Inflation is one of the things most countries of the world fight against in their macro economic policies. This is because it has the ability to misallocate resources within the economy. By this I mean it can make some people become richer and some become poorer. If you are a business man, you are one of the people inflation pays, if you know how to use it.
This is because goods bought at a lower price can now sold at a higher price. What then should a business man do in this period of rising prices to grow his business.
1. Stock up more goods if you have the money
There is a possibility that prices of good will rise more due to inflation.
2. Restrict credit terms
Inflationary period is not a good period to sell on credit, however, you need not chase your customers away because of inflation. But make credit terms more difficult because during inflation creditors lose and debtor gain.
3. Buy more on credit from suppliers, if you are credit worthy.
4. Obtain a loan from your bank to stock up your inventory, if you have assess.
5. Spend less on luxuries for yourself and your family.
If you observe these things inflation will make you to give a testimony
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