Businesses face many challenges today. Economic downturns, pandemics, and global conflicts create uncertainty that tests even the strongest companies.
The biggest challenge right now is the global economy.
Changes in trade policies and rising tariffs create uncertainty and market volatility, and many small businesses are feeling the impact. Some are looking for new sources of goods from countries not affected by tariffs. Others are dealing with higher costs and adjusting their prices.
Adapting to the changing economy can be tough, but your business can succeed in this uncertain environment with the right strategies.
Read on to learn tips for starting a business during volatile times.
Be adaptable
A solid business model provides security, but flexibility is essential for navigating market shifts. No matter the economic situation, your business must adjust to changing customer needs, new technologies, and increased competition. Consider the following strategies:
- Adapt your offerings: To continuously provide value to your customers, refine your products and services regularly.
- Diversify: Relying solely on one product or service can weaken your business in the face of market fluctuations. Enhance your flexibility by diversifying income sources. This can include introducing new product lines, targeting different customer segments, or exploring new sales channels.
- Utilize tools and technologies: Tools, such as AI, enhance efficiency and facilitate growth. These resources can help your business remain competitive, reduce costs, and free up resources for future expansion.
Embrace risk management
Skilled risk managers and business leaders know how to weigh acceptable risks against their potential benefits. Playing it too safe can stall growth and opportunities, while poor risk management can create instability and drive-up costs.
A thorough risk assessment is an important part of building a strong risk management program. Think of it as a complete list of the risks your business faces.
Once you have a list, consider ways to reduce each risk. For example, to guard against scams that often target small businesses, it's important to teach your team how to spot these scams so they can avoid them.
Regularly review and update your list of risks and your strategies to manage them as your business changes. You may find new risks that need attention, or some risks may no longer be relevant.
Have backup plans
While lean, just-in-time operations are usually more efficient, building in redundancy – extra resources and backup plans – can help you avoid being caught off guard by uncertainty and disruption.
For example, you might want to increase your raw material inventory, duplicate production processes, or have contractors ready to help during busy times. If you’re starting a new business, consider getting a line of credit, look into alternative materials or suppliers, and ensure customer data is secure both online and offline.
Having flexible backup plans can soften the blow of a crisis, but things like extra supplies, added production, or more staff can get expensive. It’s all about balancing smart spending with building the safety net you need.
Maintain a customer-first mindset
Strong customer relationships are a powerful source of resilience for any business. Loyal customers are more likely to stand by you during challenging times. To strengthen these connections, prioritize clear, consistent communication. Share regular updates, offer honest explanations, and respond promptly to keep customers informed and engaged.
For example, if a price increase is necessary, be transparent about the reasons, reassure customers of your continued quality, and look for ways to add extra value, such as flexible payment plans, bundled offers, or discounts on future services.
Above all, focus on personalized support to show how much you value your customers, reinforcing their loyalty and your long-term partnership.
Leverage strategic partnerships
No business operates in a silo. Partnerships help your business grow faster, reach new customers, and improve its competitive edge – without spending more on marketing. Consider these partnership strategies:
- Partner with complementary businesses: Team up with brands that complement yours through cross-promotions and co-branded projects.
- Take advantage of affiliate and referral programs: These encourage partners to promote your product or service, which can boost sales with little upfront cost.
- Networking is also crucial: Small business owners who connect with peers and industry leaders can gain useful insights and find collaboration opportunities that drive growth. For instance, working with respected leaders in other sectors can help build trust and attract enterprise clients.
Seize opportunities
Always look ahead and be willing to take smart risks. Many people focus too much on short-term results and neglect to invest in the future. Successful business owners are those who anticipate future demands and opportunities, pay attention to emerging technologies, remain open to new ideas, and invest now to stay ahead of their competitors.
What small businesses can be “tariff-proof”?
If you want to start a small business or create a new source of income for an existing one, consider businesses that are not much affected by tariffs since they do not involve physical goods.
- App or software developer
- Business consultant
- Childcare provider
- Cleaning service
- Content creator
- Elderly care provider
- Event planner
- Financial planner
- Graphic designer
- Influencer
- Laundromat
- Marketing consultant
- Personal trainer
- Pet sitting / dog walking
- Real estate
- SaaS provider
- SEO consultant
- Tutor
- Upcycled home furnishings
- Vintage clothing and accessories
- Web designer
Thinking about starting a small business?
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