If you were an investor in today’s market, you could potentially limit your losses through a strategy known as “hedging”. But if you’re an entrepreneur, the pathways to hedge your bet might not be as clear as simply buying the most appropriate option against your initial investment. But there are ways to hedge your business that can help minimize your overall risk while keeping you afloat during difficult times. You might just be surprised to hear that social media marketing plays a key role!
First off, what does it mean to “hedge your position” in the first place? “Hedging” is a common tactic used by many different investors to reduce their overall risk in any particular position. This is usually manifested in buying some sort of option that goes against your initial position, which while reducing your overall return, also lowers the maximum amount of loss you would incur.
In the world of finance, there are many ways to calculate the best hedge against any particular bet that admittedly gets overly complicated at the best of times. In real-world settings, hedging is actually pretty commonly seen in the insurance you take out on your business. Insurance policies help you mitigate risks that are associated with theft, damage, loss, and even insolvency.
But with issues like inflation, hedges through insurance won’t be able to recoup your losses. With social media marketing, you just might be able to ride out sharp spikes in inflation.
It’s no surprise to see the state of the world in such disarray after so many tumultuous events in just the past few years. From sudden shifts in global politics to the domino-like effect that supply chain disruptions can have on your business, a proper strategy is required to get ahead of any issues you might face, especially with the recent up-turn in costs due to inflation.
One key way to hedge against inflation and the like is through further bolstering your marketing efforts. While there is a pretty in-depth discussion on the disparities that occur within sales and marketing initiatives, marketing (especially social media marketing) can be a powerful tool in getting to the right people at the right time.
In fact, almost 60% of all internet searches now occur on mobile devices and roughly 83% of all B2Bs utilize some form of social media marketing to help keep their relevance with their customers. Despite marketing costs carving out some of that earned income from your business operations, it performs a hedge against inflation by keeping your business top of mind for the exact type of customers you need.
A large chunk of social media marketing is focused on content development surrounding your products and services. Business owners realize that during times of difficulties, it’s important to adjust your marketing strategy accordingly (and at times even increase your budget for it).
But a challenge in why many business owners don’t necessarily see this is that they aren’t even sure where to start. That’s why ensuring you have the best resources at your disposal will be key to ensuring this hedge works properly.
Similar to a good hedge in any financial market, any hedge done in the real world will need to be informed by the best ways to circumvent the exact risks you might be facing.
How then, do we make sure that we hedge properly through marketing? By reaching out to the type of specialists that work with these platforms regularly. Just like how a good investor seeks out advice from financial specialists, a good business owner seeks out advice from marketing experts. In fact, the prevailing trend is that over half of all the B2B industry outsources their marketing to third parties, with medium to large size companies appreciating the importance of doing so even more.
You’ll need a tailor-crafted solution that works best with your business, whether it be complimenting your social media marketing with cold emails, paid advertising, SEO, or more. So reach out to a business specialist and see how you can begin hedging your business in the face of inflation and other economic turns today.