“Everything has gone through the roof.”15.06.2022
Speaking with a client who runs several food outlets in SydneySpeaking
Now is a time to be sensible.
Foodstuff prices are rising, and in our conversation yesterday, we also talked about chicken, beef, and the lack of lettuces from the marketplace.
We also talked about price rises that the market will stand. Having been hammered with COVID, with his shops closed, and now landlords wanting their money before we can plan any restructure, it’s going to be hard going.
But, at Your Business Angels, we have done all the tough jobs over the last 28 years. While with our client with the food outlets, we are constantly changing the tactics to get through, in this case, the strategy of having three great businesses reopened and running well and compliant still stands – even if it feels like a million miles away now.
We often talk about “what is the next sensible thing to do?” In keeping a business on the road to recovery.
For many of our clients, remaining profitable and not being beaten in the marketplace it’s about asking that question constantly. If you are a constant reader of our blogs, you will see we focus our clients on pricing and being careful with quotes.
In being sensible, we also suggest giving up some wasted spending to compensate for price rises at home, an increase in mortgages and other pressures you will come under.
The Reserve Bank Governor has warned Australians they need to be prepared for substantial interest rate rises over the rest of this year, conceding he’s not sure how high they might go.
- Philip Lowe says it would be “reasonable” to think interest rates could get to 2.5 per cent at some point
- He expects inflation could reach 7 per cent by the end of this year and to start dropping early next year
- He defended the RBA’s statement last year, which said interest rates wouldn’t rise until 2024
That’s all code for “and it will go higher”.
Being sensible now will save any panic later.
You know we are a phone call away. What to discuss the business, want help with a budget –call your client coordinator, and they will tee up meetings with the right people in our Your Business Angels family.