Facebook Twitter Instagram
    Facebook Twitter Instagram Pinterest
    BAUCE
    SUBSCRIBE
    • Hustle

      What Are The Advantages Of Having A Mobile Business?

      September 25, 2023

      Buckhead Art & Co. Owner Karimah McFarlane Is Creating Community Through Art

      September 20, 2023

      Empowering Your Career Journey: A Guide for Working Women

      September 18, 2023

      6 Red Flags To Look For On Tricky Job Listings

      September 18, 2023

      The Dos and Don’ts of Corporate Retreats

      September 13, 2023
    • Believe

      How To Take Care of Your Mental Health as a Busy Career Person

      September 18, 2023

      How To Practice Mindfulness Successfully at Home

      August 28, 2023

      What To Do When Your Career Has Become Your Whole Identity?

      August 1, 2023

      Former Love and Hip Hop Star Alexis Skyy On How To Transform Your Image And Start A New Business

      April 28, 2023

      Can Journaling Really Change Your Life For the Better?

      March 23, 2023
    • Earn

      Crypto Safety 101: Top Security Tips for Crypto Holders

      September 20, 2023

      The Role of Diversification in Retirement Planning

      September 18, 2023

      Medicare Supplement Plan N – A Great Option For 2024

      September 18, 2023

      Earning from Forex: Strategies to maximize revenue as a partner

      September 11, 2023

      The Role of Cryptography in Bitcoin: Securing the Future of Finance

      August 31, 2023
    • Live

      Night Shifts – Disrupting More Than Sleep?

      September 21, 2023

      Automatic Art Creation Tools Make It Simple to Create Any Image

      September 25, 2023

      Student Housing Trends in 2023

      September 13, 2023

      Supercilium magic products for eyebrow care

      September 13, 2023

      The Signs You’re A Workaholic And Why You Need To Stop

      September 12, 2023
    • Profiles

      Karie Brittano Shares How To Successfully Run A Hotel Business As A Black Woman

      September 11, 2023

      CEO of Girlbuild Monica Miraglilo Shares Why More Black Women Are Needed in Construction

      September 4, 2023

      This Dynamic Duo Is Inspiring The Next Generation of Boss Women Creatives

      July 28, 2023

      Built in Baltimore: How Tonee Lawson and TheBe.Org Enact Change Through STEM Education

      August 1, 2023

      How Founder of Blaq Luxury Hair Cherice Williams Built A Multi-Million Dollar Company

      June 21, 2023
    • About
      • Advertise
      • Jobs
      • Contact
    BAUCE
    Hustle

    Pain in the Supply Chain: How Resource Shortages are Impacting Black Entrepreneurs

    By Samantha HolmesDecember 15, 20214 Mins Read
    Black businesswoman working in cafe
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Maybe you first noticed supply chain issues in 2020. Clothing, cars, furniture, building materials, technology, food, and other products that are typically sold in abundance suddenly felt scarcer. As society grappled with this new reality in the early days of the pandemic, economic vocabulary evolved accordingly. Phrases such as “back order”, “low inventory”, and “discontinued” became more frequent in commerce-related conversations. Consumers are frustrated and producers are scrambling. As is the case with many social issues, these problems create a disproportionate impact on Black people. According to the Harvard Business Review, 53% of Black-owned businesses reported revenue falling by over 50% since the beginning of the pandemic. Black business owners have had to be tenacious, nimble, and scrappy during this time. The supply chain issues are intimidating, but there are ways to reduce the impact.

    Tap into Economies of Scale

    Small businesses may feel inclined to be a bit restrictive when it comes to purchasing products. There is a valid fear of products collecting dust if purchasing does not align with sales. However, purchasing materials in smaller quantities may not be the most economical option as bigger orders often result in costs per unit. This can ultimately help margins. Ariel Young, the founder of Copper and Brass Paper Goods, has discovered the advantages of placing larger orders for materials. After Ms. Young observed the severity of the supply chain problems, she adjusted the volume of her purchases. For best-selling products, Ms. Young placed orders that were five to ten times larger than typical requests. Similar decisions can ultimately help the bottom line for founders. But this needs to be a methodical pursuit. Purchasing volumes should not necessarily remain heightened. It is key to remain dynamic and ensure that the size of the order aligns with the broader environment.

    Plan Ahead

    The supply chain issues have largely thrown timelines into disarray. During the past eighteen months, companies have displayed disclaimers about extended shipping times. In October 2021, economists at the Royal Bank of Canada reported that a staggering 77% of ports around the world have had unusually long delays with the ships that have been coming and going. As a result, there is much ambiguity around delivery times. Business owners need to think ahead to be successful. Placing orders earlier and communicating with clients have both become requisite parts of being an entrepreneur during the past couple of years.

    Embrace the Power of Plan B

    The pandemic represented an era of prolonged uncertainty. Society has had to reimagine how we engage, work, and communicate with each other. Working as an entrepreneur during COVID has required even more openness to new ideas Asata Evans, CEO and Founder of AxV Beauty, certainly had to be agile when leading her business during the pandemic. Ms. Evans had to push back her company’s launch date and adjust seasonal product offerings as supplies were limited at different points throughout the year. Other founders can benefit from this same flexibility.

    Use Your Size to Your Advantage

    Small businesses can occasionally feel lost and afloat in a sea of major players. Some large companies may opt to work with chain stores who place high-volume and consistent orders. However, there are positive aspects of running a leaner operation. Adriane Stewart, the CEO of Lotus Scoop Ice Cream, has witnessed the benefits of remaining small. Ms. Stewart has been scrappy and is not overly reliant on specific suppliers. As a manufacturer, her business model fundamentally allows more agency in the creation of their products. The manufacturing component and connections with other people in the business have resulted in favorable outcomes for Lotus Scoop. Other business owners can take a page from the Lotus teams’ playbook and focus on relationships with local businesses who are willing to accept higher prices amidst inflation and market uncertainty.

    Seek Advice from your Network

    The current macroeconomic environment is difficult; however, its severity is not completely unprecedented. Learning from peers, mentors, and proteges is a worthwhile use of time. There are a variety of groups that facilitate networking between Black entrepreneurs. IFundWomen of Color, Meta Elevate, and Amazon’s Black Business Accelerator all offer resources for Black business owners.

    The supply chain problems serve as a harsh reminder that there are many factors that entrepreneurs cannot control. At the same time, this has been a period for reflection and resilience. Navigating the COVID pandemic has been a challenge, but the lessons learned could benefit businesses in the long run.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Reddit WhatsApp
    mm
    Samantha Holmes

    proud resident of Brooklyn, Samantha has been a writer ever since she could hold a crayon. Her dedication to storytelling has continued throughout her life. Most recently, she has written for publications such as Lady Science, Wogrammer, and YR Media. In her free time, Samantha enjoys modern art museums, Marvel movies, and musicals.


    Related Posts

    What Are The Advantages Of Having A Mobile Business?

    September 25, 2023

    Buckhead Art & Co. Owner Karimah McFarlane Is Creating Community Through Art

    September 20, 2023

    Empowering Your Career Journey: A Guide for Working Women

    September 18, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Your Go-To Resources

    14 Black Web Designers You Should Hire To Build Your Website

    How To Truly Break The Cycle of Debt

    It’s Time To Stop Sleeping On Your Credit Score, Sis – Here’s Why

    These Are 15 of the Highest Paying Careers To Pursue

    15 Good Jobs That Women Can Do From Anywhere Without Experience

    Facebook Twitter Instagram Pinterest
    • Advertise
    • Privacy Policy
    • Contact
    • Jobs
    © 2023 BAUCE MEDIA LLC

    Type above and press Enter to search. Press Esc to cancel.