6 ways to support small businesses during inflation | Business

Small businesses still adjusting to the pandemic and labor shortages face another economic hurdle. In the year According to the 2022 MetLife and American Chamber of Commerce Small Business Index, inflation is a concern for 44% of small business owners. It may also contribute to their declining morale. The small business optimism index measured by the National Federation of Independent Business fell below the 48-year average for the sixth consecutive month since June 2022.

But some entrepreneurs say there is a glimmer of hope. With price hikes across the board, small businesses have a secret weapon that many big-box stores don’t: a relatable person behind the brand.

“Overall, I think this is where indie brands win — where we can be personal and open with our community,” says Leslie Valdivia, founder and CEO of Vive Cosmetics, an online culture-focused beauty brand.

Here’s how clients can help small businesses stay afloat as the cost of doing business soars.

If you have a good experience at a local restaurant or shop, pay it forward by letting others know. This is especially critical for new small businesses that don’t yet have an established reputation.

“Evaluations are free,” says Jennifer Glanville, director of partnerships and collaborations at Boston Beer Company. “Speak to the unheard.”

“Likes or comments on a post add credibility to that brand,” says Glanville, who also runs American Dream Brewing, a training program for small businesses in the food and beverage industry. “It can increase their followers.”

And now that many businesses have tighter margins because of inflation, they have less money to spend on advertising, added Beverly Malbranch, Caribrew’s founder and CEO.

“Sharing is supporting,” she says, explaining that it can be as simple as posting an Instagram story.

When a business is short on cash on hand, it can be a challenge to pay bills, stock shelves, and hire employees. Paying in advance when you can will improve the cash flow of businesses. And that’s why companies like Caribrew offer prepaid subscriptions to customers who know they’ll use the product frequently. Subscription-based models, whether prepaid or unpaid, also give business owners a better idea of ​​how much revenue they’ll earn in the future, so they can plan ahead.

Being a loyal customer can help small businesses tremendously. It’s even better to let the business owner know you’ll be back early.

Tara Ritchie, owner of Wagin’s Tail Pet Resort in Whitesburg, Kentucky, says advance reservations are one of the best things you can do to help service-based businesses. When her clients do this, she can run the salon more efficiently and better predict cash flow. If you have to cancel, she adds, try to do so early so the business has time to fill the appointment. No shows, on the other hand, leave businesses at a disadvantage.

Fanny Xie, owner of Uni Uni Bubble Tea in Appleton, Wisconsin, says lines can be long when her bubble tea cafe is short-staffed. Instead of immediately leaving a bad review because of a long wait or a problem with the order, she suggests talking to the staff first.

“I hope the customer will understand more about our situation,” Xie says.

Shopping small goes beyond Small Business Saturday and holiday gift giving. Making shopping local a habit and spending your money in your community – no matter how small the purchase – is a great starting point for consumers.

“The reality now is that inflation is driving everything up,” Glanville says. “So if you put your dollars to work for a small business, it really makes a difference for them.”