With impending tariffs, small business owners must be proactive in maintaining financial health especially those in manufacturing, retail, e-commerce, technology, construction, import/export, commodity based product companies, etc.
In a recent conversation with Jamila Wright, Founder of Brooklyn Tea, she shared how every time the government announces new tariffs, she immediately gets an email from one of her international suppliers—either confirming that prices for her tea will remain stable or warning of an increase.
This reminded me just how real the impact of tariffs is on small businesses—the very backbone of the U.S. economy – and more closely, how this economic disruption may impact our clients that are in manufacturing and small retail.
Government policies can feel distant and abstract until they start affecting your supply chain, cash flow, and pricing strategy.
So, how can you stay ahead of these changes?
1. Assess Your Cost Risks & Supplier Dependencies
✅ Identify which products or materials you import that could be affected.
✅ Discuss cost expectations with your suppliers in advance.
✅ Look into alternative or domestic suppliers to reduce exposure to price increases.
2. Strengthen Supplier Agreements & Relationships
✅ Secure long-term contracts to lock in current pricing before tariffs take real effect.
✅ Renegotiate payment terms to help manage cash flow proactively.
3. Stay Up to Date on Trade Policy Changes
✅ Keep track of evolving trade regulations and be ready to pivot if needed.
✅ Explore exemptions or waivers that might help lower tariff costs.
✅ Follow updates on trade agreements that could benefit your industry.
✅ Connect with industry organizations advocating for small business interests.
4. Refine Your Pricing Approach
✅ If necessary, adjust pricing in a way that aligns with your brand’s value.
✅ Introduce small price increases gradually rather than all at once.
✅ Consider bundling products or offering added value to maintain customer appeal.
5. Enhance Supply Chain & Operational Efficiency
✅ Reduce dependence on tariff-impacted imports by diversifying sourcing options.
✅ Optimize operations to cut costs, such as improving inventory management and sourcing of direct costs.
✅ Explore moving production closer to home to avoid tariff-related expenses.
6. Boost Financial Stability
✅ Set aside at least 6 months of cash reserves to help absorb unexpected cost increases.
✅ Improve financial forecasting to better anticipate and plan for tariff-related changes.
✅ If your business relies on international transactions, consider strategies to manage currency fluctuations.
7. Focus on Innovation & Competitive Advantage
✅ Differentiate your offerings to sustain demand even if prices rise.
✅ Strengthen branding, marketing, and customer experience to justify pricing adjustments.
You can’t afford to sit back and wait. Staying ahead of economic shifts is key to long-term resilience.
Those who take a proactive approach can navigate these challenges more effectively. Remain adaptable—continuously evaluating your strategies and making adjustments as needed.
With careful planning, your business can not only withstand these changes but also emerge stronger and more resilient in the long run.
Tricia Taitt is the CEO and Chief Financial Choreographer of FinCore. She holds an M.B.A from The Fuqua School of Business of Duke University, and a BS in Economics with a Finance concentration from The Wharton School at the University of Pennsylvania. For over 20 years, she’s been a finance professional. Half of the time was spent working on Wall Street while the other half was spent in the trenches side by side with small business owners. As a result of working with FinCore, clients have been able to take control of their numbers and feel more confident in their ability to make decisions, while increasing profits by 10% and building a cash stash to invest in growth. Follow Tricia on LinkedIn and Instagram.
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