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Current small business challenges and solutions-Small Business Corner

Having the ability to pivot speaks to the resilience of many small businesses to define—and redefine—their success, even through the most difficult and uncertain of times. Here are some current small business challenges and possible solutions.

Inflation

Many small businesses are concerned about how inflation will impact their businesses. Inflation seems to be the biggest challenge impacting companies of all sizes, but especially small and medium sized businesses. As prices for material goods, labor, and other services go up, businesses must find ways to offset these costs. Therefore, many small businesses have had to increase the prices of their goods and services. One solution to inflation is looking into financial automation options to gain more visibility into your finances to help you with your cash flow management.

Dealing with labor shortages

Many small businesses are still struggling with labor shortages post pandemic. This is challenging for small businesses as many need to consider how best to meet workers’ needs in order to retain their current employees while also recruiting new ones. Some solutions for small business owners when it comes to dealing with labor shortages is to hire interns, offering better benefits and implement a employee referral program.

Interest rates

For small business owners who often rely on credit and loans to finance their business operations, rising interest rates can be a major concern. However, in addition to cutting costs where you can, you can also look into consolidating or refinancing your debt.

Supply chain issues

Small businesses have to find ways to keep up with consumer demands while competing with larger businesses to get the goods and services they need to keep their businesses running—and keeping their customers happy. Changing your business approach can be a valuable method for making sure you can survive any supply chain issues. Let supply chain problems also be an opportunity!

Overall, understanding current issues, building a plan, and implementing that plan are the best ways to prepare for any possible disruptions to your small business that may arise.