Ways to Tighten Your Belt Without Harming Business
Inflation is a normal part of business we have all come to expect now and again. Unfortunately, there are times when inflation can actually threaten the bottom line. With January 2022 producer inflation getting dangerously close to triple digits, it looks like we could be headed in that direction. That means businesses have to tighten their belts for the time being.
Tightening the belt is never a pleasant experience. It can be tricky to cut back in ways that keep the business healthy rather than harming it. While we are no experts in the field, we do have some suggestions. As you read them, always remember that customers are the foundation of your livelihood. In whichever way you decide to tighten the belt, make a commitment to take care of them.
Recycle and Reuse
One of the first things company should look at in a belt-tightening scenario is waste. By its very definition, waste costs companies a certain amount of capital that is not recoverable. As such, it is always a good idea to reduce waste by recycling and reusing. In times of inflationary pressure, recycling and reusing becomes so much more important.
If your company produces any industrial plastic, now is a good time to recycle it rather than sending it to the landfill. If you operate in any of the following states, contact us to inquire whether we can take the plastic waste off your hands:
Not only does letting us have your plastic waste keep it out of the landfill, but it also represents an opportunity for your company to turn a former landfill material into some extra cash. If your plastic waste is something we need, we will buy it from you.
Temporarily Reduce the Perks
Unfortunately, tightening the belt often means reducing some of the perks you offer your team. It is uncomfortable for sure, but temporarily reducing the perks is better than the alternative: layoffs and furloughs. It might be wise to reduce the perks judiciously so that you are not eliminating all of them. Leave one or two intact just so that your team remains motivated.
Target Your Marketing
Times of plenty are the times to explore all sorts of marketing opportunities. You cast as wide a net as possible in hopes of maximizing returns. But during economic downturns, it is better to target your marketing to the strategies that have proven effective in the past. Zero-in on what you know works and set aside those unproven marketing channels for the time being.
Improve Company Efficiency
Tightening the belt offers the motivation to step back, evaluate your business processes, and look for ways to improve efficiency. If you believe your company is already operating as efficiently as possible, make the effort to evaluate anyway. You might be surprised to find out that you have room for improvement. Every process you can make more efficient will ultimately require fewer resources.
The Bottom Line
Although inflation is normal and cyclical, excessive inflation affects everyone. It affects consumers and businesses alike. As a company owner or manager, you may find your business having a harder time making ends meet with producer inflation approaching triple digits. First, know that you are not alone. We are all in the same boat.
Second, buckle down and tighten the company belt. Doing so isn’t pleasant, but it is necessary for survival. If we can help by taking scrap industrial plastic off your hands and putting some extra cash in your bank account, do not hesitate to let us know.