3 Things You Should Know About Small Business: April 19
Cocoa Dolce is one of 10 small businesses in the Wichita community that are finalists for the 2012 Small Business Awards presented by the Wichita Metro Chamber of Commerce.
3. Inflation a big threat to small business. For small business owners, inflation is a big threat to profit and expansion plans, according to the Huffington Post.
Restaurants are being hurt by the rising cost of food - an 8% increase in eggs, for instance, is "eating away" at restaurants and bakeries, HuffPo says. The rise in cotton is hurting clothing manufacturers and retailers. And of course gasoline and jet fuel is crimping profit at any business that relies on sales calls. But small businesses are loathe to pass the higher costs on to customers. Many are instead choosing to absorb more costs.
These days "customers are demanding to pay less, not more. As a result, small businesses are often left with no options," HuffPo says.
But that doesn't mean they're running their businesses as normal. Some are adjusting their operations by incorporating more online training and meetings via webinars, instead of flying to see clients, changing menu items to include less expensive meats or fish. Many businesses are holding back on hiring and asking employees to take on more responsibilities, the article says.
-- Written by Laurie Kulikowski in New York.
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