If you bought an item for 50 Naira today, there’s a good chance that the next time you go to buy that same item, it will be sold for 100 Naira or even more. That is the situation Nigeria is in right now. Inflation is affecting everyone, and small business owners are not exempted.
According to a QuickBooks survey, 99% of small business owners have stated that inflation is a source of concern for their businesses.
The ideal solution to inflation would be for prices to go down, but since prices continue to rise, small business owners need to adopt strategies that will lessen the impact of inflation on their businesses.
In this article, I’ve provided strategies to help you combat the ongoing inflation as a small business owner, so you can ensure that your hard work doesn’t go down the drain due to rising costs.
Five Strategies to Combat Inflation
Embrace Cost Effective Digital Marketing for Better ROI
We are in the digital age, where using marketing channels like social media, email marketing, and content marketing is cheaper and more effective than traditional methods like print or TV ads.
As a small business owner, you can reach a larger audience without a significant increase in marketing expenses simply by putting your business online.
Review Your Expenses and Cut Unnecessary or Underperforming Costs
There are some expenses that add little to no value to your business. To survive inflation, you need to identify these expenses and cut them. This way, you can save more money and lessen the impact of inflation on your business.
Consider Small Increases in Pricing
One of the primary effects of inflation is higher costs. As a small business owner, selling your goods at the same price when costs are rising is the quickest way to lose your business.
While it’s not advisable to make significant price increases, as that might drive customers away, you can make small price changes periodically to keep up with rising costs. This approach helps retain both your customers and your business.
Introduce New Products or Services
For example, if you introduce a new product, such as shoes that complement an existing one, like bags, you can bundle them together.
This encourages customers to spend more, helping you earn additional revenue and protecting your business from the harsh effects of inflation.
Strengthen Customer Relationships
No business can survive without customers. If your customers are loyal to you, they are more likely to continue buying from you even when you increase your prices.
So how do you achieve customer loyalty?
Through exceptional customer service. The better your customer service, the better the chances that they will become repeat customers.
Also, satisfied customers can bring in more business by referring your products or services to others, thereby, bringing in more customers and sales for your business.
The current inflation in Nigeria has forced many small businesses to close. However, even in the face of inflation, your small business can still survive, especially if you implement the right strategies and continuously look for ways to improve your business.
