Small business owners face many challenges in a world of constant change and evolving technology. To navigate these waters successfully, seeking guidance from those who have experienced similar hurdles and triumphs is essential. Here are insights and advice to help business owners face the many challenges in a constantly changing world.
1. Become More Efficient
According to Rich Rao, Chief Sales Officer at Intuit, small business owners must focus on increasing efficiency to offset rising costs. Start by aiming for a 10% improvement in efficiency. Small changes can lead to significant resource savings, such as shifting from phone orders to online orders in a restaurant.
According to a McKinsey report, businesses prioritizing efficiency can reduce costs by 20 to 30%. Technology solutions like Customer Relationship Management (CRM) systems can significantly improve efficiency. For example, using CRM software can lead to a 15% increase in sales productivity and a 12% reduction in marketing overhead.
2. Build a Broader Network
Ayana Green, Vice President for Physical and Emerging Channels at UPS Ignite, advises small business owners to focus on their strengths and build a diverse network of contacts. Look beyond family and friends, seek out people with complementary skills, and utilize resources like seminars and local Chamber of Commerce events.
A survey by LinkedIn found that 85% of jobs are filled through networking. Beyond personal connections, attending industry-specific events can be highly beneficial. Research shows that 84% of business owners believe attending events is crucial for their business.
3. Get Your Money Faster
Ginger Siegel, Mastercard’s North America Small Business Lead, emphasizes the importance of cash flow. Utilize technology like contactless payments to speed up payment processes and offer customers choices to improve cash flow.
Data from SCORE shows that 82% of businesses fail due to cash flow problems. Embracing digital payment options can make a significant difference.
Be Innovative with Funding
Access to capital is challenging for many small business owners, especially women and diverse founders. Look for programs designed to support small businesses, such as Macy’s S.P.U.R. Pathways, which offers funding opportunities and training to make compelling pitches to lenders.
Data from the Small Business Administration (SBA) indicates that traditional lenders approve only about 25% of small business loan applications. Alternative funding sources like crowdfunding have gained popularity. According to Zippia, crowdfunding generates $17.2 billion annually in North America and is projected to double by 2027.
5. Think More About Privacy
In the era of remote work, protecting personal information is crucial. Erica Gartsbeyn, Vice President at LegalZoom, suggests exploring virtual mail services and prestigious business addresses to enhance privacy and professionalism.
Implementing robust cybersecurity measures is crucial. A data breach costs a small business approximately $217,000 per incident, making prevention more cost-effective.
6. Prepare Thoroughly
Kathryn Ross, a partner at Accenture, emphasizes the importance of due diligence when seeking support from organizations like Accenture. Know your own worth, research the companies you approach, and be honest about your capabilities.
According to a Bain & Company report, almost 60% of executives attributed the failure of a deal to a lack of due diligence that failed to identify critical issues. To ensure compatibility and trustworthiness, small business owners should conduct thorough research before approaching potential partners or investors.
7. Become Financially Literate
Laurie Fabiano, President of the Tory Burch Foundation, highlights the need for financial literacy, particularly among women entrepreneurs. Attend networking events and meet with bankers to gain the knowledge and connections necessary for funding.
According to a study by Preferred CFO, 82% of businesses fail due to money mismanagement, which suggests that many business owners may lack a good understanding of financial management. Therefore, businesses with strong financial literacy are more likely to secure funding and achieve long-term success.
8. Remember the Little Things
Small businesses can excel by adding personal touches to customer interactions. Marisa Moret, Director of Global Partnerships at Airbnb, suggests thoughtful gestures that reduce customer stress and foster loyalty.
According to the Harvard Business Review, customers with the best past experiences spend 140% more than those with poor experiences. Small gestures like personalized thank-you notes or follow-up emails can go a long way in enhancing customer loyalty.
9. Beef Up on Cybersecurity
Cybercriminals are increasingly targeting small businesses. Jennifer Van Buskirk, AT&T’s Executive Vice President, emphasizes the importance of cybersecurity preparedness and protecting online transactions and sensitive data.
Cyberattacks are a growing threat. In 2023, cybercrime cost businesses an average of $4.45 million per breach, as reported by IBM’s Cost of a Data Breach report. Small businesses are increasingly targeted because they may have weaker cybersecurity measures in place.
10. Invest More in the Digital Pivot
The pandemic highlighted the importance of digital solutions. C.D. Glin, President of the PepsiCo Foundation, encourages small business owners to proactively embrace technology, explore online ordering systems, and adapt to changing customer needs.
Digital transformation is a necessity. A study by CloudZero reported that 90% of small businesses have adopted cloud computing, enhancing their digital capabilities. The pandemic accelerated this trend.
Conclusion
These lessons from industry leaders, business reports, and surveys provide valuable insights for small business owners navigating today’s dynamic business landscape. Entrepreneurs can thrive in an ever-changing world by embracing technology, building networks, and prioritizing financial literacy. Incorporating these data-backed insights into your business strategy can help small business owners thrive in an ever-evolving landscape, fostering growth and resilience.
How will you use this information to take advantage of the ever-evolving business landscape?
