As official inflation numbers trickle out from several sources, it’s looking more like the year’s second quarter will see prices increasing by at least 8.5 percent across the board. That’s not good news for households, small businesses, and non-profit corporations who are typically among the hardest hit when inflation begins to creep past the five percent threshold. Likewise, startup companies face a double challenge. Because many micro-companies operate on personal funds, cash-strapped individuals find it difficult to set aside enough capital to initiate a new enterprise. Then, if you’re lucky enough to get one off the ground, they face wholesale and producer price hikes as well.
Owners in every state are turning to small business loans to ease the pain of rising prices. Of the many reasons for seeking this kind of relief, many entrepreneurs choose a small loan for purposes of flexible repayment schedules, the chance to gain access to support networks, and online coaching options. Plus, most such loans come in a variety of sizes so borrowers can choose exactly how much funding to acquire. Lenders in the niche tend to specialize in working directly with creators of small enterprises who typically can’t get loans from traditional financial institutions. The best loan for small businesses is one geared to company size, ability to repay, and other factors.
One way the entrepreneurial-minded are cutting costs and battling inflationary pressures is by running home-based companies. Not only do home offices avoid the need for costly commercial rental space, but they eliminate commuting expenses and save time. Since the recent COVID pandemic, there’s been a surge in at-home offices for employees and owners. Whether the reason is to prevent the spread of a virus, save on fuel costs, or take rent out of the equation, working from home has become one of the most useful tips for startups as well as established businesses, as well as a potent weapon in the ongoing fight against inflation.
In free-market economies like the U.S., Europe, Australia, and Taiwan, independent profit-seekers are not only working from spare bedrooms but are opting to run sole proprietorships to keep wage expenses down. Since 2020, more owners are choosing to go solo in a variety of sectors, including tax preparation, online tutoring, career coaching, e-commerce reselling, and consulting services. For entrepreneurs who never have to sign a paycheck, cover employee benefits expenses, or worry about being sued by disgruntled ex-workers, running a one-person shop is the single most powerful way to stop inflation in its tracks.
As producer prices continue to surge well into the year’s second quarter, founders are increasingly opting to use an age-old business model to rein in expenses. Family-run enterprises leverage the built-in feature of on-hand employees who are willing to work for long-term success instead of an hourly wage. For centuries, and in every culture, families have operated stores, banks, and other types of entities to take advantage of having a trusted group of workers who have a vested interest in the organization. Families who operate companies save on wages, hiring costs, office space, security, and more.
For investors and founders in 2022, inflation is a real threat. Recent increases in traditional products and services reveal a trend toward ideas that have positive track records in turbulent economies. Perhaps that’s why a large number of newly registered businesses sell reliably in-demand consumer goods like tech devices, homecare products, clothing, hardware, and cleaning supplies. Service purveyors are opting for traditional fields like counseling, tax preparation, tutoring, and investment advice. Until inflationary effects subside, which isn’t likely to be soon, it’s a good bet that entrepreneurs will continue to lean on old reliable choices for the goods and services they offer.