Stop the Tariff Squeeze: How Smart Business Owners Protect Profits in a Volatile Economy

Today’s business owners aren’t just dealing with headlines about tariffs—they’re facing real, mounting pressures from all directions: rising material costs, supply chain delays, labor shortages, and unexpected tax bills. While tariffs may lead the news cycle, they’re just one of many forces quietly tightening the profit margins of companies across industries. But here’s the truth: the businesses that thrive aren’t the ones with the biggest bank accounts or the flashiest products—they’re the ones that plan. If you’re running a business from $600K to $5M (or even beyond), and you’re feeling that squeeze, this post is your blueprint to protecting your bottom line.

Why Tariffs Aren’t Just a “Big Company” Problem

Even if you don’t import a single item, you’re likely feeling the ripple effects of tariffs. Vendors and suppliers pass on their increased costs to you—whether it’s lumber, electronics, packaging, or shipping. And it’s not always loud. Cost pressures don’t crash in like a storm; they sneak in slowly, silently eroding your margins.

Here’s what we’re seeing:

• Inventory delays stacking up at ports

• Material cost spikes of 15–25%

• Operational slowdowns affecting entire industries

And without preparation, most business owners fall into one of these three traps:

1. Waiting too long to react

2. Cutting the wrong things in panic

3. Relying only on rearview reporting (instead of future-focused strategy)

   
   

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Three Strategies That Actually Protect Profits

1. Forecast Smarter: Use What-If Planning

Think forecasting is just for Fortune 500s? Think again.

One client invested $120K in equipment based on a gut feeling. Six months later, they were short on payroll, delayed on invoices, and panicking. When we ran a few what-if scenarios—“What if costs rise 15%?” “What if a big client pays late?”—it became clear: one minor hiccup triggered a domino effect.

We realigned their cash flow, renegotiated terms, and implemented a monthly forecasting map. Result? Breathing room and control.

Takeaway: Forecasting isn’t predicting the future. It’s preparing for it.

2. Cut Smarter, Not Harder

Another client was hemorrhaging $37,000 a month in overtime. At first glance, it looked like a labor issue. But digging deeper revealed misaligned scheduling between sales and operations. Unrealistic promises were forcing the team into costly catch-up mode.

By aligning production and sales meetings, they cut overtime by 30% in just one month—without layoffs.

Takeaway: Efficiency gains often hide in your workflows, not in your payroll cuts.

3. Use Financial Structure as a Tool

A MedSpa owner had clean books and a solid CPA—but was overpaying the IRS by $47,000 annually. Why? Their financial lens was focused only on the past. Once we stepped in with forward-looking strategy:

• She legally hired her children

• Applied the Augusta Rule to rent her home to her business

• Restructured her entity to reduce self-employment tax

Result: $50,000+ in tax savings—and a plan she could stick to.

Takeaway: Don’t drive your business with just the rearview mirror. You need the windshield, too.

🎥 Watch the Full Webinar Recording

Want to hear it all straight from the source? You can now watch the full “Stop the Tariff Squeeze” webinar replay. In this session, Marina walks through each strategy in detail, shares live examples, answers real-time business owner questions, and breaks down the tools you can use immediately to protect your margins and plan with confidence.

Real Business Wins with Strategic CFO Thinking

These aren’t just theories. Here’s what happens when business owners take action:

• Manufacturer: Eliminated $37K/month in overtime by realigning schedules—saving nearly $500K annually

• Remodeling business: Grew from $1M to $3.5M by focusing only on high-margin services

• MedSpa owner: Saved $50K+ in taxes by leveraging legal deductions and smart structuring

• Logistics company: Scaled from $4M to $22M because they were structurally and financially prepared before COVID hit

  
  

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The 3-Step Framework to Profit Protection

Here’s the blueprint we walk every client through—regardless of industry or size:

Step 1: Identify Where You’re Exposed

Like a “You Are Here” map in a shopping mall, you need to know your pressure points before charting a course.

Ask:

• Where are you bleeding cash?

• Which vendors are at risk of raising prices?

• Are your margins flexible or razor-thin?

Step 2: Build a Monthly Map

Ditch the 42-tab spreadsheet. Instead, use a 1-page snapshot:

• Where you are (real numbers)

• What might shift (light forecasting)

• How to respond (what-if simulations)

This transforms your monthly reviews from reactive analysis into strategic decision-making.

Step 3: Use Strategy as Action

Structure your spending, legally reduce your tax liability, and make decisions based on numbers—not stress.

Use tools like:

• A scoreboard: visual dashboard of cash, margins, tax exposure

• A monthly action plan: clear, focused steps that adapt with your business

Simple, Legal, Underused Tax Strategies That Save Thousands

• Hire your kids: Save up to $28K/year in tax deductions—perfectly legal for sole proprietors and LLCs

• Use the Augusta Rule: Rent your home to your business for 14 days/year, tax-free

• Restructure your entity: Moving from sole prop to S-Corp can slash your self-employment tax by thousands

You don’t need to cut harder. You need to structure smarter.