Gas prices, labor costs, supply chain disruptions, the impact of inflation. Not only is the average consumer experiencing these challenges. Outdoor businesses and clubs are, too.
According to a recent survey by the U.S. Chamber of Commerce, 50% of small business owners now rank inflation as their highest concern, with 70% saying they have been forced to raise prices.
Earlier this year, the government began to take action to help curb inflation. The Federal Reserve has raised interest rates seven times in 2022, from a low of 0.25% to 4.4%.
While the government’s actions haven’t had much impact yet, you do have options beyond the wait-and-see approach. Here are six options for taking matters into your own hands and helping curb inflation’s impact on your outdoor business or club.
Actions for Curbing Inflation’s Impact on Business
If your outdoor business or club is feeling the impacts of inflation, a proactive approach can help. Consider these 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 out a different brand.
Examine business expenses—Cutting back on nonessentials and looking for more ways to reduce your other costs can help. Save on gas by limiting pickup and delivery services, 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 existing debt—With interest rates on the rise, now may be the time to refinance any expensive debt, if you haven’t done so already. Reinvest the savings into your business or keep it as an emergency fund 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 more money can be saved.
Protecting Your Outdoor Business
Whether from inflation or claims, Lockton Affinity Outdoor has insurance to help protect you.
The right insurance is important in any type of economy. Coverage helps protect your business, club or organization in the case of accidents, injuries and other losses. But keeping your policy up to date during inflationary cycles is also important.
Inflation can cause changes for property values, debt ratios and liability exposures. But a tailored insurance solution that fits yours business can help you weather the storm and protect what matters most.
To learn more about coverage options for your outdoor business, club or organization, visit LocktonAffinityOutdoor.com or call (844) 401-9444.