Why it’s harder to project for small business goals

How do you plan for your business when you have no idea what’s going to happen, especially in turbulent times (tariffs, inflation, high interest rates... the list goes on)? 

Start with these questions to help make a business plan: 

1. Costs are going up (but are yours?) 

2. Wages are going up (are you competitive?) 

3. Competition for employees is up (are my employees content?) 

4. What are your customers saying about the service or product you supply? Is it worth it to them to be repeat customers? 

5. What needs are you meeting for your customers? What are their concerns for the near future? 

6. How are your customers likely to react to certain situations like higher costs, lower supplies, etc.? 

7. How are your employees feeling about your business and their personal needs? Are they scared they will be laid off? Worried about making ends meet? 

In unpredictable political and financial markets, these questions highlight where you can exert influence to comprehend the environment in which you’re conducting business.

Beginning with questions you can actually answer will place you on the map, so you know, at least, how far you have to go to reach your goals. 

Do what’s best for YOUR business 

Watch your competition, but don’t always do what they do. Maybe they are cheaper, but do they deliver the quality and reliability that you do? Depending on your business, this might be part of your competitive edge. Keep reminding your customers of what you do offer. Your competition may be about to go under or is borrowing heavily — there is no way to know their financial situation. Your survival and growth are what matters, not theirs. Don’t put yourself in a hole to copy a company that “looks” successful. 

Listen to the news, but don’t base all of your decisions on it. Make sure the news applies to you and your customers. For example, it’s easy to panic when listening to the news about the unpredictability of the stock market, supply chain shortages, or high tariffs, but are these really affecting you directly? Even if indirectly, how can you mitigate the effects? 

Spend Carefully and Stockpile Cash 

Set aside money FIRST. Taxes, loan payments, payroll, and bills will come regardless of whether you have saved the money to pay them. Be prepared to also consider tariffs, inflation, and rising interest rates. 

Look at EVERY item you are spending on and try to cut it out or cut back. Those small things add up. Even cutting back on a few small things could make a surprising long-term difference. Do you even know what you’re spending? Things like software subscriptions add up quickly and you may be paying for things you are not using. You may also need to spend money in a different way. Perhaps hiring a professional who knows what they are doing can save you money in the long run with efficiencies or changes that you didn’t know were possible. 

Focus on Your Employees 

Your employees are a very valuable asset. How can you maximize your employees’ value to your company? Do you have good processes written down and are they being followed? Do you have the right employees in the right seats? Is this the time to make changes? Are your employees passionate about you and your business? You’ll get much better results if they are doing what they are good at and what they care about.  

Pay fair rates to your employees. Many employees know that small businesses can’t pay what a large corporation can, but make sure you aren’t making them pay for your success. It will be harder to retain an employee if their personal financial situation gets rough with rising prices. 

What can you offer your employees that don’t cost as much money? Bringing in breakfast or lunch, knowing what matters to them and asking about it, having some fun occasionally, etc. are all ways to engage your employees and make them feel like this is a great place to work. 

Work to keep the employees you have. Having good employees is important and you should always have people who fit your company, but if someone leaves that is really valuable, its impact is considerable. Training new employees can be costly in both time and money. Employees leaving also affects the employees staying. Sometimes, it’s necessary for change, but doing what you can to keep your good employees has a lot of value. 

Being a small business owner has its challenges and staying in business as long as you have is commendable. Planning and focusing on your spending can be the key to successfully moving forward. Need help? We have some proven methods that have helped our clients that we’d love to share. 

Reach out to us.