Protecting Your Business from Inflation:
Lessons Every Entrepreneur Needs to Hear By Jeff Wagner
Julie felt trapped. She loved her bakery, her customers, her craft. But the numbers didn’t lie. She was on the verge of burnout, trying to fix a problem she couldn’t fully see. And that’s where so many of us get stuck—because we assume inflation is just something we have to live with.
Inflation doesn’t knock on the door and announce itself. It creeps in, subtle at first—a slight increase in supplier costs here, a bump in shipping rates there. You brush it off, thinking it’s just a temporary blip. But then, before you know it, your profit margins are evaporating, and you’re scrambling to keep up. I’ve seen it happen too many times. I’ve felt it happen in my own ventures. And here’s the kicker: most entrepreneurs don’t even see the full scope of the problem until it’s too late. Inflation isn’t just rising prices. It’s a thief, quietly stealing your hard-earned money while you’re too busy running your business to notice. A friend of mine, Julie, owns a bakery. She started noticing her costs going up—not dramatically, just small, manageable increases. Flour, sugar, eggs… the essentials. At first, she absorbed it. Raising prices felt risky, like she’d scare away her loyal customers. She worked harder instead. More hours, more orders, more stress. It wasn’t long before she realized something horrifying: she was losing money on every sale. That’s the sneaky part about inflation. It doesn’t hit you all at once. It’s a snakebite—a mordita. A little bite that spreads its venom through every aspect of your business.
It’s not.
Inflation might feel like an unstoppable force, but here’s what I’ve learned: if you understand it, you can fight it.
I told Julie, the first thing she needed to do was track everything. Every single dollar coming in and going out. She was hesitant at first—like most of us, she’d been running her business on instinct for years. But inflation thrives in blind spots. The only way to stop it is to shine a light on every corner of your operation. What Julie discovered shocked her. Ingredient costs had gone up by 18% in just six months. Packaging was up 25%. And shipping? A staggering 40%. She hadn’t raised her prices once. Her loyalty to her customers was admirable, but it was also killing her business. Once she saw the numbers clearly, she could act. She adjusted her pricing— not dramatically, but strategically. She explained the changes to her customers, emphasizing the quality of her ingredients and the care she put into every product. Most of them understood. Some even thanked her for being honest.
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