In today’s economic climate, small businesses are navigating the challenges of inflation. After the Covid-19 pandemic, inflation has significantly affected business operations and profitability. Rising costs for goods, services, and labor are putting pressure on profit margins. For entrepreneurs, who may struggle obtaining financial resources, it is important to have a thorough understanding of their business and personal finances. Business Impact NW is here to help.
Joe Sky- Tucker, CEO of Business Impact NW, states, “I cannot stress enough how important it is for business owners to have a deep understanding of their finances.”
Inflation and Financial Awareness
Inflation decreases purchasing power while increasing expenses. This complicates both business and personal budgets, and for business owners, being knowledgeable about their financial situation is critical to success. With the economic landscape significantly different after the pandemic, it is crucial for business owners to be doing more than just tracking expenses and income, but should also fully understand their cash flow, know how to manage debt, and how to make informed financial decisions.
Speaking recently at the Southside Leadership Conference 2024, hosted by the Seattle Southside Chamber, Joe discussed the impact of inflation on small businesses. During the Covid-19 pandemic, loan programs, like the PPP loan, made financial help more accessible, the likes of which small businesses will not see again. Reducing access to widely available funding left a lasting impact on small businesses, but increasing financial awareness can help prepare entrepreneurs for the current business landscape and future economic fluctuations.
Discussing the importance of financial literacy and flexibility, Joe states,
“Coming out of Covid-19, we won’t see as much free money as before. In every economic downturn, there’s an opportunity, but as a business, you must be able to pivot. The businesses that saw success during that time were able to take a deeper look at their finances, understand them, and pivot. You need to be able to work on your business in depth instead of just working for your business.”
Understanding and successfully managing both business and personal finance will lead to more successful outcomes for your business. Many entrepreneurs often use personal resources to support their businesses, blurring the line between personal and business finances. Given this interconnection, business owners need to be extremely cautious with credit, particularly credit card debt, which can quickly accumulate and become difficult to manage. It is tempting for business owners to float costs from one credit card to another, but this practice should be avoided to manage credit efficiently.
Business Impact NW Supports Small Business Owners
Business Impact NW is dedicated to serving small businesses and entrepreneurs. With a range of essential services and resources, we help small business owners gain a better understanding of their finances through our Capital Readiness Program. Offering financial workshops, one-on-one financial and business counseling, classes, business coaching, funding, and more, Business Impact NW stands as a one-stop resource center for small businesses.
Business Impact NW has credit counseling experts to help guide business owners in managing and reducing debt. We also assist in exploring options for refinancing existing loans at lower interest rates to help reduce the financial stress faced by borrowers. This comprehensive support helps businesses build a strong financial foundation and empowers them to make smarter decisions and strengthen their businesses.
Capital Readiness Program
We provide tailored advice and business loan training for entrepreneurs to access the funding needed to start and grow their businesses. Here are some of the resources that Business Impact NW offers through our Capital Readiness Program:
- Loan Applications
- Lending Information
- Financial Planning & Education
- Credit/ Credit Counseling
- Debt Management
- One on One Coaching
- Classes
Director of the Loan Readiness Program, Christine Buckley, states,
“With higher interest rates, higher cost of goods and services, and higher employee costs, some small businesses are seeing their cash flow affected negatively and seeing lower profits. The Capital Readiness Program offers free advising to help businesses plan, prepare and access capital during tighter economic times through financial statement review and education, cash flow management and budgeting, financial strategizing and profit maximization.”
As a business owner looking to get a better grasp on your finances for the current economic landscape, Business Impact NW’s Capital Readiness Program is a great option. With our expert guides, we are here to support you through your entrepreneurial journey, from start-up to continued, successful growth.
If you’d like information on our Capital Readiness Program, click here.
To view our calendar of upcoming learning opportunities, networking events, or programs, click here.
About the author
Emma Seymour is a Communications and Public Relations professional specializing in storytelling, relationship building, and content development. A military spouse and former small business owner, she advocates for veterans, transitioning service members, and their spouses, and has delivered keynote speeches on workforce development, military programs, and childhood trauma.