As a successful entrepreneur, Kevin Mulleady knows the importance of wise financial management. He is also familiar with the challenges runaway inflation poses for entrepreneurs struggling to secure labor, supplies, and transport without raising prices too high for consumers, cutting services, laying off essential employees, or scaling back the business. Mulleady offers advice that can help current business owners and those thinking of starting a new business to succeed long-term despite the rising costs of goods and services.

Mulleady urges entrepreneurs to look closely at their financial business performance from the last few months to see what needs to be done to keep a business afloat and then decide on ways to bring in higher profits. In some cases, this could mean stocking up on materials even if the company needs to take out a loan to do so. Such a course of action could help a business owner save thousands of dollars long-term; inflation and ongoing supply chain shortages could continue pushing up the price of raw materials for the next year or longer, and loan interest rates could continue rising as the FED attempts to rein in soaring inflation rates. At the same time, Mulleady notes, existing customers know that business overhead prices are rising faster than they did in times past, and they will often not mind paying extra for goods or services they know offer good value for the money spent. 

It is also wise to reconsider which products or services should be offered now, and in the future, Kevin Mulleady advises. If, for instance, it is becoming too expensive to purchase raw materials used in particular products, it may be time to transition to new products or services and to use new materials in product creation. This is a delicate process, as consumers that expect a business to meet specific standards may be put off if they think a company is trying to cut costs by using low-quality materials. Once again, Mulleady explains, this is where a good marketing campaign comes in. A business should explain the benefits of its new materials and manufacturing process to get consumers inspired about new product lines.

Kevin Mulleady also encourages entrepreneurs to look for ways to cut costs. Hiring contractors or freelancers can be more cost-effective than hiring full-time employees. Allowing employees to work from home rather than leasing an office can save a business the money that would have been spent on rent and utilities. Transitioning to an online-only platform may be in order if it is becoming too expensive to maintain a storefront. Moreover, becoming an online-only business does not have to preclude making local, in-person sales, as a company can always rent vendor space at local markets and events.

Some experts warn that up to 66% of small businesses could close in 2022 because of inflation, as the rising cost of goods and salaries can make it difficult for even savvy small business owners to keep up. Many consumers are also looking for ways to lower costs as inflation takes a bite out of their income. Companies could lose long-term clients even if they offer top-tier products and services. However, as Kevin Mulleady quickly points out, inflation doesn’t have to shut down a business automatically; it could even help a business grow to new heights by taking out local competitors. Mulleady urges entrepreneurs to face the many challenges of inflation by assessing how their company operates and making needed changes to keep it afloat. It can be time-consuming or even emotionally taxing to evaluate business operations to look for ways to boost profits and lower operating expenses, but the end result is likely to be well worth the effort.