READER’S POLL: How Confident Are You That Your Business Will Thrive in the Midst of Inflation?
Inflation is a natural part of any economy. Oftentimes, a small amount of inflation (around 2%) can even be healthy. In fact, famed economist, John Maynard Keynes once said, “Some inflation helps prevent the paradox of thrift.” In other words, saving without enough spending can actually harm economic growth. The past two years have proven to be challenging for many. Undoubtedly, your own costs have increased over this period. And as inflation continues to rise (6.2% through the month of October 2021), consumers can become a little more hesitant to part with their money. So, what can you do to try to shield your business from damaging inflationary rates?
If you answered…
“Not at all confident.”
Without having effective risk management strategies in place, your business is open to problems caused by external conditions. With a robust legal department that maintains and updates all contracts, agreements, and insurance coverages, you could shield yourself and your business from many external risk factors. But what about the risks associated with inflation? Your personal investments could be the first step in preparing to thrive during inflationary times.
“I’m better prepared for external threats because of COVID but I still have some work to do to shield my business from inflation.”
Many business owners have learned a great deal about risk mitigation from weathering the COVID pandemic. We’re glad to hear you’ve made strides toward de-risking your business and that you’ve recognized there’s still work that needs to be done. However, now’s the time to reexamine your fees and pricing to ensure that you’re still able to send revenues to the bottom line.
“I’m very confident. My business has undergone a regular legal review, I’ve stockpiled cash, and I’ve adjusted our pricing strategies.”
We are thrilled to learn you’re doing so much to protect your greatest asset… your business! But be careful not to grow complacent. There are always going to be unexpected threats to your business. Now’s the time to work with your advisory board to work through SWOT analyses, legal reviews, and to speak with your financial advisor about how rising inflationary rates might impact your wealth gap.
Business ownership requires so much of you. Not only do you have to control what takes place within your four walls, but you must also work proactively to prepare for a variety of external factors. Taking time to work on your business, employing many risk mitigation strategies, could be the difference between merely surviving the next disaster and thriving. Reach out to our team to learn more about how we could help.