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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
March/April 2023
Business Owners Strive to Counter Inflation
In Fall 2022, the U.S. Chamber of Commerce Small Business Index listed the impact of inflation as a major concern of 90% of small business owners. Business owners who consider inflation a significant challenge to growth and profits may want to take steps to counter its effects.
What about Cash?
Inflation decreases the value of cash and reduces your purchasing power. When the dollar is worth less, your money buys fewer goods and services. Because supplies and labor are more expensive, your business’s profit margins are lower. Consumers also spend less, resulting in decreased revenue. While there’s nothing you can do about the tanking dollar, investing some of your cash to stay ahead of rising market prices may be a smart move. Your financial professional can recommend appropriate investments.Judicious Moves
You want to maintain a good rapport with vendors, but be cautious about making loans and extending lines of credit. Bad debt is never good for your bottom line, but it can be particularly harmful when inflation is rampant. Keep a close eye on spending and expenses. Proceed cautiously with any new strategies you’re implementing, while ensuring that products move to market at a reasonable pace.Your Supply Chain
Global supply chain issues have made strengthening your relationships with suppliers essential. By communicating with your suppliers, you may be able to anticipate which products are likely to be in high demand going forward. You may be able to cultivate relationships with reliable suppliers by joining industry groups and associations. A review of your business’s procurement policies and protocols can ensure they’re efficient and up to date.Insurance Review
Driven by inflation, high labor costs, an unpredictable supply chain and competition for building materials have contributed to the rise in construction costs. If your business’s physical location sustained fire, flood, or wind damage, would your current insurance amounts cover the cost of rebuilding? Outdated insurance coverage limits that don’t reflect the current costs of rebuilding could make it impossible to recover from a major loss. Review your policy and adjust coverage to take the effects of inflation on building costs into account.Work with your tax and financial professionals to come up with ideas to combat inflation’s effects on your business.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
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