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title: 📈 How your business can beat stagflation
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Today, we discuss what stagflation is and what small business owners can do to beat it...cause it's here to stay for a while.

| View this email in your browser Old Man Winter is a bi-weekly newsletter that shares valuable insights and actionable ideas to help small business leaders survive the elements and grow their businesses. New in the neighborhood? Subscribe here.   This newsletter is brought to you by Mr. Winter Walk-in Coolers and Freezers. We offer custom-built and foamed-in-place "quick ship" walk-in coolers and freezers to help small businesses keep perishables fresh and profitable.   Don't want these incredibly thoughtful and useful emails? Unsubscribe here.   In our last issue, we discussed why executing ideas is the game and how applying the principles outlined in "The 4 Disciplines of Execution" can help us become execution machines.   Today, we discuss what stagflation is and what you can do to beat it.     Hello, Stagflation! When we were told "business leaders must always adapt to changing economic environments", nobody told us we'd be going on a post-Covid economic roller coaster ride.   And just when we thought we had experienced every rise, drop, and turn on the roller coaster, a new loop presents itself: stagflation.   What is stagflation?   Wikipedia defines stagflation as an economic environment in which the inflation rate is high, the economic growth rate is slow, and unemployment goes up.   In simple terms, stagflation is a sluggish economy with high inflation...and a tough environment in which to run a business.    Many small businesses go under during stagflationary times because inflation drives up the costs of doing business (raw materials, wages, rent) while demand for goods and services becomes stagnant due to credit tightening.   Business that adapt to stagflation find themselves better positioned for the economic boom that typically follows.   This is why it's important to consider and execute on the following ideas to survive and thrive in a stagflationary environment.   Automation   One of the best ways to deal with stagflation is by improving productivity.    And the best way to improve productivity is by investing in software and/or machinery that automates your processes and frees up employees' time to engage in more productive endeavors.   Automation is deflationary. Investing in it today can reap great benefits in the future as it pays for itself.   However, ensure that your team is committed to learning how to use new tools so they can make the most of their power.   Otherwise, your investment in automation could easily turn into just another expense.   Improve Quality and Service   Is your competition raising prices to offset increasing costs? If they are, this may allow you to raise prices as well.   But if you're going to ask customers to pay more for your product or service, make sure the quality of the product or service you offer is as good or better than the competition's.   Can you offer a better product than your competition? It's much easier to raise prices on products that are new and improved.   Can you offer better service by improving on lead times in the midst of a supply chain fiasco? Customers need to get something in return for the higher prices.   Minimize Debt and Stay Profitable   You want to keep debt low when interest rates are rising.   Are you carrying debt with a floating interest rate? Consider refinancing it into a fixed interest payment. This will cost you upfront, but it reduces the risk of not being able to service your debt in the future.   Also, take profit first.   Your revenue may slow while costs continue increasing during a stagflationary period. This doesn't mean you stop taking profit though.   Positive cash flow is the most important factor leading to your business's long-term success. Without enough money, your business can't take its message, products or services to the world.   And if you can't take your message, products, or services to the world, your business will likely crash and burn.   Profit is not an event. It is a habit.   Start taking profit first immediately. Take your very next deposit and allocate 1% of the total amount to a separate bank account nicknamed PROFIT. Do this with every deposit.   Over time, this habit will have you finding creative ways to increase your allocation.   Take profit first and then (this is important) get creative with what's left over.    In Closing   Stagflation sucks. But navigating these waters honestly gives small business leaders a chance to take a long, hard look at their businesses and adapt.   The sooner we adapt to this changing environment, the stronger we come out on the other side of stagflation.   This too shall pass. Entrepreneurship is a journey, not a destination. Enjoy the roller coaster ride.   As always, stay alert, stay educated, and most importantly, stay cool.   Talk soon, Old Man Winter   HOW DID WE GET HERE? The President of the United States is making inflation his top domestic priority, according to a speech he gave on the topic earlier this week.   The President cited the Covid-19 pandemic and Russia's invasion of Ukraine as the two main causes of high inflation.   Still no mention of the undisciplined monetary and fiscal policy adopted by central bankers and politicians over the last 24 months.   Nope, still no mention of the M2 Money Supply increasing 41% between March 2020 and February 2022, as illustrated in the chart above.   I won't hold my breath.    QUICK SHIP COOLERS & FREEZERS Heard the news? You don't have to wait months for a new walk-in cooler or freezer anymore.   It's unacceptable to expect small businesses - restaurants, breweries, ice creameries, bakeries, convenience stores, and flower shops - to wait months for a new walk-in cooler or freezer when they need cold storage solutions today.   It's also unacceptable to expect foodservice equipment and commercial refrigeration professionals to wait months to receive full payment for a job they sold eons ago.   Wintelligent®️, Mr. Winter's new line of modular, foamed-in-place walk-in coolers and freezers, helps small businesses in need of cold storage start keeping perishables fresh and profitable in as little as 3 weeks...not 4 to 6 months.   You don't have to waste months of your business's precious life waiting for a cold storage box of dubious quality.   Visit www.wintelligent.com today to learn more about our quick ship coolers and freezers, request a quote, and start keeping perishables fresh and profitable in as little as 3 weeks. LEARN MORE   What to do next ➡️ Was this newsletter forwarded to you? Sign up here.   ➡️ Need a new custom walk-in cooler or freezer? Take a look at our offerings here.   ➡️ Need a new walk-in cooler or freezer delivered in less than 3 weeks? Learn more about our quick ship boxes here.   PRODUCTS       PARTS       CONTACT You're subscribed to the Old Man Winter newsletter from Mr. Winter, Inc. Don't want these incredible emails anymore? Unsubscribe 800-327-3371 Mr. Winter, 8800 NW 77 CT, Medley, FL 33166, 800-327-3371 Manage preferences |
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