And Why It’s a Wake-Up Call to Think Long-Term
With new tariffs back in the headlines, small business owners—especially those who import products or rely on global supply chains—need to pay attention.
Tariffs don’t just hit importers. They ripple across entire supply chains. Even if you don’t bring products in from overseas directly, your vendors or your vendors’ vendors might.
Here are six strategic actions every small business owner should consider now to stay ahead of potential cost increases—and what this moment might be telling you about your long-term plans.
1. Know Your Exposure
Start by mapping out your full supply chain. Do you source products from China or other overseas markets? Do any of your U.S.-based suppliers?
For example, a Tennessee furniture manufacturer may not import directly but relies on hardware from a supplier who does. Understanding your cost structure—including margins and raw material inputs—allows you to model how a tariff increase could affect your profitability.
2. Communicate with Your Customers
Don’t wait until you’re forced to raise prices. Transparency builds trust.
A Nashville-based retailer, for example, might explain to customers why certain products will gradually rise in price. By phasing in price adjustments, you avoid sudden shocks—or the need to borrow from a line of credit to absorb tariff-driven costs.
3. Hold Product Strategically
If you have the ability to hold inventory overseas or in a bonded U.S. warehouse, you may be able to wait out uncertainty. This flexibility can be the difference between overpaying and staying profitable if tariff timelines shift.
4. Sell Overseas Instead
Sometimes, it makes sense to redirect imported goods to international customers, avoiding U.S. tariffs altogether. For Tennessee businesses with export potential, this can open new revenue streams while sidestepping immediate tariff risk.
5. Explore Onshoring
Can you shift manufacturing or sourcing to the U.S.? It isn’t always possible, but in sectors like custom fabrication or food processing, Tennessee often has untapped capacity. Onshoring can mean more predictable costs and tighter quality control.
6. Diversify Your Suppliers
Tariffs or not, supplier diversification is always smart. Even if pricing is similar across the board today, building redundancy in multiple regions protects against political and logistical disruptions tomorrow.
What This Means for Business Owners
Tariffs are just one example of how fast the business environment can change.
If you’re a small business owner in Nashville, Clarksville, or Franklin, Tennessee, now is the time to think beyond short-term survival and toward long-term resilience.
Building that resilience isn’t just about staying afloat—it’s about increasing the value and marketability of your business.
✅ Businesses that can weather supply chain disruptions
✅ Businesses with strong margins and diversified suppliers
✅ Businesses with stable leadership and low owner dependency are more valuable and easier to sell.
That’s why this isn’t just a supply chain conversation—it’s also an exit strategy conversation.
A buyer doesn’t just want to see solid financials. They want to see that your business can withstand shocks—whether it’s tariffs, inflation, or labor shortages.
Conclusion
Tariffs may feel like a short-term challenge, but they’re really a reminder: you need to build a business that can weather storms. That means strengthening supply chains, improving margins, and—most importantly—reducing dependency on the owner.
Because when challenges like tariffs arise, the companies with strong leadership and systems don’t just survive—they thrive.