EVEN without the Bangko Sentral ng Pilipinas telling us that inflation hit 11.4 percent last June (the highest in 14 years), we know that prices have gone up way beyond expectations. Just last year, in June, inflation was at 2.3 percent. We feel the pain, don’t we, every time we gas up, pay for groceries at the supermarket, or fork over money for FX fare.

Businesses have been feeling the pinch too, and my dad’s fave binalot outlet in Silang, Cavite is no exception. The chicken adobo binalot he buys regularly has shrunk in size.

Other than shrinking portion sizes or adjusting prices, what can business people do in these tough times when business may be slower? Rather than wallow in self-pity, here are some things you can do:

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Putting up and maintaining an office is getting costlier every day. If you have been working out of your home for some time now and are put off by the idea of putting up a brick and mortar office due to cost, a virtual office may be the answer.

Virtual offices have been around for quite some time now in major cities in the world like New York, London and Hong Kong. It’s great for those who don’t need an office full-time but need an office presence. Companies that are downsizing or are just starting up may also benefit from having a virtual office.

Just what is a virtual office? Tina Cuerva, marketing consultant of My Office , a Makati-based company offering virtual office services, says: “A virtual office lets the entrepreneur enjoy the benefits of having a traditional serviced office without having to physically occupy office space. This way, an entrepreneur will still have a professional image without having to spend much on capital.”
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In the past three days, I have been following Doris Dumlao’s three-part story on Negros-based Victorias Milling Corporation (VMC), the largest sugar company in the Philippines.

This was the sugar company started in 1919 by Don Miguel Ossorio. In the decades that followed, VMC pursued expansion, going into non-core businesses such as engineering products and services, food processing, organic fertilizers, shipping, management and consultancy, real estate, and agribusiness. Most of these were financed by borrowing funds from banks.

But then came the 1990s and there was a slump in sugar prices. The Asian currency crisis wreaked havoc on the economy. Add to that a case of irresponsible management which plundered VMC and the company soon found itself in hot water. In July 1997, VMC defaulted on its debts.
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WITH gas prices increasing weekly and everything else shooting up (blood pressure included), businessmen are on the lookout for ways to cut costs.

I came across one new venture that will help micro-businesses and small businesses save on admin expenses. Great for start-ups too.

It’s virtual business services. A new company called The Back Office just started offering this, taking a cue from the virtual assistant service offered in other countries.

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NINE point six percent. That’s the inflation rate for the month of May, as announced by the Bangko Sentral ng Pilipinas (BSP). It’s the highest since January 1999 when the inflation rate then was 10.5 percent.

Already, we have been feeling the effects of this: the prices of gas, food, and other basic items have gone up steeply. Blame it on supply problems: With lesser rice supply available, its price has increased. With the price of oil running away at more than $130 per barrel, the prices of gasoline and other oil products have likewise hiked up. And as we know from experience, when gas goes up, everything else follows.

Consumers are expected to lower their spending to cope with the high prices of basic commodities. That may mean bad news to businessmen especially those whose products are considered nonessential.
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