According to the Small Business Administration (SBA), the United States is home to more than 30 million small businesses that employ around 60 million people. The number of businesses declined at the height of the COVID-19 pandemic in late 2020, when the unemployment rate reached 13 percent. The national 2021 unemployment rate fell to just above five percent one year later.
Although the decline in the unemployment rate in 2021 gave struggling businesses a bit of good news, selling your business in 2022 has become more challenging which is why you should work with an experienced Sunbelt Business Broker. The acute labor shortage remains one of the most critical problems for businesses in 2022. However, several other issues present challenges that require the services of one of the best business brokers to facilitate the sale of businesses operating in the United States.
Let’s take a closer look at the most critical business problems in 2022.
Supply Chain Crisis
One of the most critical challenges for businesses in 2022 is operating in a climate where supply chain shortages and late deliveries have hurt operations. When a company experiences a supply shortage, customers pay higher prices on goods ranging from appliances to motor vehicle parts. The supply chain shortage has significantly impacted consumers that buy essential products such as groceries.
Until the logjam at international seaports starts to ease, businesses can expect to run out of essential products that form the foundation of their business models. Selling your business in an era of product shortages becomes challenging to do unless you partner with one of the best business brokers that understand how to navigate around supply chain issues.
Staffing Qualified Employees
Often referred to as the “Great Resignation” of 2020, the American labor shortage has prevented businesses operating in a wide variety of niches from growing sales. Service-based businesses such as those operating in the hotel and restaurant industries have experienced labor shortages that have led to reduced operating hours and the streamlining of products and services offered to American consumers.
Nearly two years after the start of the pandemic, many businesses continue to struggle to attract and retain qualified employees.
Cost of Retaining Qualified Employees
When there is an acute labor shortage, employers must invest more in retention programs. This means running a business in 2022 and beyond requires businesses to spend more money on compensation, including costlier incentive packages, such as benefits and bonuses. Smaller businesses operate at a competitive disadvantage when it comes to compensation. The cost of retaining employees in 2022 presents a financial hurdle that many smaller businesses have a difficult time clearing.
Although spending money on a retention program is expensive, not retaining employees is even more cost-prohibitive. According to the Society of Human Resource Management (SHRM), it costs the average American business between six and nine months of an employee’s salary to replace a worker.
Learning How to Manage Remote Workplaces
Despite returning to an almost normal business environment, many businesses have maintained at least a blended remote workplace. Businesses have discovered the economic advantages of operating under a remote work model, but unfortunately, they have not learned how to manage a remote workplace. Before the pandemic, the Harvard Business Review estimated just over seven million Americans worked online.
The number of part-time remote workers exploded in 2020 to nearly 11 million American workers during the worst of the pandemic.
Sunbelt markets over 200 business-for-sale portals, and we spend a lot of money marketing your business for sale, which is why we are so selective about the listings we present. We offer custom deal structures, dedicated financial advisors, and compelling marketing assets that get our customers the best price for their business. Sunbelt takes the time to pre-screen every buyer by establishing a profile and receiving a Personal Financial Statement (PFS). Because we do the original legwork, you get a head start on selling your business.
Contact Sunbelt Business Brokers of Naples for a free valuation & consultation.