Inflation rates in the Philippines have gone up 5.2 percent last month due mainly to the demand for food and accommodation services. Inflation can negatively impact your business operations from rising prices of materials to complicating budget planning. However, your business can prosper in an ever-changing economic landscape by applying sustainable growth strategies. 

Innovative approaches and a focus on efficiency and adaptability can help your business overcome hurdles and survive inflation. Here are 4 practical steps that you can take to navigate complexities for long-term business resilience and success.



1. Negotiate with suppliers to build capital faster

Businesses should focus on improving their financial resources and protecting their capital base. Negotiate effectively with suppliers through strategic discussions and market research. This is an effective strategy for businesses to secure favorable terms and conditions that contribute to overall growth. 

This involves negotiating discounts for bulk purchases, extending payment terms, or exploring alternative financing options such as vendor financing or trade credit. By cultivating strong relationships with suppliers, you can foster collaboration and mutual support, leading to enhanced value and cost savings over time.


2. Utilize local materials and talent

In today's competitive business environment, optimizing earnings capacity is necessary for a successful business. Businesses that source materials locally can reduce transportation costs and minimize supply chain disruptions. Tapping into local talent pools can also provide access to skilled workers at competitive rates.

Local sourcing fosters community engagement and support that helps your business long-term. Embracing local resources not only bolsters the bottom line but also strengthens relationships with stakeholders and promotes sustainable growth.


3. Future-Proof Your Business  

Many businesses serve niche markets that did not exist ten years ago. The inflationary pandemic and post-pandemic periods are responsible for turning numerous startups into essential services. Can you imagine life without video conferencing software, food delivery apps, or telehealth providers? 

Companies that survive inflation often leave many unprepared business owners in their wake. As a Partner for Life, Sun Life is here to guide you by providing expert financial advice and suitable product solutions as you go through the start-up, expansion and legacy phase of your business. 


4. Build a financial safety net

Having a financial safety net helps to soften the blow when unexpected challenges arise. It is all about setting aside funds to cover future losses or emergencies. This safety net can take different forms from cash reserves to diversified revenue streams or business insurance coverage.


Sun Life offers insurance packages that will empower you to achieve your personal health and financial goals. Make the bright choice and talk to one of our financial advisors to help build a brighter future for your life today!


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