High inflation is hitting businesses and households hard in 2022.
Across the world, inflation is running high, due to unavoidable factors such as the Covid-19 pandemic, Russia – Ukraine conflict and global supply-chain disruptions.
You’ll see the effects of inflation at the supermarket and the fuel pump – and in your business.
Top 3 Trends to keep a close eye on:
1) Eroding each dollar’s buying power
Inflation increases prices, which eats away at the buying power of your dollar.
For business owners, that means you’ll encounter higher costs from your suppliers.
Materials are more expensive, transport has become far more costly, and basics from office supplies to utilities are all rising in price.
In addition, your staff are probably asking for pay rises.
For you and your employees to keep up with inflation, your income needs to increase by at least the same amount as inflation.
To achieve that could mean a seriously large wage bill increase for your business.
2) Rising Finance costs
Central banks try to keep inflation at a sustainable level.
They react to high inflation by raising their finance rates, which slows the economy and puts a handbrake on inflation.
As a business owner, you’ll see this reflected in a higher cost of borrowing.
Inflation does have some side-effects that could be positive for your business.
First, it tends to push up the value of big-ticket assets that your business might own, like property or plant.
Second, it makes debts seem smaller – your debt amount stays the same but hopefully your income rises.
3) It’s time to raise your prices
With inflation causing you to spend more, your business will also need to raise prices.
This is always a sensitive topic to tackle with clients and customers, but at least the way has been paved for you by prices rising across almost every single sector and industry.
If you’re wondering how much you need to increase prices in order to keep up with inflation or maintain your margins, do give us a call.
We can run the numbers, test out scenarios and figure out a the optimum Price Point “sweet spot” that will work for your business.
Learn more about how CFO Coach can help:
I help CEO’s earn higher ROI from FMCG Manufacturing Opportunities through Value Maximization on Profit & Cashflow so you can have the Next level of Success, Impact & Abundance.
About CFO Coach:
Discover the proven methodology that Powers Business Growth Opportunities, Profitability and Cashflow by delivering Outstanding Business Outcomes to position CEO’s, Entrepreneurs and Business Owners for Success as we Leverage our Experience, Expertise and Relationships.
DO YOU WANT TO HAVE A BUSINESS THAT GIVES YOU THE NEXT LEVEL OF SUCCESS, IMPACT AND ABUNDANCE?
Your ability to create a business that delivers the kind of life you truly desire hinges on your ability to think Strategically to help you generate more Value Creation Opportunities.
WHAT DO YOU NEED HELP WITH?
✔️ On Demand Virtual CFO
✔️ Strategic Leadership Advisory
✔️ Finance + Business Performance
✔️ Talent + Team Performance
✔️ Business Insights + Intelligence systems
✔️ Growth Opportunities + Advisory
✔️ Profit Maximization + Cashflow Optimization
✔️ Performance Tracking (KPI’s)
✔️ Business + Financial Models
✔️ Raising Debt or Equity Capital
✔️ Corporate Restructuring
✔️ Succession Planning
✔️ Creating a Freedom Lifestyle Business
WHAT IS OUR OFFER?
Our Signature solution, CFO Xcelerate Launchpad™ has been tried and tested to help CEO’s Optimize Cash Flow, Maximize Profit and Grow their Business & Impact
We’ll help you Xcelerate™ in a way you have never thought possible.
Insight Beyond Numbers™
✅Mentorship in Personal Productivity & Proficiency
✅Strategic Thinking Coaching
✅Strategic CEO Mindset Coaching
✅Emotional Intelligence (EQ) Coaching for CEO’s
Get access to the 3 Secret Strategies to Grow & Scale Your Business e-book
Join our Free Facebook Group
Free Complimentary Strategy Call
Ask me: To share my free e-book on Simplicity on Emotional Intelligence.
Coming up in 2022, my New ebooks on Emotional Intelligence for CEO’s, Mastering Emotions, Leadership Guides for C Suite executives and much more
𝗥𝗘𝗔𝗗𝗬 𝗧𝗢 XCELERATE?
👉 WANT TO KNOW MORE