Is entrepreneurship a surefire guard against the impact of inflation? No. But there’s a reason Warren Buffett thinks “a brand is a wonderful thing to own during inflation.”

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It’s because the right kind of business can provide income that scales with inflation. Here’s how it works…

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Inflation is the steady rise of prices over time. The only way for a salaried employee to keep up with those price increases is for their paychecks to grow at the same rate, which may not always happen.

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Entrepreneurs have an option—they can increase prices. As the cost of living increases, so does the revenue from their business.

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Here’s the catch—it only works if you’re selling a solution that’s in demand. Otherwise, customers may decide that they really don’t need your services after all and stop buying.

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So if you’re looking to inflation-proof your income, a business may be just what you need. But make no mistake—the industry and mentorship you choose to start that business will mean the difference between inflation-proof, and inflation-vulnerable.

“Warren Buffett says these businesses do the best during periods of high inflation,” Nicolas Vega, CNBC, Aug 19 2021, https://www.cnbc.com/2021/08/19/warren-buffett-inflation-best-businesses.html

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