Navigating Business Uncertainty: The Impact of Tariffs and Strategic Planning for Small Businesses
In the aftermath of a politically charged election season, small to medium-sized business owners are facing heightened uncertainty. In Scotch Club’s recent podcast discussion featuring Grace, SUBTLEGEND's business strategist, sheds light on the challenges entrepreneurs are navigating in a volatile economic environment—particularly in light of the tariffs proposed by former President Donald Trump.
The Tariff Threat and Its Impact on Small Businesses
Each business feels the wave of frustrations with the ongoing uncertainty in the business world, particularly in the wake of political shifts. Many of our clients are feeling similarly uneasy, as the proposed tariffs on Chinese imports could have significant negative effects on businesses that rely on overseas supply chains. There’s no secret here, this feels like “a war on small businesses.”
Thoughts on International Trade
While we know that the shift in manufacturers' style of business may change in this season, we cannot let the fear of the unknown hold us back from continuing to pour into our businesses.
The Challenge of Adapting in a Shifting Landscape
For younger entrepreneurs, particularly millennials and Gen Z, the challenges are even more pronounced. We know the upcoming generations may now feel like they are drowning in potential plans to save their business. But, in this climate, adaptability is key to long term success. What SUBTLEGEND says about these times that really put our faith in good business to the test? "Win anyway." The focus should be on enduring and thriving through the ups and downs, with the long-term survival of the business as the ultimate goal.
Planning for Uncertainty: A Proactive Approach
The thing that will remain the most important through the upcoming changes is without doubt, strategic planning. Businesses—especially small ones—need to have a solid plan in place that accounts for various scenarios, including potential exits, changes in supply chains, and the impacts of tariffs. Some should focus on cash-heavy strategies, while others should diversify their inventories or supply chains to remain resilient. Regardless of the approach, we believe that flexibility and foresight are crucial for weathering the storm.
For small business owners looking to safeguard their operations, here are our suggested strategies:
Create a Comprehensive Business Plan – A well-rounded plan should anticipate potential disruptions and include contingencies for a range of scenarios, from supply chain issues to an exit strategy.
Hoard Cash for Experimentation – Having cash reserves allows businesses to experiment with new ideas or pivot when necessary, offering some flexibility in uncertain times.
Diversify Supply Chains – Establishing relationships with suppliers in countries not affected by tariffs could help mitigate risks associated with international trade disruptions.
Stock Inventory that Generates Profit Upon Purchase – Businesses should focus on stocking products that will generate immediate value, ensuring that inventory purchases are financially sound.
Closing Thoughts: Resilience and Responsibility
Here is SUBTLEGEND’s key reminder to business owners: Don’t panic, plan. While the political and economic climate is unpredictable, planning for the worst and adapting to changing circumstances can help businesses not just survive, but thrive. For those looking for further insights or assistance, SUBTLEGEND is here to help you make a plan that works for YOU.
We won’t disappear. We are here to continue the conversation about navigating tariffs and the broader economic uncertainties. Stay tuned for more strategies and advice for weathering these challenging times, and listen to Scotch Club to hear more about what we think about tariffs.
Comments