There are so many business challenges facing companies in 2022. Prices rose 7.5% in January compared to the year prior. This is the biggest annualized growth in Consumer Price Index inflation since February 1982.
Some key strategies to consider:
Save Cash: Purchasing power goes down as costs goes up. Build up cash reserves, such as moving cash to interest bearing certificates of deposit, savings accounts, or money market accounts.
Meet Inflation Head-on: For businesses that must increase prices to cover costs, you need to be creative in your pricing strategies as opposed to making a blanket increase.
Make the Most of Business Loans: Consider taking a loan to stretch the worth of your dollars while inflation is high (expected rate hikes are coming so this should be an approach to consider now). If inflation continues, you could be paying back your loan with cheaper dollars.
Spend Assessment: It is critical to understand your operating costs and labor expenses. Companies can work strategically with OPS to put judicious cost control policies in place that can achieve higher savings with little to no impact to the efficiency and effectiveness of operations.
Emphasize Efficiency: Review how much work is getting done by who, on what, and how. Reducing work through automation will mean less labor needed to run operations and will free up workers to focus on value-add activities.
Work with OPS during times that continue to be unprecedented and out of our control. It’s best to take the time now to find who can help your company increase EBITDA by increasing revenue and reducing costs.
