8 Ways to Protect Your SME

From Inflation
1 Adjust Pricing and Offerings

2 Implement Strategic Cost Management

3 Optimize Your Cash Flow

4 Enhance Operational Efficiency

5 Invest in Growth, Diversification, and Assets

6 Optimize Debt Strategy and Financial Structure

7 Get Spending Visibility and Manage Consumption

8 Explore and Utilize Alternative Funding Sources

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1. Adjust Pricing and Offerings

Consider gradual price increases to pass on

higher costs to customers.
Re-engineer your product or service by
reducing size, using less expensive
components, or streamlining services to
maintain value.
2. Strategic Cost Management

Understand how inflation affects your

business, including potential revenue
decreases and the implications of raising
prices.
Examine expenses for cost-saving
opportunities, engage with suppliers for
better deals, and differentiate between
essential and non-essential costs.
3. Optimize Your Cash Flow

Improve the accounts receivable process

for timely payments and consider
incentives for prompt payments.
Budget for inflation, ensuring you're
prepared for rising costs.
 4. Enhance Operational
Efficiency

Conduct an energy audit to reduce

consumption costs.
Use a clean-sheet mindset to scrutinize
activities, eliminate unnecessary work, and
automate processes.
 5. Invest in Growth,
Diversification, and Assets

Enhance skills and marketability, and

explore opportunities to reach new
markets or diversify product offerings.
Diversify investments into assets that grow
in value, such as stocks, real estate, and
raw land, to hedge against inflation.
6. Optimize Debt Strategy
and Financial Structure

Leverage debt, considering inflation can

make it easier to pay off over time. But:
pay attention to the current high interest
rates to ensure your financial decisions
actually benefit you.
Revisit the mix of debt and equity and
restructure the balance sheet to ensure a
robust financial foundation.
7. Get Spending Visibility and
Manage Consumption

Establish a clear view of where money is

spent and understand the real cost drivers,
leading to actionable cost-saving initiatives.
 8. Leverage Alternative
Funding Sources

Consider crowdinvesting and other non-

traditional finance options. They can
provide flexibility and reduce dependency
on traditional banks, helping SMEs maintain
cash flow and access capital during
inflationary times.
Equity financing avoids the current high
interest costs.
Receive More Actionable Advice
for Business Owners

Daniel Horak
Co-Founder of CONDA Crowdinvesting
We bring entrepreneurs and investors
together.

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