Today we’re broaching a topic that’s been on everybody’s minds, which is inflation. This is a crazy time we are living in, and it’s no different in the business environment. For the first time, the Federal Reserve has actually publicly warned that there is a mild recession. The prices we see increasing every day are a product of the inflation of the money supply.
The economy is slowing down, and inflation is coming up. This is a unique situation. Typically in an economy, you either have a lot of growth or you have inflation. Currently, we are experiencing both simultaneously.
What does this mean for the average business owner, and what can business owners do? There are a few strategies to consider. If you’re in the market for new equipment, you’ll want to compare old versus new, or maybe reconsider altogether when it comes to those big ticket items. You can always retool your business or consider restructuring. Look into new technologies that will support your business in a cost-effective way; technologies that could save you money.
Although the interest rates are not historically high, they are higher than they were a few years ago. If there is a slight dip in interest rates, consider locking that in and getting a fixed rate. This will help protect you in case rates increase again.
The rate increases could slow down, or possibly even reverse, but there is no specific timeline for that potential outcome. Your business will face financial challenges, but you can learn to manage them by preparing ahead of time and knowing what to do when your business faces adversity.
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