If you’ve been reading about inflation and deflation and aren’t sure how it might affect the state of your business, one thing is for sure…we all need to be prepared for consequenses that might arise out of the decision of the Federal Reserve to start purchasing bonds to the tune of around $500 billion. At GroupeSTAHL we are already seeing signs of costs rising for raw materials, and I have personally heard of towns that are unable to finish projects due to rising costs of commodity items such as copper and steel. I also just read a story on Scott Fresener’s blog about the rising costs of cotton and the impact it will have on our businesses.
I am not an economist but as a business owner I need to be aware of what is going on in the world economy. This struck me as something we all need to know more about and if you are planning on keeping your profit margins in the near future without raising prices, you will have to take a serious look at what you can do to keep costs that you can control as lean as possible. The impact of Bernanke’s decision still remains to be seen but you should be prepared and try to get a better understanding of how this could affect your business.