“How Do I Survive Inflation?” by Megan Murphy
The economy seems to flex in several directions as the world rushes to hire in some industries while there are massive layoffs in others. And, how badly is inflation costing small business owners?
One of the most prominent spots for layoffs has been the tech industry. But this can partially be explained by the cause. When the world was told, “stay at home,” the sales of several tech-based items like at-home gym equipment, televisions, new phones, and other gadgets designed to comfort skyrocketed in sales. This prompted a need for new employees to help build, ship, and manage orders. Now layoffs are seemingly everywhere in the tech world, but this is partially due to societal changes. The demand for these same projects has lessened as people returned to living out-of-home lives.
But that’s not all there is to it.
Although tech industries are laying off employees because they have too many workers and not enough work, other industries like entertainment, pharmaceuticals, health insurance, and food tech are making layoffs to fight the rising cost of inflation around the country.
The cost of business is slowly but steadily rising to new heights, and while big corporations may have only recently started to feel the burden, small businesses are left to fight tooth and nail for their budgets.
“Large businesses have access to large savings accounts and abundant capital markets, but when small businesses feel an increase in prices, it really hits their bottom line,” economist Luke Gusto said in this CNBC article on the rising price of doing business.
Just how much is the cost of doing business rising?
About 9.1% just in the last month! And it keeps growing. Experts say this is the highest inflation gouge since 2005, which can be seen in rising gasoline, food, and housing prices. Due to this, 89% of business owners say they’ve had to raise prices and cut staffing.
The quickest answer might be raising prices, as some owners saw material prices double in a few months. But that may only make sense for so long. Eventually, it makes more sense to reduce staff.
“According to our survey, as many as 42% of small-business owners have reduced the number of employees on their team,” says business.org.
Yet, despite all of these rising prices, Americans seem to be spending just as much money as before.
How do you keep up with clients when you can’t afford staff?
Since handling things with the skeleton crew you have left isn’t a viable option, a solution that makes more sense is to work with an executive virtual assistant. (Especially if your needs include administrative staff to keep day-to-day operations running smoothly without the overhead costs!)
Read our monthly blog and find out how working with an EA can save you money and help you tackle tasks so you can stop stretching yourself and your staff thin!
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