Among small business owners, inflation is the top stressor. Your customers aren't the only ones affected by rising prices. As a result of inflation, small and medium-sized businesses are also facing higher costs to operate.
In a report by Xero, 48% of U.S. small business owners have experienced an extreme or high impact from inflation on their cash flow over the past 6 months, and 44% expect inflation to continue to have similar impact over the next 6 months. Additionally, 45% of small business leaders have sacrificed their own paychecks and 43% have lost potential business opportunities.
In most cases, increases in supplier expenses result in price hikes. Almost nine out of ten small business owners have been affected by rising costs of supplies and services, according to Business.org. In the survey, one in four respondents reported a 20% increase.
As labor, raw materials, energy and shipping costs skyrocket, running a business is considerably more expensive than it was in years past. Digital.com estimates that 65% of small business owners fear permanently closing if inflation continues to rise.
At System4 IPS, we are a small business, like many of you. Along with our hundreds of customers, we are feeling the squeeze. Being a commercial cleaning service vendor, labor costs are an integral part of our business.
As costs increase across all sectors of the United States, keeping facilities clean continues to be important to employees, visitors, and customers alike. We are working to pass along savings to our customers while getting creative with efficiencies.
Our cleaners are nearby and are ready to assist you.
Commutes cost money and time. Cleaners are being added to our network throughout your region. Ideally, your cleaning staff lives close to your facility. Their commute time and gas costs are reduced as a result.
Our investments in operations software platforms could save you money in the long run.
Knowledge is power. With state-of-the-art communications and database platforms, we are able to communicate continuously with our affiliates across southern New England. Tap into our network. The experience and knowledge they possess could be beneficial to your facility.
For example, instead of calling an expensive national company for a last-minute carpet cleaning, contact us. Our network of affiliates own carpet cleaning equipment and have decades of experience to manage your cleaning job. It is very likely that our cleaning professionals will be able to complete the project faster and more cost efficiently than the national competitors.
We evaluate cleaners' hourly rates on a regular basis.
Our team sends out 100+ proposals every month to clients and prospects. In other words, we're in constant communication and negotiation with our cleaning professionals. With our expertise, we are able to pinpoint the best value in the ever-changing labor market.
Are you receiving too many complaints about your cleaning staff? Wondering how much quality, consistent cleaning staff would cost? Here's an online calculator that will show your price immediately.
No matter whether you are a new sole proprietor or an experienced medium-sized business owner, you are likely worried about inflation and a potential recession. 88% of small business owners share your concerns, according to the US Chamber of Commerce. Getting through this crisis requires understanding the problem and making a plan to deal with it. That's exactly what this guide will help you with.
Your $1 buys you less.
Inflation occurs when prices increase faster than money's value, which means $1 will buy less over time. Inflation is defined simply by Forbes.
It’s a delicate balance when raising your prices.
US Chamber of Commerce research in March 2022 found that 67% of small businesses have raised prices due to inflation pressures. Increasing prices can be detrimental to customers, especially for items with more price flexibility than necessities like gas and groceries. There is no doubt that customers dislike price hikes, and business owners and managers need to maintain a delicate balance between keeping margins healthy and maintaining customer trust.
It’s more than you think.
The National Federation of Independent Businesses released a report (updated 2024) that identified inflation as the biggest challenge small businesses face this year, with 91% of respondents stating that rising prices are impacting their businesses to a substantial or moderate degree.
Here’s some strategies to help protect from inflation and improve resilience.
Pricing should not be set and forgotten, even in the best of times. Continuous price optimization can help alleviate the strain caused by inflation that has been increasing faster than ever before. The key is to assess your prices frequently and make minor adjustments on a regular basis.
Inflation makes keeping track of your cash flow particularly important. In the event that your expenses are rising, sales are declining, or payments are being slowed by customers, you need to act promptly.
You might be better off focusing on efficiency than growth due to fewer resources. Invest your time and energy in areas of your business that have the greatest profit margins or that are more resistant to unpredictability. As the economy levels out, refine those aspects so that new ventures can be prioritized.
When your business relies on one supplier, it is more cost-effective, but it can leave you exposed to interruptions and economic shocks. Partner with a few other suppliers to reduce risk and build supply chain resilience.
In addition to helping you strategize, a support system can offer solutions you might not have considered. You can often network and learn what tactics people are using at your local Chamber of Commerce and/or industry association. If those options aren't available or the concept concerns you, you can find plenty of online forums that can assist you.
Concerned about a staffing shortage and whether you are using the right cleaning service for your workplace? It's not too late to find the perfect janitorial team that will keep your workplace clean and safe. Look for solid custodian referrals and consult with System4 IPS.
Which custodian or janitorial team is best for you? System4 IPS specializes in creating customized janitorial programs that meet the unique need of businesses like yours!
If your workplace experiences a singular COVID-19 positive case or outbreak, call System4 IPS and schedule your disinfection service today. Our professional team listens to your needs, requirements, and timing. See our many satisfied customer testimonials and public Google ratings.