- Local businesses have been struggling to stay afloat due to a lack of customers, rising costs, increased competition, and minimum wage increases in many states.
- Communities can help local businesses by building an online presence, organizing group buying events, and encouraging online reviews.
- Building an online community helps local businesses reach out to members of the community, while group buying events provide special deals and discounts to customers.
- Supporting local businesses is essential for any community, as these businesses are the backbone of our economy.
- By following the tips above, you can help your community and its businesses weather these tough times.
For years, local businesses have been the backbone of many communities. They provide jobs and economic opportunities for many people, creating a strong foundation for the community. But recently, some of these local businesses have struggled to stay afloat, especially during the pandemic.
Struggles of Local Businesses in the U.S. Communities
Countless businesses have closed due to a lack of customers, resulting in job losses and decreased economic activity. This can have a devastating effect on an area, with the effects being felt for years after. Here’s what you need to know about the struggles local businesses have in your community.
Lack of Customers and Revenue
Many local businesses rely on customer foot traffic to generate revenue and profits. However, with more people staying home due to uncertainty about the current economy and health concerns, fewer people are venturing out to shop at their favorite stores or try out new restaurants. As a result, these businesses have seen their revenues decrease dramatically as fewer customers patronize their establishments.
Rising Costs
The cost of doing business has increased significantly in recent years due to the rising costs of goods and services, including interest rates. These increases affect everything from materials needed to produce goods to wages paid out to employees, which can strain smaller businesses that may not have the resources or capital reserves needed to absorb the added expenses without taking a hit to their bottom line.
Growing Competition
In today’s digital age, it’s easier than ever for new competitors to enter any given market thanks to online platforms such as Amazon or eBay that allow anyone with an internet connection and a few hundred dollars to start up their own business in minutes.
This increased competition makes it harder for local businesses that do not have access to the same technology or resources as larger companies to remain competitive in their respective markets over the long term.
Minimum Wage Increases
Another factor impacting local businesses is the minimum wage increases that are being implemented across many states across the country in an effort to combat income inequality and boost wages for lower-income workers.
While this is beneficial for those who make minimum wage or close thereto, it can be detrimental for small business owners who may not be able to increase prices enough or cut costs elsewhere to keep up with these mandated wage increases without risking serious financial turmoil down the road.
Ways Communities Can Help Local Businesses
Local businesses themselves can fix these problems. However, communities are also responsible for the success of businesses in their local area. Here’s how your community can help with that.
Build An Online Community
Local businesses rely nowadays on a strong online presence. Building your community’s online presence can help local businesses reach out to community members. You can read a robust guide to building an online community to help you get started. The guide should cover topics like creating an online presence, using social media platforms, and optimizing search engine visibility.
Organize Group Buying
One way to help support local businesses is by organizing group buying events. This could be anything from restaurant discounts to discounted services. Group buying allows customers to purchase goods or services in bulk at a discounted rate from their favorite businesses.
If your community is able to get enough people together, then you can work with the business owner to offer special deals or discounts for your group. Not only does this help support the business, but it also helps create a sense of community among those who participate in the event. Additionally, it’s an effective way to spread word-of-mouth about the company since more people will be exposed to its goods or services.
Encourage Online Reviews
Another great way to promote and support local businesses is by encouraging online reviews on sites like Yelp or Google My Business. These platforms are powerful tools for getting honest feedback from customers who have had experiences with the business.
Encouraging customers to review their experiences not only helps potential customers get an accurate representation of what the company offers, but also gives business owners valuable insight into what they are doing well and what areas they need improvement on. Plus, positive reviews on these sites can boost search engine optimization so that more people find out about them!
Local businesses are the backbone of many communities, and it’s important to support them in any way you can. By following the tips above, you can help your community and its businesses weather these tough times.
