Global economic changes and unexpected events don't just affect large corporations. Issues like new tariffs, inflation, and unexpected disruptions can hit small businesses just as hard, if not harder. Unlike large corporations, they don’t have the deep pockets or massive safety nets to rely on.

When volatility strikes, it can feel like a punch to the gut. Growth plans stall, expenses tighten, and every decision suddenly feels high-stakes. In fact, as Remote points out, uncertain times often force businesses to make tough calls and compromises they would rather avoid.

But you won’t have to do any of those if you prepare your small business for potential global volatility. Here, we’ll share a few tips that can help you transform volatility from a threat into an opportunity to build a more resilient and profitable operation.

#1 Look Beyond U.S. Borders

While the U.S. market is vast, the world is waiting for you. A striking 96% of the world's consumers live outside of the United States. Tapping into these international markets is easier when you have the right support.

The U.S. Small Business Administration (SBA) and its partners provide free or low-cost assistance to help businesses with international trade. The U.S. Export Assistance Centers (USEACs), for instance, offer expert guidance on developing a global strategy and overcoming market access barriers.

To give your brand credibility overseas, consider hiring local talent. Don’t worry about managing payroll, benefits, and compliance for international employees. A global payroll management service simplifies everything from currency conversions and benefits to local tax regulations. You stay compliant while attracting the best talent.

Remote, a global HR and payroll platform, explains, “A global payroll solution typically acts as an extension of your own HR or legal department. With global payroll services, you can outsource payroll processes, benefits administration, and certain aspects of compliance.”

#2 Strengthen Relationships With Customers

Keeping a customer is a far more efficient and profitable strategy than constantly seeking new ones. During economic downturns, customers become more selective with their money, making your existing loyal base a stable and valuable asset.

A well-designed loyalty program can help strengthen your relationship with customers and encourage repeat purchases. A recent EY Loyalty Market study found that a whopping 58% of consumers surveyed said they spend more with brands that have a loyalty program.

You can have points-based and tiered programs, or include value-based and subscription programs.

Make sure to offer excellent customer service. It’s a key factor in whether a customer becomes a long-term fan or switches to a competitor. Train your team to be experts and give them the power to make great decisions for your customers. This helps create amazing, memorable experiences every single time.

It's also important to get to know your customers personally. People are tired of generic, one-size-fits-all experiences and want to feel understood and valued. Basic data collection and analysis can help your business stand out by delivering tailored experiences, such as sending targeted promotions.

#3 Diversify Your Supply Chain

Global instability, from geopolitical tensions to natural disasters, can have a severe impact on a business’ supply chain. Relying on a single supplier is a major risk. This vulnerability is known as single-supplier syndrome. When a single point of failure exists, a disruption can halt an entire operation.

The Suez Canal blockage in 2021 is a good example. On March 23, the container ship Ever Given ran aground, blocking the crucial waterway for six days. This single incident affected over 400 vessels and caused a massive ripple effect throughout global trade.

To mitigate this risk, one of the most effective strategies is to diversify your operations. Diversifying your sourcing, production, and logistics across multiple regions is one of the most effective ways to mitigate this risk.

A great way to begin is by starting with local sourcing, which can provide a valuable buffer against large-scale global disruptions. Sourcing from suppliers within 100 miles of your operation can significantly reduce shipping costs and time.

Other smart strategies for diversification include nearshoring and friendshoring. Nearshoring involves relocating sourcing to nearby countries like Mexico or Canada. This can speed up delivery times and leverage existing trade agreements. Friendshoring means sourcing from politically stable allies. This reduces the risk of sudden tariffs linked to diplomatic disputes.

A Culture of Preparedness

Global volatility might be outside of your control, but how you prepare for it isn’t. You can turn unpredictability into an opportunity for growth with these strategies.

As a last piece of advice, don’t forget to build a cash reserve to cover at least three to six months of expenses. This provides the necessary buffer to navigate unexpected disruptions.

Don’t wait for the storm to hit before you act. Start now; the more proactive you are today, the more resilient your small business will be tomorrow.