Gas prices, labor costs, supply chain disruptions, the impact of inflation. Not only is the average consumer experiencing these challenges, businesses are too.
According to a recent survey by the U.S. Chamber of Commerce, one in three (33%) small business owners now rank inflation as their highest concern. And in response to those concerns, 67% of small business owners have raised prices.
To curb the exponential rise in inflation, the Federal Reserve raised interest rates 0.75% in June, the biggest hike since 1994, and experts anticipate additional hikes to come.
Whether these actions will provide a reprieve for consumers is yet to be seen. However, with these 6 tips from Lockton Affinity Home Care, you can take matters into your own hands to help ease inflation’s impact on your business.
Actions to Reduce the Impact of Inflation
If your home care business is feeling the impact of inflation, there are actions you can take. Consider these 6 tips:
Stock up on supplies—If prices for your core materials continue to rise with each order, consider stocking up now. Look into renegotiating contracts with your suppliers and check that all your supply orders are being used. You may also consider substituting products or trying a different brand.
Examine business expenses—Cut back on all nonessentials and look for ways to reduce your production costs. Save on gas by adjusting routes, carpooling and reducing the number of vehicles used.
Focus on growth—To stay ahead of inflation, make moves to grow your business. Increase your marketing, revisit your pricing strategy and invest in your business to improve productivity and reduce overhead costs.
Refinance any existing debt—With interest rates on the rise, now is the time to refinance any expensive debt. Reinvest the savings into your business or save it as a stash in case of a sudden downturn.
Raise prices—While raising prices isn’t ideal, doing so strategically can help you combat inflation while keeping customers satisfied. Avoid dramatic across-the-board price increases. Raise prices slowly in modest increments and choose areas where customers are less likely to notice.
Get employee feedback—Your employees will have a different vantage point to your business and its expenses. Ask for their insight into where money can be saved.
Protecting Your Home Care Business
Whether from inflation or claims, Lockton Affinity Home Care can help protect your business.
Designed in collaboration with some of the nation’s leading home care franchises, our program meets the exact needs of home care businesses like yours.
If you have questions about coverage, risk management and more, contact Lockton Affinity Home Care at (800) 723-9624 or HomeCare@LocktonAffinity.com.