Did you know that more than 20% of small businesses in the United States had to close their doors for good last year?
COVID took a major toll on these companies, but there are other issues that are impacting the stores that survived.
If you want to learn more about small business challenges, there are a few factors to consider.
Read further to learn about the most difficult challenges that are impacting mom and pop shops!
1. Increasing Cost of Goods
One of the largest struggles that mom and pop shops are facing is the increasing prices of goods.
Whether it’s a coffee shop, tool shop, or candy store, the prices are increasing when the owners go to make purchases. Since they are having to pay more through their vendors, their prices are also increasing. The trouble with this is that people can often find a cheaper option online.
Wheat, oil, and meat prices are dramatically increasing. This makes it difficult for these stores to function when they can’t get their basic needs.
2. Struggles With Staffing
If you own a small business, you won’t be surprised that these small shops are also suffering from mass resignation.
With more people quitting their jobs, these mom and pop shops are having to function with skeleton crews. Often, they are running the stores by themselves, which impacts the quality of service. By offering more money and improving training, these companies are finding the right people.
3. Old Buildings
Whether you own a family grocery store or retail space, you need to have good curb appeal.
Many people are recommending store remodels to companies that are suffering. Although this might be a risky investment, you will either see your money come back in return or get it in a sale.
When you are fixing up an old building, make sure you preserve its natural fixtures and only change what’s necessary.
4. Rising Gig Economy
The gig economy is helping a lot of people make some money, however, it’s harming the smaller shops.
As more chain stores offer delivery services, people aren’t leaving their homes. They are also buying all of their items from these chain stores and not even comparing prices with their local shops.
Instead of hiring someone to get your groceries, head to the store and start building a connection with a professional.
5. Cost of Property
Since the pandemic began, the costs of properties have dramatically increased.
A new problem that small shops are facing is the ability to pay their rent. As each community expands, the cost of living is increasing and most companies can’t keep up with the rise.
Pay attention to real estate trends so that you can buy and sell at the right times.
What’s Killing Mom and Pop Shops?
From employee retention issues to rising costs, mom and pop shops are suffering.
If you don’t own a shop, you must show your support to these businesses. The costs might increase, but that’s a sacrifice for getting quality products and services. These mom and pop shops are what helped form our country and they can’t disappear.
Don’t be afraid to make a change in your community to help stand up for them.
Make sure you check out our site for more content about how to run a successful company!