If you own or manage a small business right now, you have a critical decision to make in response to inflation and the potential recession that may follow.
What Could Happen?
Consumers are experiencing real pain because the CPI recently hit its highest rate since 1981. As a result, anyone under the age of 60 has never had to face such drastic price increases. Furthermore, it was a series of unprecedented events that led to such high prices in the first place. The Pandemic, the Great Resignation, the Russian War in Ukraine, and energy policies related to climate change are all factors here.
The Federal Reserve has usually determined that a 2% rate of inflation is ideal for economic stability. Thus, the Federal Reserve raises interest rates on borrowing when inflation gets out of control. Rapidly increasing interest rates may drive the economy into a recession.
What Can You Do About It?
The real question for SMBs, right now, is how to react to inflation and prepare for the possibility of a recession. Interest rates are already going up, so borrowing money now is already riskier than it was just a few weeks ago. But the effect of raising interest rates takes time to manifest. Businesses are still feeling the effects of inflation when it comes to production costs, shipping costs, and retaining employees in a strong labor market.
Joe Camberato from Forbes says that businesses either need to lean out and tighten their belts or invest in growth. He suggests “investing in technology,” without offering any concrete examples. But DatCom has those answers.
At DatCom, our specific answer to that question is to use low-cost technology tools to decrease spending and increase productivity. Data Processing Automation (DPA) is a wonderful answer for such a time as this because it saves a precious commodity: Time.
By automating repetitive, back-office tasks, businesses can avoid hiring or replacing lost employees. They can also increase productivity to provide faster, cheaper services for their client base, keeping them happy.
The best part is that DatCom’s business model is designed to increase productivity without costing businesses anything. That’s why it’s a good, proactive solution for facing inflation and potential recession. We do our own discovery work and charge no implementation fees. We only take a percentage of the savings.
Contact DatCom to schedule a conversation about how we can help your business face inflation with DPA.