Smarter BusinessUncategorized

Increase Volume Now or Fail Later

As a business owner your priority right now should be to increase volume of sales, increase numbers of patients or customers, increase prices, increase margin and efficiency, and especially increase the velocity of currency passing through your bank accounts!

 We should always be doing the above but if you don’t really focus on it this year you could be out of business, broke, or struggling by next year.  Take a look around you and you will see that gas prices are rising again, grocery prices are headed up, the cost of most services are rising, and the only cheap things you can find now are from China.  Even Real Estate is rising again but the surprising thing is rental prices.  Okay, that should be enough said since only people who don’t spend any money at all can’t see that prices are rising. 

 Why will inflation take hold?  It is very likely because governments do not have billions and trillions of dollars or euros on hand.  They have to get the money from taxes and the printing press.  Since taxes are rising but money going into governments is being reduced at the same time by lower economics, the governments must print more money to perform bailouts.  If they print more currency, then it will take more currency to buy things.  If it takes more currency then you must run more currency through your business in order to maintain profitability.

 It’s as simple as asking how much it cost ten years ago to pay for your business activities and what profit per item or service did you make?  Costs are up even if you think you are making the same number of dollars per item or service, because you must spend more, your dollars are worth less and buying less.  You must increase the velocity of money through your business RIGHT NOW!  You can’t wait.  Would you be contributing to inflation?  Yes, but not causing it.  If bread cost 50 cents 20 years ago then you cannot avoid participating in the higher cost of it today, even if you yourself did not raise your prices over the years.

 If you are a doctor you need to see more patients faster, especially if insurance matters are causing you to make less per patient.  Even more so!  See more patients and get your work done faster!  You have no choice.   If you own any business which has buying customers you must try to raise prices now.  Why now?  If you lose some customers now it’s better than losing some later since you will have some time to replace them before the dollar falls too far and your earnings fall too much, the cost to replace them is lower now than later.  You must stay ahead of this economic wave of inflation.  And by saying next year I really mean over the next several years.