Posted by Guest Blogger Al Yambor, Senior Director, Family Wealth, Sequoia Financial Group, LLC
From inflation to supply chain bottlenecks to labor shortages, business owners are facing a number of challenges. According to a recent survey by the National Federation of Independent Business, of the aforementioned challenges, business owners have cited inflation as the single greatest pain point. The survey reports that three out of every four business owners reported inflation negatively affecting their business over the past six months. For the full year 2021, the consumer price index came in at a scorching 7%, the highest 12-month increase since 1982.
The rate of inflation has largely been driven by supply chain bottlenecks created by disruptions from COVID-19 and a soaring recovery in demand, without enough inventory to keep up. Additional inflation has been driven by the increasingly competitive labor environment, which has led to hourly wages growing at over 4% according to Paychex | IHS Markit Small Business Employment Watch, the fastest pace since the study began 10 years ago. While inflation is expected to ease throughout the year as supply chains continue to loosen, uncertainty around COVID-19 is a key variable that could lead to inflation sticking around longer than anticipated.
In light of this economic backdrop, below are six actions business owners should be considering now:
Al Yambor is a Senior Director, Family Wealth, at Sequoia Financial Group, LLC. Contact him at email@example.com or visit www.sequoia-financial.com.
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.
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