Small businesses form the backbone of the economy. But that doesn’t mean it’s easy for them to stand upright at all times. There are a tremendous number of challenges that put strains on them.
Owning a small business isn’t for the faint-hearted. Surviving for the long haul calls for innovation, grit, and sheer determination. But if you have those qualities, your business can tackle obstacles as they arise.
If you’re dealing with issues impacting your ability to succeed, know that you aren’t alone. There are hundreds of examples of small enterprises that have addressed them favorably. There are also companies determined to develop and provide solutions to those problems for other businesses.
Begin by recognizing potential threats that could impact the success of your small business. Then, look for ways to overcome them. They’re out there. You just need to know where to look.
Get a Handle on Your Cash Flow
Cash flow (or a lack thereof) is, without a doubt, one of the most problematic issues that plague small businesses. For many, juggling the amount of money coming in with the seemingly endless amount going out is a tough act. Getting a handle on it is vital.
Financial experts recommend that individuals put aside 3-6 months of cash to weather unforeseen problems. The same holds true for businesses. A cash reserve can help tide your company over until invoices are paid or lines of credit approved.
Those unpaid invoices can destroy a business. Software designed for small business invoicing can make a tremendous difference in cash flow. Find one that instantly converts estimates to invoices, facilitates electronic signatures, sends automatic payment reminders, and allows customers to pay online. All you need to do is check the status of outstanding receivables to find out where you stand.
Using software to manage inventory so you aren’t over-purchasing is another smart way to keep your account balanced. In fact, balance is the key to the cash flow juggling act. Let intuitive software help you keep all those balls in the air.
Locate Promising Prospects and Convert Them
You can’t just open your doors and hope the right people find you. You need to identify the best target audience for your company and aggressively pursue it. The struggle to create brand awareness in a highly competitive market is real.
Too many small businesses think they don’t have the resources to develop comprehensive marketing strategies. However, in the digital age, the playing field has been leveled for businesses of all sizes. You may not be able to field an internal team of marketing pros. But there’s ample opportunity to partner with agencies with the experience and expertise you need to get noticed.
An important representation of your brand is your website. A small business website development partner can help you create a website that speaks to your brand. An adaptable content strategy that keeps pace with changing search engine algorithms is also a must.
Eye-catching paid ads and an active social media presence will attract prospects and engage customers. Digital PR will help you own your industry. And AI is a small business’s best friend, helping analyze marketing efforts and providing responsive customer service.
Success isn’t only gauged by the number of potential customers you entice to the top of your sales funnel. Building lasting and loyal relationships with customers creates ambassadors for your brand. Attract. Convert. Repeat, again and again.
Give Customers What They Want (and Need)
Small businesses solve big problems for their customers. That’s why yours sells whatever product or service you provide. You resolve pain points, grant wishes, and satisfy desires. That’s the theory, anyway. Make sure you’re doing precisely that.
In the current climate, though, the whims of customers can change in an instant. The problems you might have been solving for them yesterday may no longer be the ones they’re interested in solving today. It can be difficult for small businesses to keep pace with consumer demand.
Small companies often decide to let large companies invest resources in keeping a finger on the consumer pulse. But if you’re always following their lead, you’ll also always be at least one step behind. You can get out in front of them by constantly engaging with your audience.
Ask your customers if what they’re buying from you is what they want and need. Respond to questions, reviews, and ratings on social media and discuss issues with them. And as you learn more about what they’re looking for, pivot quickly. That way, they’re less likely to look for the next best thing somewhere else.
Keep the Right People Working for You
The employment landscape is a monster these days. It’s particularly difficult for small businesses to attract and retain the best employees. It’s hard to compete with the recruitment process, pay, and perks large companies can offer.
But as a smaller enterprise, you offer a remarkably different culture that will appeal to a lot of talent. If you can put forward your values and promote the feel of a family business, you’ll attract those looking for that intimacy. It bodes particularly well now when workers are seeking a healthier, happier work-life balance.
Don’t just pick up those who didn’t make the cut in a large-company recruitment effort. Instead, promote your company as a better working environment than the big ones can offer. That’s a strength, not a weakness.
Nonetheless, you need to grab the attention of potential employees. Hire the ones who share the values your company practices. Prospective hires as well as your customers will notice the difference.
Overcome
Without a doubt, the marketplace is probably the most competitive it has ever been. Small businesses can be stifled by all the behemoths out there, using vast resources to corner the market. Use your size to be more innovative, agile, and intimate. That’s what makes you different and strong.
