It is here, and it is historic. Inflation has reached dizzying heights over the last few months, as across the country the cost of nearly everything has spiked amid an uncertain and complex pandemic recovery. It is especially important for business owners and independent contractors to guard themselves against the threat of inflation, with some investments and purchases that are much more sound than others during this time.
Here are a few ways to protect your business against inflation:
Lock in Contracts
Get in touch with vendors or suppliers to see if you can lower your real costs by holding those expenses steady. As the value of the dollar drops, your longer-term agreements will become more favorable. Almost anything that holds your expenses flat could be a good investment today.
Whether it is something smaller like office supplies or something bigger like a furniture or tech computer upgrade, buying now will save you money in the long run. Many of these items will also hold their value in the medium term, and are likely to become even more expensive the longer you wait.
Strengthen Your Value Proposition
Your clients and employees are more likely to focus on the bottom line, regardless of other factors, when inflation is high. But rather than instantly trying to become more attractive by cutting into your own margins, instead find ways to stand out, focusing on other ways you can add value. Emphasize things like stability, experience and loyalty—values that will also be appealing during turbulent times.
One thing that you may not have a lot of, but is something that will maintain its value is your time. Any way that you can streamline your schedule, your routine or your everyday tasks can help you stay effective and profitable without making unnecessary cuts to your expenses.
Though many consumers will likely be looking to real estate as a hedge, that doesn’t mean real estate professionals are immune to the negative effects of inflation. Taking a few simple steps can go a long way in protecting your business.
Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas, firstname.lastname@example.org.