What Can 90% of American Business Do About the Tariff Problems Landing in Their Laps?

Small and medium-sized businesses (SMBs) across the U.S. are grappling with unprecedented challenges due to escalating tariffs, particularly the recent 145% levy on Chinese imports. These measures have led to stranded goods, canceled orders, and soaring costs, pushing many to the brink of collapse. ​

While Fortune 500 companies can afford to hire large consulting firms to navigate these complexities, 90% of our businesses lack the resources for such extensive support. They are, in effect, left empty-handed. They are the most vulnerable to the friction. Think about that. What does it mean when 90% of our businesses are vulnerable? Not. Good.​

How Hard Is It Hitting SMBs?

The impact is severe. (Source links below)

WS Game Co. (Massachusetts) WS Game Co., a family-owned business known for its deluxe editions of Hasbro board games, has encountered significant challenges. The company has $500,000 worth of inventory stranded in China and has lost $16 million in orders from major U.S. retailers. Owner Jonathan Silva expressed concerns about the company's viability, stating they have approximately a four-month runway to stay afloat if conditions don't improve. ​

TeaHaus (Michigan) TeaHaus, a specialty tea shop in Ann Arbor, is grappling with increased costs due to the tariffs. Owner Lisa McDonald imports loose-leaf tea from various countries, including China. She highlighted the difficulty in passing on the increased costs to consumers, noting that while her premium teas can cost up to $33 for a 50-gram bag, raising prices further may not be feasible. ​

4Knines (Oklahoma City) 4Knines, a company specializing in vehicle seat covers and cargo liners for dog owners, relies on raw materials such as fabric and components from China. Owner Jim Umlauf reported that the new tariffs have made it nearly impossible to sustain operations, with limited inventory left and profit margins severely squeezed. Despite efforts to find alternative manufacturing options since 2018, the company continues to face significant challenges. ​

Now add 33M other businesses and that's the size of the problem. Every single one is shorthanded in dealing with the challenges, simply due to their size.

Exploring Fractional Executive Solutions

In this challenging environment, SMBs need access to experienced professionals who can help them navigate through it. Fractional executives—seasoned professionals offering part-time leadership—can provide critical support to SMBs during these uncertain times. They offer high-level expertise without the commitment and cost of full-time executives.​

They even come in advisory bundles. https://oracle-council-2gtntsh.gamma.site. So while you can't access full time talent or Big Consulting, this population is easy to tap into.

Options for Engaging Fractional Executives

SMBs have several avenues to access fractional executive talent:​

• The Oracle Council: Offers structured half-day think tanks, bringing together 3 to 7 experts selected based on the client's specific needs. Sessions include in-depth discussions to understand challenges, followed by collaborative efforts to develop actionable recommendations. A follow-up report is delivered the next day, outlining key insights and strategic recommendations.​ Rob Smith

• Fractionals United: A free community for current and aspiring fractional leaders to connect, collaborate, and learn from each other. Businesses can post their needs to this growing community to find suitable fractional leaders.​ Karina Mikhli

• The Fractional Directory: A platform helping CEOs and founders to directly search and enquire after fractional talent to include in their leadership bench. It surfaces publicly listed fractional leaders operating on LinkedIn within various regions.​ Michelle Allbon

Conclusion

While SMBs may not have the budget to bring in big consulting firms, they do have access to the expertise they need through fractional executive solutions. By leveraging the experience of fractional executives, SMBs can develop strategic plans to mitigate the impact of tariffs and navigate the complexities of the current economic landscape.​

For more information on engaging fractional executives, consider exploring resources like The Oracle Council, Fractionals United, and The Fractional Directory.​

Oracle Council: https://oracle-council-2gtntsh.gamma.site

Sources: https://apnews.com/article/china-tariffs-small-business-economy-imports-7bc7a0d07ddac551b3b24a5e477ccb0c