It is known that the level of inflation affects the purchasing power. When inflation is high, the value of money decreases over time, delaying the implementation of investments, as their return must exceed the level of inflation in order to be considered attractive. In addition, high inflation affects the central banks’ monetary policy, leading to an increase in interest rates, according to Kyriakos Xanthopoulos, business consultant at BSS.
However, despite the challenges that may exist, there are countermeasures and growth opportunities for investment in new business as consumers opt for products and services that offer value and stable prices. Businesses must be ready to take advantage of opportunities, despite economic challenges:
A business model with proper management of increased costs and price adjustment to compensate for inflation, without excesses that could deter customers.
Innovation in production, product or services in order to save resources and increase efficiency.
Redesign procurement strategy and better opportunities and deals.
Financial planning that will include provisions for the increase in operating expenses and alternative sources of financing.
“Inflation is a major challenge, but it can be dealt with the right strategy, awareness and adaptation that can even lead to the exploitation of new opportunities,” Xanthopoulos stressed and added: “Business consulting to address the risks posed by inflation can prove critical to maintaining economic health while helping to develop and implement the necessary strategies to maintain business competitiveness.”
