Post-pandemic, we’re all beginning to feel the pinch when it comes to our money, none more so than small businesses. Inflation is having a negative effect on these smaller establishments, and many are having to make changes to stay afloat.
There are ways that businesses can keep on top of inflation from investing in growth to applying for a merchant cash advance to help with cash flow. Read on to find out more on how to manage rising costs.
Why is Inflation Happening?
Inflation is happening constantly within the economy but it’s only recently that we’ve been hit harder by the effects. The inflation that we’re experiencing currently means that almost everything that we pay for in our day-to-day lives has increased somewhat, whether that’s petrol prices, energy prices, or the cost of your weekly shop.
The rise in prices that we’re experiencing is mostly due to the pandemic and the economic recovery as a result. Supply and demand also have an impact on the price of goods and services, for example, if a product in demand is harder to get, the price tends to go up. Prices also tend to rise if there has been an increase in production costs.
Inflation this year is hard to ignore and is having a knock-on effect on small businesses around the country. Below, we’ll look at some of the ways that inflation can impact a small business, as well as ways to manage it.
Inflation makes the price of almost everything rise, whether that’s goods or services. When running a business, there are many costs that you may notice increasing in price, from the energy that you use on-premises to your internet provider increasing monthly payments or if you work in hospitality, you might’ve noticed the price of various ingredients and stock increasing too.
During this time, small businesses should expect higher costs for the products and services they need to run their business efficiently. This brings us to the next point…
In line with cost increases, small businesses are having to increase their own prices to manage this. The cost increases that businesses are incurring from suppliers have a knock-on effect and means that to make the same amount of profit, they must increase the price of the product or service that they offer to their customers. This can be risky as regular, loyal customers may notice the price increase and struggle to accept it. However, to survive as a small business in such a time of high inflation, changes may have to be made to stay afloat.
Inflation makes it harder for small businesses to make a profit. As mentioned previously, businesses will have to increase the price of their products to cover their costs. Even if businesses do this, they can only increase the price by a small amount – too much and you end up losing customers! This makes it more difficult for these small businesses to make a profit, and in turn, makes it harder for their business to remain successful.
How to Manage Inflation
There are ways that we can manage inflation and the impact it has on small businesses. Having a plan to help cope with this means we can minimise the damage, and give your business the best chance of survival, and even success.
The levels of inflation that we’re seeing currently will eventually level off but for now, there are three main options that businesses can consider.
1. Stay small
If you’re not ready to grow your business, or understandably you’re worried to do so with the way inflation is currently, you must commit to cost-cutting and reductions. For example, to keep up with inflation, cutting overhead costs, as well as spending means you can save and improve your cash flow – with that, you can invest in marketing to help drive sales.
You could also invest the money you have inside and outside of the business so that you can keep up with inflation and give your business the chance to stay afloat.
The other option is to grow your business. The idea behind this is that if you commit to growth, you can generate enough profit to keep on top of inflation. Investing in your business means that you can improve it for the better, for example, investing in marketing to reach more of your target audience and gain new customers, or investing in technology that results in higher productivity.
Growing alongside inflation gives you the chance to keep your head above water and make your business a success.
This is another option that small businesses have in times of need. If you find that you are struggling to manage your overheads, there are many loans that you could choose from to free up some cash flow – whether that’s a short-term loan for an emergency payment or a merchant cash advance for funds quickly and easily.
If you’re looking to grow in line with inflation, a traditional bank loan or equipment loan could be advantageous to use to invest back into your business, improve productivity or make improvements.
Essential Legal Documents You Need for Your Small Business
Entrepreneurs from Mississauga to Montreal put all of their effort and attention into growing a business, making it important to protect what has been built. If you don’t have the right standard legal documents for your business, you could be leaving yourself open for litigation that could cost you everything.
As a business owner, you are an expert in your field but that doesn’t mean that you know how to protect yourself and your business from a legal standpoint. It’s crucial that you have the minimum of legal documents prepared for your company to make sure that you are protected from lawsuits.
You can work with business lawyers in Mississauga, On, or print off some legal templates that are available online to protect your interests at a minimum. Let’s take a closer look at a few of the essential legal documents that you need for your small business.
To help solidify trust and cooperation in your business, it’s important to have an owner’s agreement in place. With the right amendments in place, you minimize disagreements and can work towards common goals. Your ownership agreement should clearly outline the roles and responsibilities of each of the partners including decision-making power. Your agreement should include a specified breakdown of your equity ownership agreement, and assignment of your intellectual property to the business and not the partners.
Independent Contractor Agreement
When operating your small business, it can be cost-effective to bring in independent contractors to do certain work. Your independent contractor agreement should be in place to specifically designate that your workers are responsible for paying their own taxes and they are not part of your payroll or in your direct employment.
One of the most important aspects of a successful business is ensuring that you can supply your products quickly to customers. A vendor agreement for your suppliers will provide the terms and conditions under which they will deliver the goods that you need on time.
Before you allow any vendors, contractors, or employees into the heart of your business operations, you need to have them sign a non-disclosure agreement. This ensures that outsiders will not be able to disclose any confidential information about your business. Your agreement should clearly outline what is considered to be confidential information, specific information formats, how confidential information should be handled, and a statute of limitations.
ovinces and states require that companies create a set of governing bylaws. Within your bylaws, you should clearly outline how your business will be structured, dispute resolution, hiring practices, and powers of shareholders.
While it may not be legally mandated in your area to keep a copy of any executive meeting minutes, it’s still a good idea to keep this type of documentation. Meeting minutes that record everything that is said in major meetings is an excellent company resource for information to resolve potential disputes.
If you are starting a new business, it’s recommended that you have these essential legal documents ready to ensure that you and your venture are protected.
How to Optimize Your CRM for Winning More Customers
A CRM, or Customer Relationship Management tool, is an all-embracing software solution used to manage relationships and interactions with partners, potential customers, and existing customers. CRM solutions like crm.com.au is a useful tool that can streamline the operations and functions of teams in different departments of an organization, like business development, marketing, or sales. All the important information required for the company, like client data, leads, sales opportunities, and marketing campaigns, can be stored and managed centrally with the help of CRM.
Optimizing CRM adds enormous value to the business process. It will enable businesses to strengthen their client relationships, simplify processes, and improve sales and profits.
There are several ways to optimize your CRM to win more customers. Some of them include as follow.
Automate The Basic and Straightforward Tasks
Automating daily and repetitive tasks is an important step toward improving the efficiency of your business processes. Many businesses mention a shortage of resources and time as the reason for not automating such repetitive tasks. But this is a real mistake business owners are making in this digital age.
Automation helps businesses improve customer traction. It also gives companies the capability to inspect the intricate journey towards real customer-centricity. This process might feel a bit overwhelming for budding businesses with limited experience in CRM.
CRM automation can be used to eliminate repetitive and time-consuming functions like sending newsletter subscriptions, promotion offers, follow-up emails, and other marketing efforts. This will reduce the need to write the same response repeatedly while engaging customers. It is also possible to automate sales processes like call scheduling. All of this will save precious time for team members that can be diverted to more crucial tasks, increasing productivity and boosting business growth.
Understand from Analytics
Another important feature of CRM that makes it attractive is its ability to analyze consumer behavior and trends. Not only does CRM perform the analytics, but all the data is stored in one place, making it easily accessible. This will enable companies to easily access and understand the behavior of clients and push the products and services to suit those trends.
When one marketing strategy becomes successful, businesses should analyze the reason for its success and model the next campaign similar to it.
Having a better understanding of CRM analytics will help companies and their different managerial teams come up with the best marketing strategies and solutions. All the marketing and sales strategies should be designed based on client data to yield maximum results. When the sales team is aware of the location and inclination of the customer, the salesperson can come up with novel strategies to make a targeted sales pitch. It will also improve the chances of getting a good deal. Thus, carefully learning and understanding analytics is crucial for the growth of a company.
Establish and Maintain The Portfolio of Profitable Customers
CRM helps to collect and organize all the client data in one place. The advantage of this feature is that it will enable teams and customer service agents to access how a particular issue or client was handled in a previous similar scenario. This will help the agents communicate effectively in the said scenario and provide consistent customer service by predicting the wishes of clients based on previous responses.
CRM can be used efficiently for helping agents deal with new customers or specific interactions. Specific guidelines or playbooks can be created based on earlier interactions. This will allow the customers to have an idea about what to expect, and they will be happier with the service provided.
You can also prioritize the queries and issues of the most profitable customers and get them handled by the right agent. This does not mean you should delay the issues of other customers. The issues requiring urgent attention should be prioritized above everything else.
Make CRM The Core of your Company’s Marketing Strategy
It is beneficial for businesses to develop their marketing strategies and campaigns based on CRM intelligence. CRM intelligence provides critical insights into marketing, like the best technique to approach a specific market or the most successful tactic for a particular service. All of these crucial insights will assist businesses in developing campaigns that will result in agile and tactile business practices and corresponding business growth.
Long-lasting relationships can be made with customers when you give them what they want and approach them the way they desire. CRM will assist you in determining the most interactive and emerging market, the most desired products and services, and the channel receiving the most traffic.
Integrate CRM With Other Tools
Once you invest in CRM, you should remember to integrate it with other tools and internal systems used in your business processes. CRM can be integrated with enterprise resource planning systems (ERPs) to create an automated inquiry management system that is fully developed and includes all client information.
For social media listening, your CRM should also be connected to all social media accounts of your company, like LinkedIn, Twitter, or Facebook. This will keep you up to date on important topics like emerging trends, the reputation of your brand, and the impact of your marketing campaigns. All this information can be used to create better strategies for your next marketing campaign.
Update Customer Data
CRM is most effective when the data is up-to-date. Your marketing and sales strategy will only be effective if it is developed using the latest client data, like changes in preferences, location, or contact method. By designing strategies based on the changing needs and desires of the customer, your relationship with them will continuously evolve and become stronger.
CRM is like the real face of your company or support team. This system plays a great role in shaping the opinion of the customer about your company. You should use CRM to create a positive and lifelong impact on your customers. Remember to meet the expectations of your clients and provide a cohesive and consistent service. Also, give focus on providing a seamless customer experience.
CRM is an invaluable tool that can be used for the overall development of the business. By properly optimizing it, you can get more customers and generate higher profits.
Solo Traveler to Solo Entrepreneur
I became a solo traveler to a solo entrepreneur through my love for travel.
I started traveling around 10 years ago and lived to explore the world. I was constantly trying to find packaged adventures that offered to explore off-the-beaten-path corners of the earth, but was unable to find anything. I became tired of the cookie cutter tour companies that only highlighted the touristy attractions and popular regions. Eventually, I gave up trying and decided to create my own trips. I figured if I was looking for adventures like this, then other travelers would too.
photo credit: BornWild
After 4 years of traveling solo, I combined my passion for travel and wild animal conservation and decided to start my own adventure travel company – BornWild.
I began selling unique day trips for the first two years of business which went relatively well, however profits were low. To succeed at making a business out of day trips alone, you would have to be selling the majority of weekdays and dedicate much labor to make an honest living.
Multi-day trips is where the vast majority of profit can be made so I focused into this sector and it has really paid off.
Entering into the adventure travel industry world is no easy task. If you are a solo entrepreneur that has a travel start-up, you have your work cut out.
What I found most challenging is that consumers are parting with much more money and tend to be very careful before purchasing. It takes someone a lot more thinking time and deliberation before buying a trip, than it does to buy an item of clothing for example. Selling travel requires trust built between consumer and business and it’s essential for the business to have a great reputation too.
The travel industry isn’t overcrowded but there is a lot of choice so it requires work and the right marketing techniques to be seen by the right buyers.
Having a socially conscious angle on your business also helps too. From a business perspective, travelers are becoming more proactive in traveling consciously and impacting the planet positively. Consumers are gravitating towards eco-friendly, sustainable and conservation based trips and adventures. It’s a preference that has become highly favored in today’s world.
Being socially committed not only gives your brand kudos and credibility but it helps people see how dedicated you are to doing good.
We have just devised an African Lion Safari which is a groundbreaking adventure that bridges adventure travel with lion conservation. It exposes travelers to resources and experiences you will only encounter through this adventure. It’s the only adventure like this on the market and sets us apart from other companies.
photo credit: Roya Ann Miller / BornWild
Digital marketing is key when getting your business off the ground. I taught myself how to become a digital marketing expert and it’s paid off in many ways. I have tried numerous marketing tactics when it comes to selling travel, from magazine articles to ads, to cross marketing, to social media, facebook live etc. I’ve found that the most effective way is to master the world of SEO so that you can start ranking on google and be visible when consumers are searching for an adventure. The goal is to capture people as they are ready to buy a trip and that’s what’s so powerful when you crack digital marketing.
My advice to all new entrepreneurs in travel is to learn to master SEO and become a digital marketing expert so you become a pro at the very beginning. This will set you up for success from the offset and be extremely beneficial to getting your business off the ground as well as throughout your whole business journey.
Tips on starting your own travel business:
- Find a niche that isn’t already being done
- Become a digital marketing expert
- Post, post, post to rank on google using SEO
- Concentrate in on where your buyers are coming from
- Pinpoint what search terms consumers are using when they are poised to buy and start ranking for these search terms.
- Don’t waste time on marketing avenues that don’t work, plug away at avenues that do.
- Cross marketing with other companies really helps
- Make sure your customer service is 5-star and that you gain great reviews
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