Between July and October, it has been reported that Google searches for inflation increased by more than 1000% compared to the same period last year, and have overtaken searches for Coronavirus, which had been one of the most searched topics since the pandemic began in late 2019.
Rising inflation is currently top of the list for people’s concerns in twelve countries worldwide, and 71% of business owners say rising inflation is impacting their business.
For businesses, inflation can have a damaging impact on company profits if it is not managed properly.
Here at Pegasus, we have considered the six key areas of focus for any business during this challenging period.
We encourage you to review every area of your costs to see where they could be reduced, become pedantic about ROI and leave no stone unturned. In fact, we’ve got a whole blog post on reducing costs here.
It’s time to get stuck into your market and products and explore every area on a granular level to discover growth segments which could offset those which might not be performing as well. Try to focus on areas that provide the best ROI and streamline your offering to improve efficiency.
Unfortunately, although it is not ideal, you may have no choice but to increase your prices, because the longer the time between your increased costs and a price rise, the greater the risk to your bottom line.
You may be raising your eyebrows at this one, but investing capital is not as counter intuitive as it seems because equipping your business with good technology will help you run your business more efficiently and productively.
Encourage your team to connect with customers to discover the pain points and how you could assist them.
In times of economic struggle, marketing is one of the first areas that a business looks to cut, but you need to stay there and keep being seen. Instead of cutting marketing activity altogether, it may be an opportunity to review your strategy and explore smarter ways of reaching your audience.
While there is no uncertainty about the challenging conditions facing businesses at present, we are confident that with the right management, your business can weather this storm. Continuously reviewing your costs, exploring your market for new opportunities, and equipping your business with technology to drive efficiency are just some of the ways you can overcome the impact of inflation.
For more information about how our award-winning ERP software, Opera 3, can help you drive productivity and efficiency to overcome the impact of inflation, please contact us today.
Posted On: November 09, 2022
