Another day, another new buzzword.
But in this case, ‘stagflation’ isn’t something new. It was a term coined in the 1960s to describe an economy with high inflation happening at the same time as a stagnating economic output. Put simply, it means prices are rising but our wages aren’t going up in line with those increases, so we have less expendable income as basic material goods (fuel, medicine, food) becomes more expensive.
It’s getting a lot of attention in the media, stagflation, but it’s really important to remember that the networks are preying on your anxiety. Bad news and alarming headlines are there to try and keep you watching: I can’t be the only person who thinks CNN stands for Constantly Negative News!
Yes, it’s something to be aware of and have in the back of your mind and you should obviously be prepared to tighten your belt, but the last thing you should be doing is panicking – when the economy is looking rocky, it can be tempting to try and mitigate potential losses using impulsive, fear-based strategies. But if you’re going to make any changes, don’t try and drastically cut your way to success – it doesn’t work! Don’t make so many cuts that you find that the business can’t run! Instead, Focus on the opportunities in front of you. Get close to your customers. Talk to them and ask them what they’re doing, really try to understand what you can do to help them.
Have there been redundancies in your sector? If companies are laying off people in preparation for an economic downturn, this could be a fantastic opportunity to get those key team players that your company needs.
So, if this is something you’d like to learn more about, then watch our WiserWednesday panel event on ‘Founder Fundraising in Stagflation’. Over 100 other leaders signed up to hear from our exciting list of panelists.
It was a brilliant discussion about navigating fundraising, especially in challenging financial backdrop. Key takeaways: – if you ask for advice, you’ll get money, if you ask for money, you’ll get advice!! Always build your fundraise through human outreach to connect with potential funders before opening your round. ‘When everything is rosy, it’s time to be cautious. When everyone is screaming it’s the end of the world, plant a tree!’. Our awesome panellists this episode are Jennifer Clamp (aata), Kirsty Ranger (ISQ Crowdfunding), Prateek Sanjay (Foundraisr) & Liam Ray (Virtus Energy). Host is James Potten. Enjoy!