create “what if” scenario’s using financial forecasts and analyse the effects of high inflation. These scenarios could include an increase in wages, prices on raw materials or disruption of supply chains. These scenarios should reach past pure financial simulations and incorporate workforce planning and demand and should pose certain questions, pertaining to cashflow, preventative measures and mitigating actions.

This careful planning should identify a range of outcomes and risk factors and is key for agility within your business.

2 - Four C’s

During a period of inflation, your pricing strategy becomes crucial. As operational costs rise and margins shrink, it becomes increasingly tempting to raise your prices. This short-term solution can have long-term ramifications if the wider market is not considered, as you risk losing customers that either aren’t willing or can’t shoulder the burden.

Your pricing strategy should instead focus on the four C’s: customers, costs, competitors, and cash.

How important is price to your customers? Do they value the quality of product, or is the price the deciding factor? Is your labor and suppliers becoming more of a cost? Has your competition increased their prices? If so you may be able to increase your market share.

3 - Simplify

Simplify supply chains and minimize cost. Rather than devoting resources to niche products, focus on customer favorites with high margin and consistent demand. Reducing your offering like this can seem to be anti-growth and counterproductive, however it is a tactic regularly used by some of the big companies in fast moving consumer goods during times of inflation and uncertainty.

Start by examining product data and be critical & honest. Focus on what works and put niche or new challenge products on the shelf for another day.

4 - Automation

Do you have that automation project that was discussed prior to the COVID-19 pandemic but has been gathering dust ever since? Well now might be the time to bust it out. Why? Because not only is inflation increasing prices, there is an ongoing skills shortage which is in turn pushing up salaries and benefit costs.

Automation has the double effect of reducing workload and speeding up workflow, which frees up staff to add more value in more important areas of your business. It’s all about productivity.

Get in touch

Over the last few decades we’ve enjoyed historically low and stable rates of inflation. While of course that is now changing, we’ve been here before and can learn from people who have been there before. Gunderson Briggs was founded in 2009, towards the end of the global financial crisis and can assist your business.

Should you have any questions or queries, or would like to know how Gunderson Briggs can help you and your business, please do not hesitate to get in touch below.