Survival Strategy for Small Business in Today’s“Everything Costs More” Economy

“69 is now called 96 because of the economy.” Honestly? Accurate. Painfully accurate.

And look — I felt that in my soul last week at Trader Joe’s, my happy place… normally. I walked in for “just a few things” (famous last words), grabbed my usuals — the “reduced fat” cheese puffs, the praline pecans, and of course, a bouquet of seasonal flowers I absolutely did not need — and somehow walked out $86 lighter.

Eighty. Six. Dollars. For what used to be a $45 situation.

Even the cashier looked at me with that “yeah… everything’s weirdly expensive right now” face. And that’s when it really hit me: Inflation may be lower, but it’s not low.

Yes, inflation has cooled to 3% from those wild 2022 highs--but it’s 1% higher than the target inflation of 2%.  Although much lower, costs have gone up … and then just kind of stayed there like a house guest who won’t take the hint.

So, if you’re a small business owner wondering, “Why does everything still feel pricey even though the news says things are fine?” You’re not imagining it.

Let’s unpack what’s really going on — and more importantly, what you can do to keep your business steady, smart, and profitable in this still-weird economy.

So… What’s Driving Costs Up Now?

We’re not in full-blown crisis mode like 2022, but we’re not in a chill, low-inflation fairy tale either.

Here’s what keeps prices up:

1. Gas & Energy: Even when gas prices dip a little, they bounce back like a bad sequel. Energy prices still ripple through everything. If it moves, heats, cools, or lights up, energy costs touch it.

2. Food Prices: Grocery runs feel like mini heart attacks. Food prices, especially meat, eggs, and eating out—are still higher than we’d like.

3. Housing Crisis: Housing costs are a huge piece of the inflation puzzle. Rents and home prices surged after the pandemic and never really returned to earth.

4. Tariffs & Trade Tangles: Tariffs have been a key ingredient in pushing prices higher. We have seen the impact on prices for food, consumer goods, produce, electronics and home furnishings to name a few. (Can’t wait to see the grocery bill for Thanksgiving!)

5. The Numbers vs. Real Life: On paper, the “official” inflation numbers paint a rosier picture than what households and small businesses feel daily. Translation: the data says, “you’re fine,” your budget says, “absolutely not.”

   
   

So, What Can Small Business Owners Actually Do?

You can’t control gas prices, housing, or tariffs (sadly), but you can adjust your business response.

• Be Flexible: This is not the time to be rigid. Consider offering tiered packages, adding “lite” versions of services, and solving today’s pain points.

• Review Your Business Financials (Like… Really Look) Not in a once-a-year way—more like “coffee and spreadsheets date.” You can’t make strategy decisions if you’re guessing!

• Increase or Hold Prices (On Purpose, Not Out of Panic): You don’t have to raise prices across the board—If you do, make sure and tell your customers why. 

• Invest in Automation & Technology (Especially AI) In a tight, weird economy, efficiency is not a luxury—it’s survival. Look at ways to use AI and automate repetitive tasks.

• Reduce Unnecessary Costs: Consider ditching software you barely use, consider sharing space, tools & resources & cancel “non-ROI” adding subscriptions.

• Pivot if Needed: Sometimes the market is telling you: “This old thing? Not it anymore.” Consider new services, target market or delivery methods

Final Thoughts:

Even with inflation “down” on paper, real life still feels expensive and exhausting—especially when you’re running a small business. But you’re not powerless. And you don’t have to do it alone.

For more customized survival tips and marketing support for your small business, email me at debbieg@bizmadeez.com. Together, we can make sure your business not only survives this economy—but comes out of it stronger, smarter, and still very much alive.