SMB Guide To Managing Market Challenges

Tariffs may come in waves—some hitting now, others merely delayed—but the disruption they cause is very real. For many small and midsize businesses (SMBs), even the threat of new tariffs is enough to send operations scrambling. As global trade grows increasingly unpredictable, it's clear that tariffs are just part of the story. Geopolitical instability and rapid policy shifts have made one thing certain: disruption is no longer a regional issue—it's reshaping the global economy.

Your business’s future isn’t getting any easier to predict. If you're an SMB, you can’t afford to just react anymore—you’ve got to stay ahead.

As Laura Baumann, VP of product management at ECI, explained in a recent webinar, “Tariffs can create a cascade of problems from inventory issues to increased costs, ultimately impacting a business’s ability to compete. While we can’t necessarily control external factors like tariffs, we can control how we respond to them.

Companies that embrace automation, lean processes, and innovations will thrive in this evolving landscape. By focusing on these areas—protection, growth, investment, supply chain resilience, and smart adaptation—we can build a stronger future. It's an opportunity to not just compete but to lead in the global market.

That response starts with building agility directly into your business; technology is the backbone.

The expanding scope of disruption and the secret to resilience

Tariffs may have sparked the latest wave of market anxiety, but they’re just one of many disruptions businesses face.

In just the past five years, we have experienced global pandemics, supply chain disruptions, and a war, to name a few, and the threat landscape continues to evolve. What ties all of it together is unpredictability. Disruption has become part of the environment—ongoing, escalating, and unavoidable.

That’s why many businesses turn to strong ERP solutions to stay resilient during difficult times. ERP isn’t just a back-end solution—it’s your engine for staying proactive. After all, it stands for “enterprise resource planning” so planning your resources is at its core.

These systems pull all your core operations into one system—sales, inventory, finance, supply chain, service, the whole thing—so you can have a level of visibility and control within your business that is inaccessible with manual processes. It allows you to be resilient, to see quickly the impact that changes are making on the business and make smarter calls when things get messy.

Why SMBs feel the impact more deeply

Unlike industry giants, SMBs have fewer resources to shield themselves from sudden shocks. They often operate with smaller teams, tighter cash flows, and fewer alternative suppliers. That leaves them particularly exposed when costs spike or delivery timelines shift overnight.

When it comes to the potential disruption on top of our minds today, tariffs, the potential increase could mean that SMBs will experience:

• Higher operational costs - Tariffs function as taxes on imports, directly increasing expenses for businesses reliant on foreign materials.
• Supply chain disruption - SMBs reliant on imports face delays and scarcity. Businesses struggle to find domestic alternatives for goods and often lack buying power with suppliers compared to large enterprises.
• Pricing pressures and customer pushback – Typically unable to absorb these tariff costs, SMBs may need to raise prices, which risks alienating customers already strained by inflation. "Pricing out of the market" is a common concern.
• Reduced competitiveness – Regulatorily tariffs hurt SMBs that export goods, causing some to consider relocating operations overseas to avoid those costs.
• Legal challenges - Some businesses are suing, arguing tariffs exceed presidential authority.

Without the right technology or planning in place, these shocks can hit even harder.

How ERP builds resilience

To go from reacting to challenges to being ready for them, SMBs need more than just a plan—they need the right tools. Businesses relying on manual processes or disconnected tools often lack the foresight to respond strategically. Many are blindsided not by the disruption itself—but by their inability to see it coming.

ERP software provides that foundation by connecting every part of your business into a single system. With real-time data and integrated insights of your entire business, you can make faster, more informed decisions, especially as it relates to emerging risks.

ERP enables leaders to model “what-if” scenarios, respond to market shifts, and switch suppliers with less friction. You can adjust prices on the fly or forecast the impact of a new regulation before it cuts into your margins.

An ERP houses a massive amount of data, so it is important to have the ability to easily understand what that information is telling you, like potential roadblocks before they happen. This clarity extends to inventory as well. Instead of guessing and risking overstock or shortages, ERP allows you to align your supply levels with actual demand and market signals. Since everyone’s working from the same system, cross-functional teams—from sales to distribution—can stay aligned when speed and accuracy matter most.

What you can do today

There’s no playbook for the next big disruption—but there are things you can do right now to get your business ready for whatever comes next.

Start by identifying weak points in your operations. Where is data fragmented? Where are processes still manual? Single-purpose tools might be working fine in isolation, but without integration, you may be flying blind.

Once you know where the issues are, either find an industry-specific ERP to help you or optimize how you are using your ERP to create a response plan. What happens if a supplier fails? Who needs to act if pricing shifts? Mapping out contingency steps now can save you time, money, and stress later.

Finally, make sure your team is prepared. As Baumann put it, “Small changes can make a big difference. When you’re facing cost pressures like tariffs, every bit of efficiency counts.”

So, train your team on your systems so they can react quickly and confidently when disruption hits.

Conclusion

The next disruption isn’t a matter of if—it’s when. Whether it’s tariffs, extreme weather, or new regulations, the difference between getting by and staying ahead comes down to how ready your systems and people are to handle change quickly and clearly.

ERP isn’t just a back-office tool anymore—it’s your first line of defense when things get uncertain. It gives you what you need to adjust, improve, and react in real time. That means turning messy challenges into chances to grow—and keeping your business in a strong position, no matter what’s around the corner.