Shaf
Verified member
The COVID-19 pandemic provided the perfect weather for the current inflation we are seeing and things are not looking good now or in the foreseeable future.
There were supply chain issues, decrease in supply with increasing demand for a while, people lost their jobs as businesses could no longer support them. The provision of stimulus checks also lead to a temporary increase in the amount of money circulating, leading to increased prices.
This rising inflation affects everything and small businesses are hit hard, some of them have to close completely because they can't afford to run continuously at a loss.
There is an increase in costs of operational services and production. Labour has decreased but the cost of hiring the few available is now higher than it was before.
This will directly lead to a decrease in the profits you can make as a small business.
Inflation also affects the purchasing power of consumers, making them cautious about how they spend money. Often they look for cheaper alternatives or forfeit some things entirely.
A small business owner should look for ways to cope so that you don't run out of money and resources to remain solvent.
There were supply chain issues, decrease in supply with increasing demand for a while, people lost their jobs as businesses could no longer support them. The provision of stimulus checks also lead to a temporary increase in the amount of money circulating, leading to increased prices.
This rising inflation affects everything and small businesses are hit hard, some of them have to close completely because they can't afford to run continuously at a loss.
There is an increase in costs of operational services and production. Labour has decreased but the cost of hiring the few available is now higher than it was before.
This will directly lead to a decrease in the profits you can make as a small business.
Inflation also affects the purchasing power of consumers, making them cautious about how they spend money. Often they look for cheaper alternatives or forfeit some things entirely.
A small business owner should look for ways to cope so that you don't run out of money and resources to remain solvent.