Inflation occurs when goods and services increase overall, which is often preceded by an increase in fuel. Although not all types of inflation can affect a country's economy, inflation that exceeds 20% is often a scourge for business people. The negative impact of inflation will occur, such as a decrease in sales, an increase in raw material prices, and then business profits will also decrease, even if the inflation percentage is higher, many businesses will close because they are unable to cover operational costs. However, business people do not have to give in to inflation, for this reason business people need a strategy to deal with inflation so that even if profits fall, the business will still run. The following are several strategies that business people can use to deal with inflation:
1. Practice Efficiency
The first thing business people have to do is make efficiency in all parts, so that all costs can be reduced, if necessary, carry out automation to further reduce expenses.
2. Selling price adjustments
If there is an increase in production costs or the cost of merchandise at a trading company, the sales price also needs to be adjusted or increased.
3. Storing Inventory
If possible, it is necessary to store inventory before inflation occurs, especially for types of inventory that are not easily damaged or expire.
4. Create Innovation and New Variations or Product Diversification
Businesspeople need to create innovations and new variations in their products, so that consumers have several price choices, usually in smaller sizes and cheaper prices.
5. Implement a risk management system
Carry out several evaluations, analyze and identify the risk of inflation so that business people are able to minimize the risk of inflation in their business.
6. Improve relationships with Customers and Suppliers
Improve relationships with customers so that they can maintain their trust in products and establish good cooperation with suppliers, so that they can save costs related to raw material supplies or merchandise inventory.
7. Safe Haven Investments
It would be good if business people had safe haven investment instruments, as protection during inflation, such as gold, USD or EURO, government securities/government bonds, US Treasury, Defensive Stocks and Bitcoin.
1. Practice Efficiency
The first thing business people have to do is make efficiency in all parts, so that all costs can be reduced, if necessary, carry out automation to further reduce expenses.
2. Selling price adjustments
If there is an increase in production costs or the cost of merchandise at a trading company, the sales price also needs to be adjusted or increased.
3. Storing Inventory
If possible, it is necessary to store inventory before inflation occurs, especially for types of inventory that are not easily damaged or expire.
4. Create Innovation and New Variations or Product Diversification
Businesspeople need to create innovations and new variations in their products, so that consumers have several price choices, usually in smaller sizes and cheaper prices.
5. Implement a risk management system
Carry out several evaluations, analyze and identify the risk of inflation so that business people are able to minimize the risk of inflation in their business.
6. Improve relationships with Customers and Suppliers
Improve relationships with customers so that they can maintain their trust in products and establish good cooperation with suppliers, so that they can save costs related to raw material supplies or merchandise inventory.
7. Safe Haven Investments
It would be good if business people had safe haven investment instruments, as protection during inflation, such as gold, USD or EURO, government securities/government bonds, US Treasury, Defensive Stocks and Bitcoin.
