Small businesses across the U.S. are facing rapid inflation, supply chain problems, and slowing economic growth, exacerbating the challenges of recovering from the COVID-19 pandemic. In the first of a series of articles for CBS MoneyWatch that explore the key issues facing small business owners, Jessica Johnson Cope, CEO of the New York-based Johnson Security Bureau’s Bronx, said that the company is We explain how we overcome these challenges. This interview has been edited for length and clarity.
Johnson Sheriff’s Department
How has inflation affected your business?
Jessica Johnson-Corp: Inflation makes us get more for less. We are in the armored car business, so fuel costs are higher.Our largest armored vehicle contract is with the federal government and we expect these fees to be five years at a time, so we weren’t expecting a significant increase this year. where our costs are rising But we are not making more money.
Another area where we see inflation is in uniforms. Our uniforms His provider sources materials from overseas, which makes shipping more expensive and takes longer.
Since many of our contracts are long-term contracts, there is no opportunity to incorporate these increased costs into our rates unless we win new business. Moreover, clients say they have to pay more for this or that. But their income has not increased That’s all, so that’s all you can pass.
Will recession concerns make it difficult to plan ahead?
Making financial forecasts is already difficult enough.in the current financial environmentit’s even harder to predict what will happen from my point of view.
Last week we were securing a construction project, and the client said that one of the reasons they wanted security was to monitor equipment, so they needed to reduce coverage. But due to delays in his chain of supplies, they didn’t even have the necessary equipment.
Luckily, I got a call from a healthcare client who needed additional coverage. trying to control monkeypox, so we sent our people to them. Net net, it washed up, but it’s not what I expected.
I have to be optimistic. Because if I’m not, my team isn’t and people don’t show up.
The security services business appears to be relatively recession-proof.
yes and no. Depending on who the client is, their reaction will be different. Businesses securing event venues, restaurants and entertainment have been hit. But if you’re doing more infrastructure and healthcare jobs, you’ll be fine. In some cases, those providing school security have seen increased demand in response to what happened at Uvalde and the perceived growing threat to people in the school environment. doing.
Unfortunately, between growing concerns about the safety of children, teachers and administrators in school settings, people using public transport and their safety, and people in public places, the demand for our services is higher than ever.
There is also uncertainty about what will happen in the midterm elections and possible social unrest. And because crime is soaring in metropolitan areas like New York City, we’re getting more calls than we’ve had in the last three years. Our business prospects are very good, Especially if you don’t discriminate against the type of contract you’re hiring.
Was it difficult to find workers? And how do you compete with big companies?
We are definitely competing for talent on bigger terms and it is a challenge. It is important to listen to team members and respond to what they say.
Give people who show up appropriate rewards, such as extra days off, gift cards to Dunkin’ Donuts, or giving them shifts they want. There are other incentives we can use.
Are you a small business owner? CBS MoneyWatch wants to hear about your biggest challenges in the current economic environment and how you’re adapting. Email moneywatch@cbsinteractive.com.
