6 Strategies for Founders to Beat Rising Tariffs

If there's one thing I’ve learned working with founders and growth-stage companies, it’s this: the only constant is change. And sometimes, that change hits your bottom line like a freight train.

Over the past few months, I’ve heard the same concern from multiple clients: “Have you seen what’s happening with tariffs?” Yes, I have. And if you’re importing materials, parts, or finished goods, you’re probably already feeling the pressure. For many small and midsize businesses, rising tariffs aren’t just an annoyance. They’re a full-on margin buster.

So, how do you prepare for something that feels outside of your control? You plan for it.

Here’s a truth bomb I wish more founders embraced early on: scenario planning and risk modeling aren’t luxuries. They’re lifelines. Even at the $1M revenue mark. Especially then.

Let me walk you through a recent conversation I had with a founder of a consumer goods brand. We’ll call her Jess. Jess’s company was on a rocketship, tripling revenue year over year. But when her cost of goods started creeping up due to tariff hikes on imported components, her margins shrank fast. By the time she reached out to me, she was two months away from breakeven turning into break-even-at-best.

We got to work immediately, mapping out “what if” scenarios: What if tariffs increase by 10% more? What if a key supplier raises prices? What if we diversify sourcing? What’s the cost and timeline?

Within a week, Jess had not just one contingency plan, but three. Her team wasn’t flying blind anymore. They were making data-informed decisions in real time.

If you don’t have a plan B (or C), now’s the time to build one. Here are six things I recommend every founder do right now to prepare for revenue or margin shocks like tariffs:

1. Know Your Break-Even Point

Sounds simple, but many founders can’t tell me their current break-even revenue. You need to know exactly how much you need to sell to cover your fixed and variable costs, especially as those costs fluctuate. Don’t just rely on last quarter’s numbers. Recalculate monthly if you're experiencing price volatility.

2. Model Best, Base, and Worst-Case Scenarios

Use a simple spreadsheet if you have to. This doesn’t need to be a 30-tab financial model. What happens if your cost of goods goes up 15%? What if sales drop by 20% due to pricing increases? Understanding these impacts ahead of time helps you pivot faster and make proactive decisions rather than reactive ones.

3. Identify Levers You Can Pull

When margin pressure hits, what can you tweak? Prices? Payment terms? Product mix? Jess, the founder I mentioned earlier, realized she could bundle high-margin items with her bestsellers to boost average order value and protect profitability. Small adjustments like this, multiplied over hundreds of transactions, can make a big difference.

4. Stress-Test Your Supply Chain

Don’t assume your current vendors will be able to keep prices steady or fulfill orders if tariffs escalate. Talk to them now. Get quotes from alternate suppliers in other regions. Diversifying your supplier base, even partially, can buffer you against geopolitical curveballs.

5. Revisit Your Pricing Strategy

Many founders hesitate to raise prices, fearing customer backlash. But if your costs are going up and you’re not adjusting pricing, you’re eating the difference. Look at your competitors. If everyone’s raising prices, you won’t be the odd one out. Transparency with customers can also go a long way. They understand that inflation and policy shifts impact small businesses, too.

6. Build a Risk-Ready Finance Function

This is where I come in. Having a fractional controller or CFO on your side can help you forecast more accurately, monitor margins, and build financial resilience. If your systems can’t generate up-to-date reporting, or if you’re making big decisions based on gut instinct alone, it’s time to invest in better tools and advisory support. (Here’s a free self-assessment to get you started.)

Don’t Wait for the Crisis

The businesses that survive shocks like tariff hikes aren’t the ones with the biggest bank accounts. They’re the ones with plans. Scenario planning isn’t about predicting the future. It’s about building confidence in your ability to navigate it.

If you’re unsure where to start, I’d be happy to help you walk through a quick risk audit and build a scenario model tailored to your business. You don’t need a full-time CFO to do this. You just need a steady hand. Learn more about how we help founders like you future-proof their finances at SteadyHand Accounting & Advisory.