00:00 Brad
What are the three main ways that tariffs can impact small businesses?
00:06 Elizabeth
Howdy, Brad. Well, the first thing is just core costs. I’m very concerned about the day-to-day operations of small businesses. If you think about the costs of foodstuffs going up at your cafe, you’re gonna have a really hard time keeping those prices correct. The other is uncertainty around financial planning. Uh, most small businesses have about three months of cash in the bank, so it is hard for them to plan when there’s this much uncertainty. And then finally, no one engages with consumers as much as a small business. Consumers are used to consistent pricing. So they’re gonna have some frustration and confusion with those consumers. So we’re really concerned for them.
00:56 Brad
What can small businesses do to protect themselves from tariff uncertainty?
01:03 Elizabeth
You know, I never thought I’d be the one to say slow your growth down, but we have to keep some cash in the bank right now with this uncertainty, with prices going up and down. So slow a little bit down. Let’s make sure that we don’t make that hire unless we really need to. We don’t purchase that new oven. So that’s one. I think second, being honest with your customers, really saying, “Look, your price of your cup of coffee is going up here is why, I had to pass this along to you.” That way they’re not thinking that you’re gouging them. And then finally, there’s always money where you can find it in your own hand. So cut costs where you can, really look at your P&L and see if you can conserve some of your own money in your bank account.
02:06 Brad
All right, so for all the entrepreneurs out there and the small business hopefuls, what advice would you give to someone who is looking to start a small business in this environment?
02:22 Elizabeth
Well, you’ll always hear me say, Brad, that you should start. Jump in, go for it. Just be a bit conservative. Know that you should probably have a little bit more money in the bank than I would normally tell you to start that business. Look at other financial tools, like opening a line of credit in case costs do go up. Maybe be a little slower in those hires. So, but always jump in. The American dream is still here. We are still on Main Street.
02:58 Brad
Elizabeth, thanks so much for taking the time here with us today. Appreciate it.
03:03 Elizabeth
Thanks, Brad.