When a major tech company like HP sees its stock plunge by 15%, it’s easy to think it doesn’t concern small businesses. But the truth is, moments like this offer powerful lessons for entrepreneurs navigating uncertainty, rising costs, and shifting market conditions.
HP recently reported its quarterly earnings: revenue was slightly above expectations, but profits and future projections came in below what investors hoped for. That led to an immediate dip in share value and a closer look at what caused the shortfall reveals challenges that even the smallest businesses can relate to.
HP’s Strategy Shift
Faced with increasing production expenses and evolving regulations, HP’s leadership quickly pivoted. The company has expanded its manufacturing across multiple countries, including Vietnam, India, Thailand, Mexico, and the U.S.. By mid-year, nearly all products sold in North America will be made outside their previous production hub.
CEO Enrique Lores explained that the company took these steps to control costs and remain competitive and expects to see improvements by the end of the year.
4 Key Takeaways for Small Business Owners
1. Rising Operational Costs Can Sneak Up on You
Whether it’s due to changes in logistics, supplier fees, or regulatory requirements, costs are always shifting. Build flexibility into your budget and don’t rely on today’s numbers staying the same tomorrow.
2. Diversify How and Where You Operate
Just like HP shifted its production locations, small businesses should think about diversifying suppliers, delivery channels, or even target markets. Relying too heavily on one method or partner can leave you vulnerable to sudden change.
3. Stay Agile, Even When It’s Hard
HP’s restructuring wasn’t cheap or easy. But inaction would have cost more. Small businesses need to regularly assess operations and ask: What can we simplify, cut, or rework to stay lean and competitive?
4. Communicate Clearly During Times of Change
HP was upfront about their earnings and performance. As a small business owner, you may face delays, pricing updates, or changes in service. Being honest with customers and team members keeps trust strong during tough periods.
Bottom Line: Adaptability = Survival
Small businesses don’t have billion-dollar buffers like HP. That’s why it’s even more important to stay informed, prepare for shifts, and act fast when costs rise or strategies stop working. What happens to major corporations often trickles down and being proactive today can save your business from big problems tomorrow.
