March Madness is here. Fortunately, I’ve warmed up by being mad all February.”
Beware the Ides of March! The 15th day of March may have come and gone but there seems to be some truth to Shakespeare’s warning of dangers and bad omens on this day which, of course, has lingered throughout the month and will continue for many months to come...
Although the list of consequential and unfortunate events has been endless in March and beforehand-here is a list of my top ones right now:
War in Ukraine: Unprovoked invasion, violation of human rights and country sovereignty, avoidable death, destruction and displacement of millions.
Judiciary Committee: Although not the same...but hurtful and maddening...Senator's Ted Cruz and Lindsey Graham blatant bigotry, disregard and overall belittling behavior when questioning our next Supreme Court Justice-- Ketanji Brown Jackson.
Supply Chain Disruptions: Due to US sanctions on Russia and lingering effects of COVID --consumer prices increased by 8 % among ongoing supply shortages and inflation.
U.S. Inflation: Speaking of inflation--as a result of ongoing sanctions on Russia and spikes in crude oil & gasoline prices US inflation rate has surged to 7.9%-- a 40-year high.
Fuel and Gas Prices: $6.50/gallon--Seriously? Between long lines at COSTCO for "cheaper gas" and rapidly escalating energy prices---many Americans are driving on empty rather than spend $100 or more to fill-up.
The Great Resignation: In January another 4.3 million Americans voluntarily quit their jobs. And, although better than the previous 3 months quit rate--its still close to 2.1 million more than before the pandemic.
US Job Openings: There are 11.3 million job openings...sounds impressive, right? Well, it would be...but, only 43% of these jobs will be filled....huh?
Car Shortage: I love this one--is your lease up? Have you tried to buy a new or used car? Well, things have changed--With the ongoing chip shortage--there is little to no inventory on the lot. As a result--manufacturers in the US, Japan & China have cut production & raised prices. Today, if you do find a car---it's not unusual to find one at 25% more than the MSRP sticker price. Of course, used cars are logical alternatives... but, finding one with low miles and a competitive price is pretty near impossible.
This is a very trying time not just for me personally, but also for small businesses trying to navigate these treacherous and rapidly changing waters...Check out these findings from a recent survey from Clarity Capital on small business owners:
17% of small businesses are worried about going out-of-business this year
61% report finding it difficult to stay afloat in the current economic environment
61% were negatively impacted by supply chain issues
26% were negatively impacted by labor shortage
22% were negatively impacted by employee retention
So, what can small business owners do?
Be Flexible – rethink your business approach, look for alternative sources, innovate as needed and pivot to new markets.
Review Your Business Financials – take a careful look at your revenues and expenses, ramp up debt repayment or refinance variable interest loans into fixed rate ones.
Increase/Hold Prices – if possible, maintain price points but not to the detriment of your business. As needed, increase your prices in a slow, steady manner...you may be pleasantly surprised at your customer's understanding.
Communicate with Your Clients - share the basics as to why you are raising your prices while focusing on the benefits to the customer.
Cybersecurity - protect digital assets as well as hardware and software. The simplest, most cost-effective thing you can do to enhance cyber preparedness is multi-factor authentication for your customers, vendors, employees, etc.
Take a Stand - consumers now have high expectations of brands and how they respond to various challenges.
Enduring higher gasoline prices, rising inflation and supply chain disruptions seems like a relatively small price to pay to help support a fledgling democracy fighting for its existence. And some parts of the world are likely headed for severe food shortages and worse so try to keep it in perspective.
For more business tips, check out my other articles. And for help with navigating your business amid the current economic environment, visit my website, email me at debbieg@bizmadeez.com or call me at (310) 621-8784.