Most business professionals have always thought of inflation as very negative because of rising costs and declining purchasing power of customers.

But there are entrepreneurs who see inflation as an opportunity to explore new ways to attract customers and make long-needed changes to boost business productivity and lower costs.

For example, you could seriously consider investing with new partners, and seriously consider getting rid of all the side business.

The American “INC” website published a report by entrepreneurship expert Martin Zwilling, in which he gave some tips and presented priority strategies that business owners can benefit from, which could serve as a starting point to reduce the negative effects of current inflation on their business, or transform it. To a positive factor, the following came from it:

Obtaining revenue from existing customers

The writer says that now is the time to communicate with existing customers who are satisfied with what the company offers to repeat purchases, as achieving more revenue from your previous customers is less expensive than acquiring new customers.

The use of digital channels for communication, including email, social media and specialized websites, with promotional offers, will certainly have a positive impact.

The need to respond to new shifts and opportunities in the market

Inflation has caused consumers to rethink their spending habits, and as they look for new ways to save money and cut back on spending, you can capture their attention and benefit by offering new services or an expanded product line.

Maybe it's time to expand online through platforms like Amazon.

Outsource jobs that are not within your remit

Do not expose your business to pressure from its employees. If you have some jobs that may perform poorly due to lack of skills, you should immediately look for external sources at the lowest cost to compensate for that.

With the Internet available worldwide, outsourcing work no longer requires the travel and communication costs associated with telecommuting.

Your employees can work from home and use the Zoom application to do their work to the fullest.

Experiment with new revenue streams

In times of inflation, customers will react positively to new services, such as subscription services or promotion services to get more discounts.

For example, Amazon and Jeff Bezos attribute much of their continued growth, even during difficult times, to what are known as "experiments" of change.

Bezos believes that if you double the number of experiments you do per year, you will double your ability to grow.

Replace poor performers with better talent

Now is the time to make the balancing changes you've been putting off for so long.

The recent downsizing of workers in some of the larger companies means that highly skilled employees are now on the market, so you may be able to turn around some of your employees and raise your business's productivity, thereby reducing your overall costs while preparing for new growth.

Productivity is vital to the survival of your company, so it is advisable to develop an incentive-based plan to ensure maximum productivity (Shutterstock)

In another report by writer Luis Mosca on the Forbes economic website, the writer stated that they are in American Management Services, a financial consulting firm, consulting with business owners on how to allocate a plan to protect their business during any financial crisis.

The writer reviews the most basic areas of your business, and stresses that you must focus on 3 elements to protect your business:

  • those working with you

  • the integrity of your operations

  • your liquidity

These three areas must be worked on together, and each of them depends on the success of the other areas, and it is known as the closed circle.

The writer pointed out the need to assess your current situation, then design practical and achievable plans, and develop and implement them to overcome the challenges you face.

And you must be a functional and consistent leader through practice, not just on paper.

Productivity is vital to the survival of your company, so the writer advises developing an incentive-based compensation plan to ensure maximum productivity, and this will make your employees very motivated to achieve results, regardless of how affected revenues are.