Survival strategies for small business owners facing the impact of tariffs and potential spending slowdown
- Emily Brown
- Apr 7
- 4 min read
Tariffs and a slowdown in consumer spending can challenge even the most resilient small businesses. Yet, with deliberate action, you can take steps to help protect your operations, support your team’s well-being, and maintain a competitive edge. Here are strategic steps you can take immediately, in the short term, and over the long haul to effectively manage these pressures.
Customer Engagement & Communication
Today: Draft a customer message
Write a short email and social media post to reassure your customers. Acknowledge the current economic uncertainty but emphasize your commitment to quality and customer service.
Short-Term: Plan for price increases & communicate proactively
If you anticipate price increases due to tariffs or rising costs, prepare a clear and concise communication plan for your customers. Explain why the changes are necessary and how you plan to manage the transition. Be transparent about how these price adjustments will affect your products or services, and offer incentives where possible (such as locked-in pricing for loyal customers). It is important that your community understand how tariffs affect your business and their purchases.
Long-Term: Build strong customer relationships with consistent communication and transparency
Establish a regular schedule for sharing key company updates and industry trends that could impact your customers. A blog is an effective way to create a dedicated category on your website for organizing company updates. Provide clear channels for feedback to foster two-way communication and demonstrate that customer input is valued.
Financial Assessment
Today: Review Your Bank Balance & Upcoming Expenses
Take 30 minutes to log into your business bank account and look over your available funds. Check for any upcoming bills, subscriptions, or payments. Identify one or two non-essential costs (e.g., software subscriptions or office supplies) that can be paused or eliminated right away.
Short-Term: Contact Your Suppliers
Call or email your largest suppliers. Ask them how they plan to handle tariffs or delays in shipments. Inquire about payment flexibility—can they extend deadlines or offer smaller order quantities for the time being?
Long-Term: Implement Regular Cash Flow Monitoring
Take steps to manage unpredictable cash flow by conducting weekly reviews comparing actual income and expenses to your forecasts. Develop your forecasts by analyzing historical data and incorporating expected changes, such as upcoming contracts, government policy shifts, price adjustments, and fluctuations in variable costs like materials and shipping. Maintain a cash reserve covering 1-2 months of operational costs for added stability. Update your forecasts regularly to reflect market shifts, run multiple scenarios to assess potential risks, and benchmark against industry standards. Leverage software alerts to flag when cash flow dips below critical thresholds.
Leverage Your Online Presence
Today: Update Your Website with a Reassuring Message
Revise your homepage with a concise message reaffirming your commitment to serving the community and continuing operations. This update provides customers with confidence that your business remains stable and prepared to navigate challenges.
Short-Term: Launch a Limited-Time Promotion or Discount
Introduce a time-sensitive discount or promotion on your online store. Promote it through social media and email campaigns to drive quick sales. Consider adding a pop-up on your website that offers a discount code in exchange for customers' email addresses.
Long-Term: Optimize Your Digital E-commerce
Refine your online strategy making sure your website is optimized for SEO, offers an efficient user experience, and has a smooth checkout process. Add digital products—such as e-books, guides, or online courses—to diversify your revenue streams. These low-cost offerings can provide additional income while reducing dependence on physical inventory, creating a more adaptable and scalable business model.
Mental Wellness: Taking Care of You and Your Team
Today: Take a Moment for Yourself
Schedule regular breaks during the day—just 10-15 minutes to disconnect. Use this time to practice mindfulness, stretch, or take a quick walk. Implement deep-breathing exercises to reduce stress, and turn off notifications to minimize distractions. Taking these short, intentional breaks can help you stay focused and manage the ongoing stress.
Short-Term: Team Wellness Activities
Set up weekly check-ins with your team to discuss well-being, not just work. Create opportunities for virtual team-building activities like collaborative brainstorming sessions or stress-relief challenges. Provide easy access to mental health resources, such as counseling services or wellness apps. Encourage short breaks during the day, allowing the team to disconnect and recharge. These actions can help build a supportive environment, to boost morale and keep everyone engaged and productive.
Mental Wellness-Focused Workplace Culture
Incorporate mental wellness into company policies by offering flexible hours, providing mental health support, and setting up feedback channels. Train leadership to prioritize employee well-being, creating a healthier, more efficient workforce.
Operational Scrutiny
Today: Conduct a thorough review of your business's supply chain.
Identify any potential vulnerabilities, such as reliance on single suppliers or long lead times, and explore alternative sourcing options. Diversifying suppliers now can reduce the risk of disruptions in the future.
Short-Term: Reevaluate your staffing levels and optimize scheduling to ensure resources are allocated efficiently.
Temporary adjustments, like cross-training employees or redistributing workload, can help maintain productivity while reducing labor costs during slower periods.
Long-Term: Reduce reliance on manual processes.
Minimize reliance on manual tasks by implementing process optimization tools, such as workflow automation and project management software. Centralize your business operations on your website, integrating accounting, marketing, and social media platforms. Leverage automation to trigger actions like email campaigns and notifications. Continuously monitor key performance metrics and adjust systems to stay aligned with market trends.
Seek Immediate Local Connections
Today: Reach Out to Fellow Small Business Owners
Reach out to 1-2 small business owners in your network. Discuss the challenges you’re facing and share ideas for navigating the situation together. A quick phone call or video chat can provide valuable insight and help you feel less isolated.
Short-Term: Get Involved with Local Business Organizations
Connect with local business organizations like the SBDC, Chamber of Commerce or small business alliances. They often have resources, grants, or virtual meetings that can help small businesses adjust to economic changes. Attend virtual events to network and exchange ideas with other entrepreneurs facing similar challenges.
Long-Term: Create a Local Business Support Network
Build a local support network that you can rely on when facing future challenges. Collaborate on marketing efforts, share resources, and create a cooperative environment that strengthens your business and your community in the long run.
If you need assistance with website design, marketing strategies, or updating your messaging to better align with the current climate, schedule a free 15-minute consultation. Together, we can turn uncertainty into opportunity by staying adaptable and connected.
