What You Need to Know to Survive Inflation!
Inflation is seriously affecting every part of the business world. From rising costs of materials, to increased wages, inflation can very quickly cause an out-of-control chain reaction in your company. What can you do not only to survive inflation but see success? There are a few essential things to know -
You Must Know Your Financials
What’s the impact of that wage increase? Do you have enough liquidity if that client doesn’t come through? What if material costs skyrocket? The only way to know the answers is to know your Financials. Financial reports are your friends; get to know them well and you’ll know what your business is capable of.
You Need to Know Your Plan NOW
A failure to plan is a plan for failure. You must know what the plan is before the emergency arrives. There will be unexpected occurrences beyond your control, but if you have the basics covered with a contingency plan, you can still be ready. For example, do you have a backup supplier in mind? Do you have a plan if you lose several clients unexpectedly? What if you lose part of your team? You probably didn’t have a plan for a pandemic, but the cascading effect hit customers, suppliers, and personnel. If a business had contingency plans for all these circumstances, they would have been in a much better place to weather 2020.
You Need to Allow for Flexibility
When your back is against a wall it’s hard to be flexible. But flexibility can be the difference between shutting your doors and thriving through the chaos. Be ready to move before you get stuck in a tight space. That means being aware of and adapting to a changing market. and It also means taking advantage of the resources you have now. Strengthen your financial position when things are good in case you need help in the future. You won’t be able to get an investment or a loan if you’re facing bankruptcy. Have it in your back pocket to call up if or when necessary.
There’s a lot to running a successful business. The more you know, the better prepared you will be to face inflation and whatever else comes your way. That’s why we invite you to enroll in one of our programs at brainSHARE.online. Learn what it takes to build the business of your dreams today!