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Avraham "AY" Rappaport, CLTC
President, Financial Professional
Yaniv "Jay" Natanov
President, Financial Planner
Eli Rappaport
Vice President, Financial Planner
Shlomo Rosenstein
Financial Professional
Ozzie Marizan
Financial Planner
Joseph Greer
Employee Benefits Administrator
Sarah Tutko
Senior Client Support Manager
Premier Financial
6395 Dobbin Road, Suite 102
Columbia, MD 21045
Phone: 240-309-6001
Email: joseph.greer@prudential.com
Website: premierfinancial1.com
March/April 2023
Business Owners Strive to Counter Inflation
In Fall 2022, the U.S. Chamber of Commerce Small Business Index listed the impact of inflation as a major concern of 90% of small business owners. Business owners who consider inflation a significant challenge to growth and profits may want to take steps to counter its effects.
What about Cash?
Inflation decreases the value of cash and reduces your purchasing power. When the dollar is worth less, your money buys fewer goods and services. Because supplies and labor are more expensive, your business’s profit margins are lower. Consumers also spend less, resulting in decreased revenue. While there’s nothing you can do about the tanking dollar, investing some of your cash to stay ahead of rising market prices may be a smart move. Your financial professional can recommend appropriate investments.Judicious Moves
You want to maintain a good rapport with vendors, but be cautious about making loans and extending lines of credit. Bad debt is never good for your bottom line, but it can be particularly harmful when inflation is rampant. Keep a close eye on spending and expenses. Proceed cautiously with any new strategies you’re implementing, while ensuring that products move to market at a reasonable pace.Your Supply Chain
Global supply chain issues have made strengthening your relationships with suppliers essential. By communicating with your suppliers, you may be able to anticipate which products are likely to be in high demand going forward. You may be able to cultivate relationships with reliable suppliers by joining industry groups and associations. A review of your business’s procurement policies and protocols can ensure they’re efficient and up to date.Insurance Review
Driven by inflation, high labor costs, an unpredictable supply chain and competition for building materials have contributed to the rise in construction costs. If your business’s physical location sustained fire, flood, or wind damage, would your current insurance amounts cover the cost of rebuilding? Outdated insurance coverage limits that don’t reflect the current costs of rebuilding could make it impossible to recover from a major loss. Review your policy and adjust coverage to take the effects of inflation on building costs into account.Work with your tax and financial professionals to come up with ideas to combat inflation’s effects on your business.
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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sarah Tutko is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
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