Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
There is a frightening truth that maintains all the owners of small businesses at night: they are always one step away from the bankruptcy.
Every year there is an event: it could be the loss of a key employee, a long-time provider who comes out of the business or the impact of a natural disaster, but there is an important shake that threatens to put them below.
This year, the event that will affect most small American companies is the Threat of widespread rates.
Yes, imported goods rates could make some companies a higher cost. But this is not necessarily the problem. Companies often change costs, due to a variety of factors, and companies can usually navigate it.
The problem is the continuous uncertainty of the situation.
These changes in policy of great interest related to rates have been accompanied by mixed messaging. Business owners are asking: Which countries have an impact? What is the new rate of my materials or finished goods? When does this come into effect? Is that Short -term negotiation tactic or long -term policy?
Business owners are comfortable to make difficult decisions. But in the face of uncertainty, small businesses respond to hitting the pause button. What does this mean? Are Contracting of freezing. Workplace publications for open positions are being demolished and leaving employees are not being replaced. They are delaying investments. In the short term, this means that they do not buy inventories. More important, they do not invest in the future, shouting investments in technology, facilities and other infrastructures needed to advance a business. These movements will delay sales and, most importantly, make it difficult for long -term growth and innovation.
For those companies that have decided to be quick to act, efforts seem a bit looked at, depending on the line of reversing shipments through another country or adjusting the billing process with a provider with the hope of reducing the impact of rates on their product. It is difficult to fail a business that uses its time and resources to reduce costs, system skirt or pursue a lagoon if it means they can continue to achieve a profit. But this activity is not what America has marked, since we have been trusting small businesses for some time now to devote its time and resources to innovate in the areas of product development, process optimization and sales expansion.
An action that I do not hear is the interest in the companies that make the US again. Being a domestic clothing manufacturer, I have an ear near the ground for the production and capacity of our industry. This is surprisingly different from the response during Covid pandemic, when small and old businesses gathered around the idea of manufacturing in the USA, and many made significant advances to make it even for a short period of time. In my world of clothing manufacturing, rates will reach many companies. At the same time, I know three long -time manufacturing operations that will probably close the doors in the coming months due to lack of demand.
How can small businesses survive the uncertainty of rates?
North -American business owners are resistant and many will survive uncertain moments. But I do not know a single person who has a business simply because he wants to survive. They want to prosper. Small businesses are the backbone of the North -American economy and will only be able to continue to add value through the innovation, creation of employment and community participation once the uncertainty has been established around generalized rates.
Opinions expressed on Fortune.com Comments pieces are only the opinions of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
Read -Ne More:
This story originally presented to Fortune.com