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- My advice for tariff-hit small businesses
Howdy Girdleyworld,
I’ve been thinking about tariffs a lot lately. It’s talked about a ton in my group chats. This is the best advice I keep hearing.
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My 5 pieces of advice for small businesses affected by the China tariffs
Don’t panic.
Every time you panic, you make bad decisions. Bad decisions cost you money.
These things aren’t going to kill you overnight. (And if they do… you were probably going to die anyway.)
Optimize for resilience.
One, get access to capital where you can — home equity line of credit, make sure your savings are liquid, turn investments into cash… this is the time.
Two, put your business in survival mode. Put expansion plans, big expenses, etc on hold.
Assume this is the new normal.
Trump says a lot of stuff and goes back on some of it. But in this case, they’ve made very few exceptions.
Plan for years of this — and if some of it gets fixed, that’s gravy for your business.
Raise prices.
Don’t be afraid to raise prices for your customers. This is happening to everybody, so they won’t be surprised.
I’ve heard many people say they’re scared they’ll lose customers. My experience is exactly the opposite. When people understand the “why” behind a price increase, they’ll step up and pay it.
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Talk to your suppliers.
You and your suppliers are on the same side: You both want to keep selling stuff in the US. So, reach out and see if they have any suggestions.
I’ve heard many conversations where people tell their suppliers, “Hey, we need to get our costs down 20-30%. Can you help us?”
It might be changing designs, reducing sizes, all sorts of stuff.
Figure out how to derisk your business in the long term.
Trump has fundamentally changed things forever.
So wise businesspeople are looking to derisk from having a single company or country as their import source.
Where else can you source your products?
And if you can find a place in the US… that’s what Trump wants. And when the US government wants something, they tend to get it.
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What do you think? Got a suggestion?
Hit reply and let me know.
Stuff to click on!
My new video: Why you should be on Twitter/X — and trust me, it’s not Elon.
We had a fun episode of Acquisitions Anonymous lately, looking at a carnival rental business going for $7m… so if giant inflatable octopus slides are your thing, check it out!
My company Near recently updated their 2025 Remote Hiring Guide. If you’re looking for top 1% talent at prices any small business can afford… check this out. Download it free here.
Thanks for reading!
Michael
P.S. I’ve got events coming up! Come say hi.
Funding Your SMB Acquisition, Thursday May 8th. Heather Endresen and I talk through the ins and outs of funding — and I’ll deliver my love letter to the SBA program. RSVP here!
The 3 Hottest Franchise Models in 2025, Thursday June 12th. Join Connor Groce and I as we break down the best working franchise models in each category. RSVP here!
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