Kael Garcia and David Angway RFP

00:00 Show Opening: Entrepinoy Special
00:33 Today's Topic: Rising Prices and Small Business
01:27 Introducing Kuya David Angway
02:17 Shout-Outs and Greetings
03:09 What Is Inflation? The Silent Profit Killer
04:29 What Inflation Does to a Business's Cash Reserves
04:56 Warning Signs: Fewer Customers and Closing Stalls
05:50 Oil Prices, Energy Costs, and the Perfect Storm
06:42 Raise Your Prices in Tranches
08:00 Reward Your Customers: Loyalty Cards
08:53 Cutting Costs Carefully: Rotating Shifts Before Layoffs
10:34 Shrinkflation and Bulk Pricing
11:53 Monitor Which Strategy Actually Works
12:18 When Expenses Outrun Sales: Emergency Fund First
13:09 Have an Exit Strategy and Know When to Cut Losses
14:54 Do Not Be So in Love With Your Business
15:47 Should You Take a Loan?
17:02 Sell Before It Sinks
18:20 The Copy-Paste Problem: Competitors Next Door
19:12 Borrowing Wisely: Fund More From Your Own Capital
20:02 The Rising Dollar
20:29 Who Gains From a Strong Dollar
22:11 How a Strong Dollar Hurts Importers
23:05 The Role of the Central Bank and Easing the Pain
23:57 Let Us Pray: God Is Still in Control
25:15 Consumer Culture: Mall Prices vs Palengke Haggling
27:27 Haggling Without Abusing Others' Grace
28:47 30-Day Action Plan for Small Business Owners
29:37 Know Your Numbers and Face the Reality
30:27 You Were Not Meant to Do This Alone
31:45 A Person Cannot Live Without Hope
32:13 Speak Life Into Your Business
33:07 Prayer for Filipino Business Owners
36:37 How to Connect With David
37:31 Host's Closing and Thanks

Inflation Rarely Closes a Business. Rushed Decisions Do.

When I sat down with Kael on FEBC's Entrepinoy Special, the dollar had just crossed 64 pesos, fuel prices had climbed again, and headline inflation was running at 7.2 percent, with transport and oil costs near 14.6 percent. Every business owner listening could feel it.

Yet the question I kept coming back to had little to do with those numbers. What separates the owners who get through a season like this from the ones who close their doors?

After years of sitting across the table from entrepreneurs, my answer is simple. Inflation rarely closes a business. Rushed decisions do. Here are six moments of clarity from that conversation.

Start with what inflation really does. Say your bank pays 1 percent a year on your savings while prices rise by about 6 percent.

Your money earns a small promise and delivers a real loss.

I call this the silent profit killer. A consumer feels it as a smaller grocery basket.

You feel it as cash reserves that lose buying power while the cost of raw materials, packaging, delivery, rent, and utilities keeps climbing. Your sales can look steady and you can still be getting poorer every month.

The first eureka is that your price increase should follow your customer's patience as well as your cost sheet.

Many owners panic and raise prices by 20 percent in one move. A 100 peso item becomes 120 overnight, and your loyal regulars quietly start looking elsewhere.

I would rather you earn a smaller margin than lose the customer entirely.

Raise the price by 5 pesos this quarter, another 5 next quarter, and reach your target in four steps. Customers barely notice 5 pesos. They notice 20.

Then give them a reason to stay, such as a loyalty card that rewards the tenth visit with a free meal or drink.

You raised the price and gave something back, which keeps the relationship intact.

If a price increase is not an option yet, you have other tools.

You can reduce the serving size while keeping the same price, which is called shrinkflation.

You can offer bulk pricing, the way fast food chains steer you toward combo meals instead of single items.

Whatever you try, watch how your customers respond. A strategy that is not working is a slower way to lose them.

The second eureka is that cost cutting has an order.

Before you lay anyone off, look at what is already committed.

If you paid six months of rent in advance, you cannot recover it by downsizing in month three.

Try rotating shifts first.

Layoffs spread fear through the whole team, and your best people, the ones a competitor would love to hire, are usually the first to leave.

The third eureka surprises people the most. Decide your exit before you need it.

Many owners I meet at the start never realized they were allowed to leave.

Set the rule while your head is clear. If you have worked at it for six months, tried everything, and you are still losing money while debt grows, treat that as your signal to sell or close. L

osing 20,000 pesos is better than losing 200,000.

That is a loss you chose to limit, and it is a very different thing from failure. A

lso be careful not to fall so deeply in love with your business that you stop thinking logically.

When the owner stops growing, the business stops growing. You become the ceiling.

The fourth eureka is about borrowing.

A loan is not a cure.

If a second coffee shop opens next to yours at a lower price, fresh capital poured into the same model gives you the same result with a bigger obligation.

Money buys time and equipment. It does not buy you a market.

If you do borrow, I suggest the loan covers about 40 percent and your own capital covers 60 percent, because if the business falls short, the bank, your suppliers, and your staff still need to be paid.

And if the business cannot be saved, selling it for 150,000 pesos beats watching a 200,000 peso investment sink to zero.

The fifth eureka is the dollar.

When the peso weakens, families receiving remittances,

BPO workers, and virtual assistants who earn in dollars benefit. Importers feel the opposite.

If your supplier bills in dollars, the same budget buys fewer containers, and a healthy 40 percent margin can shrink to single digits.

Know which side of the exchange rate you stand on, and plan before the next move happens.

Now the part you can act on this week. Over the next 30 days, do three things.

First, grow your cash buffer as much as you can, and never mix personal money with business money.

Second, sit down with an accountant. I compare it to lab results from a doctor.

You cannot treat what you have not measured.

Third, if you are carrying debt, consider selling a portion of the business, perhaps a 20 percent stake, to a partner who brings both cash and counsel.

Many of us want to be strong and independent. This season rewards the owner who is willing to invite help.

The sixth eureka may matter most. A person can live about five minutes without oxygen, but cannot live one second without hope.

If everyone around you is negative, find other business owners who understand what you carry.

An African proverb says that if you want to go fast, go alone, and if you want to last, go together.

Hope often arrives through a conversation with someone who has already walked the road.

For me, that hope rests on faith. I believe God is still in control of leaders, markets, and the exchange rate.

The God who raised Jesus from the dead can restore your business, your finances, and your relationships. Pray, plan carefully, and keep moving.

If you want help working through your numbers, you can book a session with me at davidangway.com.

© 2026 David Angway

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