Hi there,
This week's VIP Franchise Newsletter is a bit different.
That's because it's focused on helping franchisees. People already in business. Even those about to be in business. The topic?
Trump's Tariffs-And How To Deal With Them
With new tariffs affecting supply costs, and more, franchisees need practical solutions to stay profitable. Here's how I think you can adapt:
5 Smart Ways Franchisees Can Navigate Trump's Tariffs
1. Find local suppliers instead of relying on imported goods. This cuts tariff costs and builds relationships with nearby businesses.
2. Ask your franchisor to adjust pricing carefully - customers understand global issues; encourage your franchisor to be strategic about which costs to pass along to you and your local customers.
3. Ask your franchisor to get more aggressive with regards to bulk purchasing to lower everybody's costs. And talk to your fellow local franchisees to see if you can find a way to buy some products together-in bulk.
4. Rethink your cash flow strategy. See if you can restructure payment terms, improve cash reserves, and explore financing options that provide flexibility during these times of seriously fluctuating costs do to tariffs.
5. Encourage your franchisor to create new revenue streams less affected by tariffs - like adding services that customers will love.
Bottom line?
Nobody knows how long these dumb tariffs will last, or how they'll hit your franchise business, long-term.
That's why this is the time to communicate with headquarters...a lot. Ask for their help. Offer suggestions. And ask them to get creative, so Trump's Tariffs will have a minimal effect on your business and your livelihood.
I hope that helps!
Next, I'd like to remind you that I've created a few Franchise calculators.
All 3 of them are free to use, so go try them! They'll help you put things into perspective, numbers-wise. You can find them here.
Till next time,
The Franchise King®
Joel Libava
216-831-2610
"As history has repeatedly proven, one trade tariff begets another, then another - until you've got a full-blown trade war. No one ever wins, and consumers always get screwed."
- Mark McKinnon
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