Entrepreneurship is a tough game.
Even with starting out small, you face a unique set of obstacles as a business owner — but that doesn’t mean you shouldn’t try beating these challenges. So with that in mind, below are several tips on how to overcome the challenge of owning a small business.
Money management
Managing cash flow is an aspect of the business that takes getting used to. Not every entrepreneur is number-savvy and many struggle with keeping track of their finances. Research shows that the top cash flow challenges for small businesses are managing receivables, invoicing, payroll, and acquiring capital. Because finances are not something you should learn through trial and error, it’s best to outsource financial consulting or accounting services. These professionals can teach you the ropes of money management, which any business of any scale needs to survive and grow.
Protecting against cybersecurity and legal threats
Most would think that hackers only target big companies but that’s not true at all. Small businesses are just as much in danger of these risks because of their lax cybersecurity measures. Small businesses store valuable data too, such as customer data, and bank details, which is why you should implement basic cybersecurity strategies. Install anti-malware or anti-virus software, use multi-factor authentication protocols, and increase the security of your network. Outsource cybersecurity services if needed and always prioritize training your staff on new safety protocols.
Mishandling of critical data, such as your customers’ personal information, is a major legal threat. There are other ways you can get sued by customers, employees, or even other businesses. Negligence and copyright infringement are two examples. What many businesses do is set up a limited liability company (LLC) to soften the blow of any lawsuits. As an LLC, your personal and business liabilities are separate unlike with sole proprietorships. In the case of a lawsuit, you can protect your personal assets if you have to settle. That said, your business will still be held legally responsible and it might tarnish your reputation. Avoiding that road means you should put protective measures in place and observe proper business procedures.
Competing with other businesses
Let’s face it: there are a dozen other businesses offering the same product or service as you. But while competition makes the playing field a lot more difficult, it’s a sign that your business is actually on the right path.
Instead of letting your competitors beat you, what you can do is use them as examples for your own business success. Look at what others are doing right and wrong — learn and apply them to your own business. Consider the areas that can still be improved or innovated upon and never let complacency put you in last place. For example, find a different way to deliver your goods that others may not be doing yet, like through a user-friendly e-commerce platform. Think of ways you can provide a better and more personalized customer experience to increase brand loyalty.
Implementing effective marketing strategies
In many cases, what gives others the edge is their marketing. Poor visibility is one of the biggest challenges small businesses face because they might not have the budget to launch a marketing campaign. But don’t think that you can’t do anything with limited funds. Social media is, for the most part, free and can be utilized to create a strong online presence.
Start by following the basics of branding, which entails creating a logo, a website, slogans and product taglines, and choosing a color scheme to go with your brand. All of these combined should be something that represents your business, an image you want to be associated with your company. Your branding needs to be consistent across the board, which means all of your online pages should have the same feel and tone to it. It should be clear, easy to recognize, and most importantly, attractive to potential customers.