Jeremiah Ajayi
For many people, owning a small business offers freedom, autonomy, and creativity. The truth is that some small firms consistently prosper, irrespective of the situation or outlook. The secret is to set up mechanisms that will enable your firm to succeed as well. A constant in small business life has been underlined by the year 2020 and the Great Resignation that followed: the necessity to be flexible and adjust to market conditions in order to succeed.
Because of this, it’s more vital than ever to analyze the most typical problems facing small businesses and, more importantly, to develop solutions. A well-prepared, structured business leader who is aware of prospective difficulties is much more likely to handle them successfully than someone who is not. These are the typical problems that our 2022 Small Business Trends report found and solutions to them-
1.How to Get Funding
Lack of money or cash flow was the third-biggest issue for small firms in 2022 Small Business Trends, ranging up to (31%). As a small business owner, having few resources is more often than not. A company’s lifeblood is its capital and cash flow, which give it operating funds as well as space to grow and develop. The survival of a firm is immediately threatened by their absence.
When contemplating how to access capital and meet their cash flow requirements, many business owners examine loans and other funding options. But in every business environment, getting a loan can be challenging. The percentage of loans accepted by the Small Business Administration-slightly easier to obtain-is still low and depends on your location, the industry you intend to enter, and your prior business experience.
Fortunately, there are numerous funding options available in the current environment. Accessing already available resources is frequently possible. For instance, Rollovers as Business Startups, or ROBS, often known as 401(k) business funding, enables you to access 401(k) and other retirement money. A home’s existing equity can be accessed through home equity lines of credit, or HELOCs.
Are you having trouble obtaining the finance and cash flow you require due to company challenges? Again, there are several options available here. First, keep in mind that it’s crucial to evaluate your own sector and industry. Many industries continue to grow even when the economy is weak. For instance, it’s likely that the delivery of necessities like food, healthcare, and goods will be strong. Plan ways to increase and capture business if you operate in these sectors. Plan your business venture around industries that are resilient to economic downturns. But if your analysis shows that your company will suffer, it’s time to think beyond the box. Can your company be redesigned and retooled to handle the COVID-19 pandemic’s issues of uncertainty?
- Time Management
Entrepreneurs are constantly stressed for time. It’s understandable why it ranks as the fifth-largest difficulty with a 21% share. Operating a firm necessitates a variety of skills and activities in each department. In a small business, you might start the day as the CEO, charting the long-term course for the ship’s strategy. You’re a product developer examining sales data for the most recent product offering in the middle of the day. You make client contact in the late afternoon before overseeing payroll and benefits in the evening. You must continuously balance short-term objectives, like making payroll, with long-term ones, like achieving your strategy. Time is one of the most valuable corporate commodities, which should come as no surprise given the interruption-prone nature of business life, which includes phone calls, e-mails, and conferences, to name just three.
Active time management solutions are important. First, know your primary goals for the business. Your goals should be SMART:
Specific
Measurable
Attractive
Realistic
Time-based
Second, prioritize tasks by linking them to your goals. A to-do list is a useful method of prioritization. Jot down everything you need to do. (It’s very important to have these in written form, by the way. Don’t just keep lists in your head.) Then assign them priority by their importance to company goals and by the time in which you need to do them.
Third, use your to-do lists to examine your time management after a few weeks.
Exist any particular duties that keep getting put off? If so, think about appropriate answers. You might need to hire new staff or assign some duties to existing employees. In other areas, like taxation or creative work like marketing or advertising, you might want to engage contractors. Consider automating the tasks that aren’t getting done, such payroll or onboarding new personnel, if they can be done. Even future business growth and the creation of fresh business concepts and insights can benefit from this.
- Advertising and marketing
Potential clients must be aware of your business for it to succeed. In 2022 Small Business Trends, marketing and promotion are the third most frequently mentioned business difficulty accumulating up to (19%).
There are many solutions in this category. Simply define the marketing and advertising areas for which you need to develop a strategy.
Is your problem getting in touch with customers? More people are at home and online as a result of the coronavirus. If your target market is people who work from home, go after them online! You can next narrow your focus even more by considering whether your target market actually benefits from social networking. Perhaps they frequent message boards or sites like Reddit. If so, creating a web presence and using online marketing to your advantage is a must. For those who might spend more time at home and have more time to respond to direct mail, try direct mail using innovative techniques. If your challenge maintaining sales at times when your customers are scrimping and saving? Inform people of promotions and loyalty programs via text message.
- Providing and Managing Benefits
Every firm must include benefits. However, administering and providing benefits may also be difficult and time-consuming, which is why 13% of small business owners rank it as their top challenge. This sum has considerably increased year over year. By not giving management and benefits enough attention, businesspeople run a number of hazards. First of all, if you don’t manage any benefits in accordance with the law, you risk breaking both federal and state regulations. Second, in recent years, small company insurance plan deductibles have drastically climbed. If business owners are not careful, they could get into big difficulty.
Benefits are important factors in luring and keeping employees. Your benefits must at the very least be industry-competitive. Insurance (health, dental, vision, and life), paid time off (vacation and holidays), sick leave, and retirement benefits are examples of common perks. Flexible scheduling, more alternatives for work-life balance, and health-related bonuses, including gym memberships, are all frequently utilized as recruiting tools, particularly for younger workers.
Benefits administration and distribution don’t have a simple, quick fix. Small business owners who wish to read up on the fundamentals of benefits can do so here. To be honest, it’s probably best to have at least a general understanding of the benefits environment, to be aware of the requirements, and to know the best ways to attract and keep employees.
Naturally, the answer is based on the type of issue you are facing. However, hiring a virtual assistant is one all-purpose solution that many business owners find useful (VA). Most VAs work as contractors. They are capable of performing clerical and administrative duties like scheduling meetings, making presentations, and filing.
- Administration
The fourth-biggest issue for small businesses is administrative work, no wonder it accumulates (23.25%) of the challenges. This covers payroll, bookkeeping, and other related tasks.
Problems may result from inadequate performance of these tasks. It is vital to keep track of costs, payments, purchases, and sales, but it may be time-consuming and challenging. Unfortunately, it plays a big part in keeping the money coming in. Your business may stall if you don’t keep good books.
Payroll may even be more challenging. To ensure that they accurately withhold taxes, business owners need to stay up to date on federal, state, and local taxes. The standards for Social Security, Medicare, workers’ compensation, unemployment insurance, and other deductions must also be met.
Fortunately, there are remedies. Depending on your demands, outsourcing one or both tasks can be the easiest option. One choice is to hire staff to handle payroll or bookkeeping.
Utilizing solutions that are generally accessible is a quicker and less expensive choice. There are several bookkeeping firms available that can grow their offerings to meet your needs reasonably cheaply. They include financial statements, spending management, monthly reconciliation, accounting, and more.
Similar payroll processing, withholding services, employee payment options (such direct deposit and cutting checks), and other services are all provided by several payroll firms.
Can you believe? “Other” was cited as the biggest business problems by 16% of small business respondents! That demonstrates how varied and complicated business difficulties may be. Naturally, the answer is based on the type of issue you are facing. However, hiring a virtual assistant is one all-purpose solution that many business owners find useful (VA). Most VAs work as contractors. They can perform clerical and administrative duties like scheduling meetings, making presentations, and filing.
