Hey Entrepreneurs, If You’re Comfortable in Your Role, You’re Probably Doing it Wrong

Inflation in the United States is at its highest level in 31 years, according to the Wall Street Journal. Currently, it’s measuring around 6%, and complicating matters more is supply chain issues, along with shortages in key materials, as well as labor availability. Due to these factors, businesses are faced with the decision to raise prices. Although practically any business owner would resist, this just isn’t a sound strategy. When a company’s costs rise, it must pass on at least a portion to consumers. If businesses don’t raise prices, they obviously reduce their margins, thereby reducing their revenues. So, do small businesses deal with inflation? How Small Businesses can Deal with Inflation Fortunately, there are a few key strategies you can employ to help your company through an inflationary cycle. One step you can take is to offer bulk discounts on the products you sell, incentivizing your customers to purchase more in exchange for paying less overall. Another thing that you can do is to use the same strategy for wholesale vendors, asking them for a slightly higher discount in exchange for purchasing more inventory, or materials and supplies. The PPI — producer price index– measures the prices of goods immediately postproduction and serves as a critical indicator of the pressure facing companies. Companies that weathered previous storms the best took decisive steps to counter rising inflation by pushing through price increases consistent with PPI — but that alone was not enough. —Havard Business Review Small businesses can also help to offset inflationary pressures by scheduling jobs further into the future. Since materials are more scarce at the moment, this might not be a viable strategy. Of course, this does come with a good deal of risk, because you don’t have a crystal ball into what will unfold over the next several months. Yet another strategy for coping with inflation is to move to alternative materials and supplies that cost a little less. But, be aware this might also mean having to settle for a lesser quality product. 3 Biggest Inflation Price-Adjustment Mistakes to Avoid If these strategies aren’t enough or don’t appeal to you, there are definitely things you should avoid doing. Because any one of these will likely be extremely costly in one way or another. Here are the three most dangerous mistakes businesses really need to avoid in their inflation adjustment pricing: Apologizing. Sure, it’s human nature to empathize. But, you’re not the driving force in rising prices, nor are you in control of the elements that are causing inflation to rise. Although it’s tempting to apologize for having to charge more, it puts you in a position of weakness and can easily lead to you reducing prices at a time where it’s just not feasible. Overcharging. Obviously, price gouging is illegal. But, charging more (particularly above the new, higher market rate) in order to cover your rising costs and increase your margin at the same time is not advisable. Doing this will only result in driving customers to look for less expensive alternatives in your competitors and leave you with a guilty conscience. Undercharging. This is perhaps the biggest temptation small business owners face during inflationary periods. They empathize with their customers, being affected in their own personal lives too. So, they decide to keep their prices the same or only raise them as little as possible, thereby cutting into their margins. While customers will certainly appreciate the break, it could very well become a self-inflicted wound that leads to ruin. What other suggestions do you have for dealing with inflation price adjustments? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your strategies. Interested in learning more about business? Then just visit Waters Business Consulting Group.

As a business owner, you are responsible for everything that goes on in your company – from the big decisions to the small tasks. This can be a daunting task, especially when you have to deal with irresponsible employees. These team members can cause serious harm to your small business, so it is important to know how to deal with them. In this article, we will discuss why irresponsible employees are harmful to small businesses and ways entrepreneurs can handle them effectively. Irresponsible Employees Pose Risks and Do Real Harm The first thing you need to understand is why irresponsible employees are harmful to your business. These team members often make poor decisions that can cost the company time and money. They may also put other employees at risk by not following safety procedures or by not completing their work properly. Irresponsible employees have a direct impact on productivity and the bottom line. Workers who shirk their responsibilities and rely on other staff to pick up the slack can also damage workforce morale. In a small business, just one irresponsible employee can create a culture of irresponsibility throughout the company, particularly if other workers see that the behavior is condoned or, worse, rewarded with promotions or plum assignments. Managers must act immediately to correct irresponsible behavior and promote responsible actions. —Houston Chronicle Small Business In some cases, irresponsible employees can even cause physical damage to company property. All of these factors can have a negative impact on your business, so it is important to deal with them quickly and efficiently. How Business Owners should Deal with Irresponsible Employees There are a few different ways you can deal with irresponsible employees. Obviously, there are some methods that are easier and more comfortable than others. Regardless, it’s necessary to course-correct bad behavior or it will only worsen and cause bigger problems. If you don’t deal with this particular situation, you’ll most definitely regret it later on at some point. The first step is to identify the problem and talk to the employee about it. It is important to be clear about what you expect from them and what the consequences will be if they do not meet your expectations. In some cases, you may need to give the employee a written warning or place them on probation. If the problem persists, you may need to consider firing the employee. But, before you dismiss an employee for good, it’s best to give him or her a real chance to make the necessary changes. Clearly set out your expectations and then let him or her come up with a game plan that will allow him or her to reach those goals. This way, it gives the individual the power to take responsibility and to control their own future. If he or she shouldn’t make real strides, it’s not your fault. Of course, it’s also advisable to help him or her along the way. If you provide the right incentives but do not accept unacceptable behavior, it’s far more likely that you’ll see substantial progress. Overall, you ought to notice a significant improvement through the evolution of your employee. Although, even such a well-planned, pragmatic strategy won’t guarantee success. Some individuals just don’t have the temperament or disposition to be a good fit for your organization. If that’s inevitably the case, it’s best for your business to let him or her go and move on. Dealing with irresponsible employees can be difficult, but it is important to do what is best for your business. These team members can cause serious harm to your company if they are not dealt with properly. By taking the time to understand the problem and by using the appropriate disciplinary measures, you can effectively handle these team members and protect your business from harm. What other suggestions do you have for dealing with an irresponsible employee? Please take a moment to share your thoughts and experiences so others can learn from your perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.