• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Big Ideas for Small Business logo

Barbara Weltman

Big Ideas for Small Business, Inc.

Whitepaper download

Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."

This field is hidden when viewing the form
Get the:

  • Home
  • About Us
  • Big Ideas For Your Business
    • Idea Of The Day ®
    • SMB Legal
    • SMB Taxes
    • SMB Financial
    • Small Business
    • Newsletter Archive
  • Services
  • Books
  • Blog
  • Multimedia
    • Videos
    • Radio Shows/Podcasts
  • Be a Guest Blogger

Preparing for Economic Changes: Added Costs of Doing Business

November 17, 2020 / By Barbara Weltman

Economic change can result from any number of factors. The one most prominent now is the pandemic, which caused dramatic shifts in the business landscape. These translate into added costs, some of which are very visible and some largely hidden. There are also unknown changes that may arise due to factors such as technology, weather, or personal circumstances, and there’s no way to predict if or when added costs will appear. Nonetheless, all of these costs need to be factored into doing business now. Business owners need to be fiscally nimble to handle added costs so they can maintain profitability.

Preparing for Economic Changes - Added Costs of Doing BusinessVisible costs

If the pandemic has taught us anything it’s that added costs can easily arise due to a change in circumstances. Businesses had to purchase personal protective equipment (e.g., masks) for their staff and other items (e.g., hand sanitizers) for their in-person customers. They also had to retrofit their facilities to make it safe for employees, customers, and other visitors. This has meant rearranging the use of space as well as installing plexiglass barriers and, in some places, washing stations.

The way in which business has come to be conducted as a result of the pandemic has also triggered visible costs. Those in the food and beverage industry pivoted to offering deliveries. Many now incur fees for DoorDash, GrubHub (as high as 30%), and other delivery services, while other businesses ramped up their own deliveries with cars, vans, and added delivery people.

Hidden costs

Some of the costs of economic changes are not so visible. As a result of the pandemic, companies have had to devise new ways to communicate effectively with employees. Costs for this aren’t limited to visible costs, such fees for as online meeting tools. There are the invisible costs of the time, patience, and skill to keep remote workers engaged.

Another hidden cost arises from addressing employee stress resulting from the pandemic. Yes, health plans may cover telehealth services for employees experiencing anxiety and depression. But hidden costs again relate to communicating with employee about ways to handle stress.

Unknown costs

Economic change is always accompanied by some unknown costs. These arise (as listed earlier) and then become known. Because they are unknown, by definition they can’t be put into a budget. But the budgeting process needs to be adaptable when unknown changes materialize.

Handling changing costs

Whether costs are visible, hidden, or are currently unknown but later arise, it’s essential to address them in order to remain profitable. Your choices include:

  • Raising prices. Some businesses may add a surcharge to cover temporary costs. However, from a marketing standpoint, decide whether this label for an additional cost is advisable. An overall price hike may be preferable.
  • Cutting expenses. This is easier said than done. However, it’s always possible to trim fat from a budget, especially if the budget has not been thoroughly scrutinized in a while. For example, you may be able to reduce some insurance coverage if the current policy limit is no longer needed; you’re paying for something you won’t ever use.
  • Increasing sales. Businesses are always looking to bring in more revenue and, with economies of scale (your rent and other overhead doesn’t change even though the portion of overhead covered by each sale declines), this can add to profitability. Adding new revenue streams…some of which may be created by economic change…is another strategy for improving profitability.

Final thought

Economic changes may bring added costs, but they also bring added opportunities.

Remember, as industrialist Andrew Carnegie said:

“Watch the costs and the profits will take care of themselves.”

Tags costs of doing business economic changes handling changing costs pandemic preparing for economic changes small business

Primary Sidebar

Categories

  • General Business (506)
  • Guest Blog (115)
  • Homepage (29)
  • Small Business (1,009)
  • SMB Financial (330)
  • SMB Legal (67)
  • SMB Taxes (328)

Barbara’s Recent Posts

  • Your Tax on Business Profits under the One Big Beautiful Bill July 15, 2025
  • How to Choose the Right Promotional Product Distributor July 11, 2025
  • Is Christmas in July for Your Small Business? July 10, 2025
  • How to Streamline Recruitment and Selection to Enhance Hiring Results July 9, 2025
  • One Big Beautiful Bill: Checklist of Tax Changes for Small Businesses July 8, 2025
  • What the U.S. Supreme Court Told Small Businesses in This Term: Part 1 July 3, 2025
  • Mid-Year Business Planning for 2025 July 1, 2025
  • 10 Ideas for Coping with Cash Flow Challenges June 26, 2025
  • 5 Insurance Traps to Avoid June 24, 2025
  • Creating a Feng Shui Office Layout for Your Business June 20, 2025
  • Scaling Your Business by Optimizing Social Media Marketing June 19, 2025
  • The Timeless Value of Business Cards in a Digital World June 18, 2025
Awarded Top 100 Small Business Blog medal (link will open in a new window or tab)
Marquis Who's Who 2023 Badge
Top Small Business Blogs (Link will open in a new window or tab.)
Fiverr Pro
8 Financial blogs small business Owners Need to Read. Invoice home.  (link will open in a new window or tab)
Best Small Business Blog, Expertido.org
Top 50 Small Business Blogs 2018
Best Small Business Blogs
BizHumm Top 100 Business Blog Award to Barbara Weltman
FitsSmallBusiness.com: Award for Best Small Business Blog 2017 (link will open in a new window or tab)
FitsSmallBusiness.com: Award for Best Small Business Blog 2016 (link will open in a new window or tab)

Footer

Big Ideas for Small Business logo

Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

Contact Us

[email protected]

(772) 492-9593

gacor maxwin situs slot thailand terpercaya situs slot gacor situs gacor akun pro thailand slot bandar togel terpercaya

Latest Tweets

bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 14

EntertainHR: Mission Possible—Keeping Employees Safe in Every Workplace - HR Daily Advisor https://bit.ly/3ZGiHgR #smallbusiness #safetyatwork #workplace #safe

Reply on Twitter 1944888439905591796 Retweet on Twitter 1944888439905591796 Like on Twitter 1944888439905591796 Twitter 1944888439905591796
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 14

This Common HSA Mistake Could Cost You Thousands of Dollars https://bit.ly/43ZPO1X

Reply on Twitter 1944842642124116361 Retweet on Twitter 1944842642124116361 Like on Twitter 1944842642124116361 Twitter 1944842642124116361
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 14

One Big Beautiful Bill: Checklist of Tax Changes for Small Businesses - #Smallbusiness needs to know what’s in the new law and take action https://bit.ly/44rK6EI #newlaw #legislation #taxes #taxchanges

Reply on Twitter 1944804373948698952 Retweet on Twitter 1944804373948698952 1 Like on Twitter 1944804373948698952 1 Twitter 1944804373948698952
Load More

Copyright © 2008–2025 Big Ideas for Small Business, Inc  |  Designed by Hudson Fusion

  • Privacy Policy
  • Sitemap