Inflation is hitting small business owners hard
Aaron Mulherin, owner of AM Glass Repair in East Central lowa is extremely worried about the impact of inflation on his small business. He says he is slammed with price increases on materials of 12% to 15% every four to six weeks.
“Due to these price increases, AM Glass Repair is forced to purchase materials more than six months ahead of time to lock in lower pries, which causes cash flow issues,” he explains.
Also worried is Dennis Ittenbach, owner of H.O.P.E. Life, Lymphedema and Rehab Center. He says prices for services and supplies have risen at a surprising rate, even though the reimbursement from third-party payers in the medical fields have gone down. “Because I am a health-care provider and 80% of my patients are Medicare or Medicare alternative plan patients, I’m not able to adjust my prices,” Ittenbach adds. “In fact, over the last year we’ve had a reduction in our reimbursement which significantly affected our profit and is proving unsustainable.”
The rising cost of goods and services is a major concern among small business owners.
In a new survey, SCORE finds that almost one in every three business owners report that they are extremely worried about inflation. They ranks it as a top business concern. Another two-thirds say they are generally concerned and are watching rising prices closely. Only 7% of small business owners say they are not concerned about inflation impacting their companies.
You are not alone
“Small business owners have been inundated with curve balls throughout the past two years with no signs of slowing down,” according to SCORE Vice President of External Relations Betsy Dougert. “We want entrepreneurs to know they are not on this journey alone. SCORE has a plethora of resources, including small business experts, to help them navigate challenges and thrive.”
SCORE provides mentors to America’s small businesses and is a resource partner of the U.S. Small Business Administration.