بونوکس

برچسب: Simple

  • How AI Can Help You Cut Through Tariff Chaos — in Just 3 Simple Steps

    How AI Can Help You Cut Through Tariff Chaos — in Just 3 Simple Steps


    Opinions expressed by Entrepreneur contributors are their own.

    Since President Trump first announced new tariffs on U.S. trading partners in April, with frequent revisions ever since, American businesses of all sizes have been caught in a whirlwind of uncertainty. For entrepreneurs relying on foreign suppliers, sudden spikes in raw material costs can force a frantic reevaluation of longterm strategies and pricing models. These constantly shifting tariffs have upended months, even years, of planning across operations, production, supply chains, and competitive positioning, leaving many entrepreneurs stuck in near paralysis.

    Most imported products face a baseline duty of at least 10%, but that number is subject to change with little warning. Trump announced much larger reciprocal tariffs on dozens of countries in April before instituting a 90-day pause. Trump also raised tariffs on China to 145% before lowering them back to 30% for most Chinese goods for at least 90 days starting in May. To handle the tariff whiplash and survive in today’s volatile political and economic climate, you need to navigate constant uncertainty and adjust to frequent disruptions. If you’re not able to pivot quickly as changes arise, you may have to pass rising costs onto consumers, putting your business at risk of losing them entirely.

    Related: Walmart Is Raising Prices, According to the Company’s CEO. Here’s When.

    To stay ahead of these constant changes, business owners need to regularly explore a range of “what-if” scenarios. For example, if tariffs rise on a key supplier, how quickly should I adjust prices? Or, what are my options for switching to a supplier in a country with lower tariffs? With so many moving parts, AI can make this easier. Tools like ChatGPT make it simple to start using AI for financial modeling and supply chain analysis —helping you stay agile while navigating unpredictable tariffs.

    How small businesses can use AI for smarter scenario planning and future-proof decisions

    Earlier in my career, I helped large oil companies and financial institutions optimize their supply chains for better efficiency and lower costs. Traditionally, creating these models required complicated Excel spreadsheets and some proficiency in mathematics. Not only has AI made the modeling process more accessible, even for non-technical business owners, but it has also provided business owners with an essential tool for scenario planning that is adaptable in real time.

    Tariffs are fundamentally unpredictable, especially today, so AI can’t predict what tariffs will be tomorrow, next week or next month. It can, however, help your business prepare for the unknown and make smarter decisions faster by running dozens of those “what-if” scenarios in seconds. That’s why it’s best to understand and use AI as an optimization model instead of a one-time solution.

    Here’s how the optimization model works and how you can use it to build a pricing and procurement strategy that will help your business stay on top of 2025 tariffs:

    Step 1: Provide your AI tool with data

    Start by entering the key details into your AI tool—some of which your Large Language Model (LLM) may already know. An LLM is a type of AI that understands and creates human-like text by learning from vast amounts of writing.

    Include information like:

    • Current and projected tariff rates
    • Domestic and international costs of goods
    • Inventory holding periods
    • Revenue per unit

    This data is likely already available in your balance sheet, which you can quickly upload to your AI tool like ChatGPT or source through simple research. The AI’s goal is to optimize for a combination of these variables that yields the highest profitability at the lowest cost at any given point.

    Related: What Is a Tariff? Here’s an Overview of the Basics.

    Step 2: Use AI to model supply chain alternatives

    AI can scan trade databases and tariff announcements in real time, constantly updating teams in need. As tariffs fluctuate and updates are tracked, your optimization model will shift and evolve.

    For example, if tariffs rise and the cost of overseas products increases, you may look to purchase goods domestically and ask your AI system to recommend sourcing alternatives. AI can even compare the benefits, drawbacks and long-term implications of sourcing from various countries.

    While AI can’t provide specific pricing or shipping estimates, it drastically reduces the time it takes to evaluate new options. Once you find the rest of the information you need, by researching online or calling the suggested companies directly, feed it into your model to update your strategy in real-time.

    Step 3: Use AI to explore multiple scenarios and identify the best path forward

    Beyond just helping with sourcing decisions, AI can also recommend how much you can raise your prices to stay profitable without driving customers away. For example, your business might absorb a 5% to 10% tariff increase through modest price hikes, but a 15% increase could start to push customers away. AI can simulate different pricing strategies to help you find the perfect balance for your unique situation.

    Ask your AI tool questions such as:

    • How much would I lose if tariffs remain between 10% and 15% over the next 60 days?
    • When does buying from international suppliers become economically unviable?
    • How much would I need to raise prices if tariffs increase to 20%?
    • What’s the best price increase to keep my revenue steady while covering costs?

    AI can help pinpoint various thresholds and calculate your options. These actionable insights can be life-saving for businesses lacking the time, energy and resources for trial and error.

    Think of AI as a personal financial analyst that works around the clock and costs a fraction of a human hire. Regardless of your business, integrating AI into your operational toolkit and interacting with it daily can help you prepare for an unpredictable market.

    While the future of tariffs remains uncertain, their impact is very real today. Instead of freezing up from uncertainty or making hasty decisions, AI empowers business owners to stay proactive and ready for whatever comes next.

    Since President Trump first announced new tariffs on U.S. trading partners in April, with frequent revisions ever since, American businesses of all sizes have been caught in a whirlwind of uncertainty. For entrepreneurs relying on foreign suppliers, sudden spikes in raw material costs can force a frantic reevaluation of longterm strategies and pricing models. These constantly shifting tariffs have upended months, even years, of planning across operations, production, supply chains, and competitive positioning, leaving many entrepreneurs stuck in near paralysis.

    Most imported products face a baseline duty of at least 10%, but that number is subject to change with little warning. Trump announced much larger reciprocal tariffs on dozens of countries in April before instituting a 90-day pause. Trump also raised tariffs on China to 145% before lowering them back to 30% for most Chinese goods for at least 90 days starting in May. To handle the tariff whiplash and survive in today’s volatile political and economic climate, you need to navigate constant uncertainty and adjust to frequent disruptions. If you’re not able to pivot quickly as changes arise, you may have to pass rising costs onto consumers, putting your business at risk of losing them entirely.

    Related: Walmart Is Raising Prices, According to the Company’s CEO. Here’s When.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.



    Source link

  • How I Built a 7-Figure Business With This Simple Strategy

    How I Built a 7-Figure Business With This Simple Strategy


    Opinions expressed by Entrepreneur contributors are their own.

    One of the biggest mistakes entrepreneurs make is thinking they need to do everything themselves, or, even worse, thinking that hiring one “rockstar” full-time employee will solve every problem in their business (and if they do find this diamond in the rough, which is highly unlikely, they’re usually not in a position to hire and manage that person effectively). In my experience, I’ve found that success comes from not how you do it but who helps you do it, and a team of experts is the most effective way to get there.

    Today’s small business owners and solopreneurs are under more pressure than ever. The market is rapidly shifting, consumers are cautious about spending, and there’s a constant demand to stay visible and relevant in an increasingly crowded market. Entrepreneurs are expected to wear every hat, from visionary to strategist and social media manager, and still find time to grow their business. It’s insanity, isn’t it?

    After starting my business, I quickly realized that the most effective way for it to be successful was to bring on outside help. Through strategic outsourcing, I was able to grow my first business, the Boutique COO, to seven figures in under eight months.

    So, how do you know when it’s time to bring in outside help or where to even start? Here are four main steps to guide you.

    Related: How to Outsource Your Way to a $10-Million Business

    1. Stop trying to find your unicorn

    When most business owners realize they need help, their first instinct is to look for one full-time hire who can help manage ops, run their marketing campaigns, handle admin tasks and maybe even update the website and post on social media.

    That, my friends, is what we call a unicorn. They just don’t exist. And if they do, they’re either incredibly expensive or burned out from being pulled in a thousand directions. Plus, as a busy business owner who may not be comfortable with effective performance management or trained in it, you might not be able to best leverage your unicorn even if you found them.

    Early on in my business, I tried to find someone who could take a lot of things off my plate. I thought that if I could just find the right person, I’d be set. But in reality, no single human (including you) will be amazing at everything your business needs, and expecting them to be amazing is unfair.

    The better and smarter approach is to build a dream team of specialists who each do what they’re great at. Hire a bookkeeper who has a penchant for numbers. Bring on a virtual assistant who gets giddy about organization. Add a marketing specialist who loves to write. When everyone is working in their zone of genius and gets in their flow state, the quality of work skyrockets. The natural result is authentic and much more sustainable business growth.

    It’s also more cost-effective and less risky. Instead of paying a full-time salary plus benefits for one person, you can outsource even just a few ad hoc hours at a time for highly skilled support in each important area of your business. This way, you aren’t betting your business on a single person — and you get better results, spend less money and free up your own time. It’s a win-win.

    2. Identify the workload, not the title

    Before you start outsourcing, you need to stop thinking in terms of job titles. You don’t need a COO or a marketing manager (not yet, at least). What you do need is clarity on what tasks are taking up most of your time.

    Related: What You Need to Know Before Hiring Independent Contractors

    When I talk to clients whose businesses are taking off, I do a quick audit. I look at where they spend the most time and what drains their energy. If something is time-consuming and doesn’t provide much impact, that is a big red flag that the task either needs to be discontinued entirely or outsourced. Think in terms of categories that don’t necessarily contribute to revenue growth, like admin, onboarding new clients, invoicing and bookkeeping or the ever-dreaded payroll.

    Here’s a general rule: If your plate is full and you’re spending more than three to five hours a week on something that doesn’t require your specific expertise, outsource it.

    Related: Your Time is Money, Start Saving It By Outsourcing

    3. Decide what to outsource first

    Think about the tasks that don’t directly generate revenue or that someone else could do better and faster than you can.

    For most entrepreneurs, this includes tasks like

    • Scheduling and calendar management

    • Invoicing and payments

    • Emailing newsletters and planning social media

    • Doing basic admin, such as organizing files and documents

    When I first started outsourcing, I handed off two things that took a big chunk of my time but didn’t actually need my time: scheduling and inbox management. It was a small change, but the impact was massive. Not only did I gain back time during the week, but I also felt mentally clear enough to focus on strategies to grow my business.

    4. Set your contractors up for success

    Hiring help is just the first step. Being a good leader is what makes a huge difference.

    My non-negotiables: Be specific about expectations, and make your onboarding process crystal clear. Give your contractors access to the shared tools you use so they have everything they need to get started. At the Boutique COO and our new sister company, Brick by Brick Collective, we’re big fans of Notion and Paymo, and we basically live in Slack.

    Set up regular check-ins, especially during onboarding. Plan time to train contractors and give them feedback early on. Set clear goals and expectations. Your best hire will still feel ineffective if you aren’t investing in getting them ramped up.

    Be prepared to accept that things will be done 80% to 90% of the way you’d do it. If you expect someone to do something exactly how you’d do it, you are not weighing the benefit of outsourcing with the small cost of things not being exactly “perfect.” Remember, if you hire someone to clean your house or mow your lawn, you wouldn’t be complaining if they folded your clothes slightly differently than you do or if they did yardwork in a slightly different order.

    These tips have been instrumental in my growing a seven-figure business in under eight months, starting two new businesses and bringing on almost 150 team members without sacrificing my sanity.

    Related: What Not to Do When Outsourcing

    Do more with less, and build bigger than you’d thought possible

    Ultimately, it’s about asking a better question:

    Not “How can I get this done?” but “Who can help me get it done?” and “Who do I need to be to enable those people best?”

    If you’re truly ready to grow, pick one task you’re doing regularly that doesn’t require you to do it, and find someone to take it off your plate this week. You’ll be surprised at how much that tiny shift opens up everything else for you.

    Outsourcing is a strategy that, when done with intention, can be one of the most powerful ways to do more for your business and keep your clients (and you!) happy.



    Source link