Economic Ups and Downs Trap Business in an Endless Cycle
Inflation tests owners’ ability to keep profits and make a living
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Like an economic yo-yo, inflation sends prices soaring while an occasional stall or rare deflation eases costs. Small businesses are caught in the middle.
Pressure is on everyone to raise charges as broader markets see expenses for supplies surge up. Much as they would prefer, small-business owners wonder how — if at all — they can inflation-proof their companies.
That is top of mind for entrepreneurs such as Pavel Stepanov, who owns the virtual assistant company, VirtuDesk. It helps entrepreneurs, real estate agents and other professionals with marketing, prospecting, administration and more.
Stepanov talked with marketers Ivana Taylor and Iva Ignjatovic. They face common challenges in the small-business arena.
Taylor owns DIYMarketers, a company “committed to helping small business owners get out of overwhelm.” Ignjatovic is a marketing, strategy, leadership and business consultant.
All of them have felt the effects of cost creep and tried to manage it.
“The most common inflation impacts on small businesses include supply shortage, cost increase and a smaller profit,” Stepanov said.
“The Federal Reserve is projecting low inflation levels and wants to continue increasing interest rates throughout the next 12 months,” he said. “This is bad news for economic growth, especially for U.S. business owners.”
VirtuDesk compiled these debilitating inflation effects:
- Business cost increase
- Price increase
- Narrower profit
- Supply shortages
“We are glad to say that we haven’t seen any major impacts of inflation on our business so far,” Stepanov said. “It’s because of our business model. Outsourcing can save your business from the effects of…
