fluctuating costs

How Can Businesses Prepare for Sudden Cost Fluctuations?

Preparation is key to managing sudden cost fluctuations. Businesses can adopt the following practices:
1. Risk Management: Developing a comprehensive risk management plan to identify potential cost risks and mitigation strategies.
2. Diversification: Diversifying suppliers and revenue streams to reduce dependency on any single source or market.
3. Emergency Funds: Maintaining a reserve of funds to cushion the impact of unexpected cost increases.
4. Flexible Contracts: Negotiating flexible contracts with suppliers that allow for adjustments based on market conditions.

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