3 Strategies for Small Businesses to Thrive Amidst Trade Challenges 

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Not too long ago, Donald Trump became the U.S. president. Almost immediately, he launched a trade war with China. 

He imposed a 10% tariff on goods from China, which he doubled to 20% later. In response to Trump’s measure, the latter increased tariffs on U.S. imports to 125%. 

The trouble with the hike in tariffs is that they raise prices, cut profits, slow economic growth, and increase global tensions. Increases in tariffs are troublesome for global corporations. But it is also a problem for small businesses. It affects their pricing structures, cash flow, supply chains, and profitability. 

It’s not all doom and gloom, however. There are smart, doable things you can implement to not just survive, but actually thrive. 

In this article, we’ll share a few strategies that can help you ride the waves and come out thriving. 

#1 Diversify Your Supplier Network

If you’re relying on a single supplier, you’re one unexpected delay or regulation change away from a major disruption. 

Supply chain disruptions can pop up from anywhere—pandemics, political unrest in supplier countries, or something as mundane as IT system failures. 

Small businesses often feel these impacts more intensely than larger companies. The fallout can be significant, leading to increased costs, reduced sales and revenue, inventory shortages, and customer dissatisfaction. 

Diversifying your supplier network can help you dodge these headaches. More options mean less stress and more control. This is also a fantastic way to stumble upon new ideas, better quality materials, or more efficient ways of doing things.

Think local as sometimes the best partners are right in the neighborhood. Sourcing locally can mean quicker delivery times and reduced transportation costs. It also lessens dependence on long and complex supply chains.

Look further afield as well. Exploring suppliers in different regions or countries can be a smart move to spread the risk if one area faces a disruption. It’s crucial to do thorough homework. Research their names, addresses, ownership structure, tax information, and business licenses. 

#2 Amplify Your Brand’s Online Presence 

Where’s the first place most people go when looking for a business? Online, usually through a search engine, right? Your customers are also doing that. 

So, a strong online presence is non-negotiable. One of the easiest ways to shine online is to own that Google spot. Setting up and maintaining a Google Business Profile can help improve local visibility.

Make sure your website is sharp, updated, and mobile-friendly. If it isn’t, relaunch it with an AI-powered website builder. 

Hocoos explains that AI website builders create a business-ready website with everything you need within minutes, minus the headaches of traditional design. All you need to do is answer a few questions, and the website generator will create a website tailored to your needs. 

Make social media your friend. However, don’t be on every single platform. It’s more effective to pick a platform where target customers spend their time and then focus on authentic engagement. 

A local bakery, Sister Pie in Detroit, is a case in point. The little street-corner pie shop effectively used Instagram to share “progress shots, pie-of-the-day announcements, and dance break videos,” creating a strong connection with their audience.

#3 Lean Into Your Local Market

Sometimes, businesses get so focused on growth and shipping things all over the world that they totally overlook what’s right in front of them. That is, their local market.

When international trade gets messy, the local scene can be your safe harbor. Focusing on the local market helps build a loyal customer base that is often less susceptible to disappearing when global economic winds shift.

Collaborating with other local businesses, such as a coffee shop, a boutique, or a service provider, can be incredibly effective. Consider joint promotions, co-hosting an event, or simply giving each other shout-outs. Such partnerships amplify reach and resources, creating a win-win for all involved small businesses.

Get involved with the community. Sponsoring the local Little League team, offering a discount to teachers, or hosting a small workshop are all excellent ways to connect. People remember businesses that are trusted community members. 

An excellent example is Chelsea State Bank. It’s always been at the center of community projects, including the TimberTown Reimagined project. It helped raise more than $100,000 for the project. Not only that, but its staff also came out and worked in the trenches during build week. 

The takeaway? Trade challenges are tough, no doubt. But small businesses have one huge advantage over big corporations: agility. You can move fast, adapt creatively, and try things on the fly without ten layers of corporate red tape.

None of these strategies is rocket science, but just small, intelligent steps that can make a significant difference. 

Small business owners are already some of the most resourceful, gritty, and innovative people out there. And these tips are just a few more tools to throw into your already awesome toolkit.