Dec 16, 2021
On today’s episode we talk about inflation and how to prepare your business for it. With the new year right around the corner, it’s important to take time to consider what inflation will look like next year, and what modifications you need to make to combat it. It’s important to check on your profit margin and see what investment options are available that could help your cash’s value keep up with the inflation rate. Please know, we are not financial advisors, so please contact your real financial advisor to go over some options that could help your business with inflation. As a business leader, your mindset matters. Although it’s tempting and easy to slip into a lack mentality, try to find the silver lining and stay hopeful. With some preparation, inflation doesn’t have to be as scary as it sounds.
Top 3 Curtain Pulls in this episode:
For more tips, discussion, and behind the scenes:
About The Guys:
Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob:
Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:
Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken:
[0:35] Ken opens this week’s episode with a chat about the upcoming holiday season and what gets the guys in the Christmas spirit.
[4:09] Bob begins the conversation about this episode’s topic, inflation. “I think it's a good time of year to start talking about 2022 and inflation in your business and your agency etc. And how do you prepare yourself for inflation?”
[4:39] Ken discusses a few shocking third party stats concerning Black Friday and Cyber Monday sales.
[6:36] Bob talks about the impact that Facebook and OS changes have had on the decrease in impulse purchases.
[9:19] Brad asks, “how do we hedge against inflation and how do we do things to prepare now, before you get to the point where we're all feeling it.”
[10:31] Brad talks about how he’s looking at the cash he has since cash is what’s being deflated.
[12:22] Ken mentions some real-life examples that portray the crazy increase of inflation over the last 3 years. “I have a Christmas tree that I bought from Costco in 2018. Yeah. It's $200 More at Costco today.”
[14:54] Ken talks about why he believes it’s important to be shooting for over 30% profit. “If you're not ahead of it, it will creep up on you, you'll look back on it.”
[17:49] Bob discusses how, “Salaries don't always keep up with inflation in every industry. And they should, to a certain degree.”
[18:35] Bob talks about some practical things business owners can do to prepare, including the importance of paying close attention to your productivity.
[19:23] Ken adds that it’s vital to ensure that all costs are efficient.
[22:36] Bob notes that focusing on cash flow can also help prepare your business for inflation.
[23:00] Ken talks about how it is crucial to decrease costs and increase income. He also says that “cash is not king, but cash flow is king.”
[28:51] Bob adds that automation wherever possible can help reduce costs.
[30:13] Brad talks about the importance of being proactive when it comes to inflation. “You're not reactive, but you're proactive.”
[31:53] Bob says that debt is often the downfall of businesses, so if you have debt, it’s important to address that.
[33:07] Ken mentions that taking on risk by investing in a “safe investment” will make more money than just holding onto the cash.
[34:42] Brad advises the listeners to talk to your financial advisor to come up with a plan that will work best for your business.
[36:36] Bob talks about evaluating and adjusting your rates. “It's probably easier to do it incrementally, a little bit at a time, like once a year for the next three or four years.”
[38:17] Ken reveals some of his hacks for renewals.
[40:36] Bob says that an abundance mindset is a game changer. “don't get into a lack mentality that says, there's only so many pieces of the pie, and if I don't get mine, then I'm not gonna have it.”
[42:08] Ken talks about the silver lining in inflation. “the silver lining in this is like, there is 30% more cash out there.it's being spent and wants to be spent and all that kind of stuff. The one upside of it is there's not less cash, there's more.”
[44:11] Brad concludes this episode by saying, “help your clients when they struggle through things like this. That builds a long lasting relationship.”