If you talk to any small business owner this year and ask them the one thing that’s on their mind—above anything else—you will likely hear the ominous “inflation.”
The signals are mixed.
Job growth remains strong, and freight flows where decline is a leading indicator of recession. But gas prices are at all-time highs. There is a war in Europe for the first time in more than 50 years. And inflation is strong and persistent for the first time in 40 years. Rising rates are cooling the housing market. The fact remains that eight of the last nine times the Federal Reserve raised rates to combat inflation, it resulted in a recession.
It’s safe to say that the power of small businesses is one of the most underestimated and misunderstood concepts today.
A year into the pandemic and here we are in the new normal. We have adjusted, pivoted, downsized and then expanded over the last 12 months. To me, at times it has felt like getting dressed in the dark, with the wrong hand!