In this article for Entrepreneur, CIC Services’ Randy Sadler dives into how business disruptions like trade wars, tariffs, and trade sanctions caused by global politics can affect a company’s bottom line. He describes ways businesses can offset these by increasing prices, absorbing the costs, switching suppliers, or insuring against them with captive insurance.
Strategies to Plan for Potential Business Threats
- Eat the cost of the tariff and take a profit hit.
- Pass the cost onto the consumer.
- Insure against the risk of a trade war.
- Decide whether to exit a market/category or find a supplier not subject to tariffs.