gas prices on the rise again! And obviously it affects every aspect of a small business owner. But even in this dowdy economic condition, some people still have the luxury of going about their everyday lives without adjusting their budget. Hopefully things will look way up in 8-10 years when I decide to open my store.
I read this article via www.watchmefranchise.com and got the 10 ways rising fuel costs can affect small businesses. Some of them are obviously valid, some of them, I can debate.
1. Direct Cost Increase
Well, presuming that I actually start driving myself around when I get older and as I get up on my own feet after opening my store, I won't have a chauffeur. So the trips to Fed-Ex or picking up shipment, etc., multiple times a week would probably drill a couple holes in my wallet.
2. Increased Shipping Costs
Vendors will charge more to ship.
3. More Reliance on E-mail and Fax
Not like it's not like that now. But imagine relying solely on this technology.
4. Less Employee Candidates
I don't think this will be a problem if a person truly desires a job. You can hire friends or acquaintances.
5. Higher Wages for Employees
It's funny how the economy has faltered but yet the minimum wage in MASS has risen from $7.50 to $8. Thank you Mr. Patrick!
6. Less Face to Face Meetings
I don't think this one's too valid. I don't plan on having too many employees working for me when I start off anyways. And plus, they better drive out to see me if I'm their boss!
7. Higher Prices for Prime Locations
Definitely! For downtown locations or locations close to train stops. I don't plan on opening my store in the boonies, so.
8. Less Drive by Traffic
No problem if you get a prime location, right?
9. Consumers with Less Disposable Income
This one's a biggie! I can actually relate this to myself. I used to shop, but now it's a luxury to just buy something small. People are also more motivated to steal.
10. Less Profit per Sale
here's the link to the article