3 Business Tactics to Fight Inflation
During a downturn in the economy and when inflation is shrinking your revenues while also increasing your business costs, you may also face higher borrowing costs. It's the double whammy - Right? Here are some tactics that can get you through the tough times.
1. Be cautious about adding a lot of inventory, which is just cash on the shelf that you can’t access. Move it as efficiently as possible. Track your inventory very carefully.
2. It is often easy to get behind on following up with late-paying customers when you are in a stressed business mode. Now it is crucial to monitor past due Accounts Receivable and even call on slow payers to remind them. Be top of mind with your late payers. Do it in a professional approach, but be persistent. The squeaky wheel gets the grease.
3. Try to avoid borrowing at high-interest costs. If possible, increase your cash reserve to handle emergencies. Try to renegotiate terms on any debt. See if your Line of Credit can be increased. Explore ways to establish recurring revenue.
These are defensive tactics.