These are some common pitfalls in running a small business that can keep entrepreneurs from succeeding this year. Here are three small business strategies to implement this year.
- Running out of money and not managing cash flow properly
- Losing customers
- Not preparing financial documents to access capital.
- Unforeseen issues that impact business – like a pandemic
Luckily, for every obstacle, there are solutions to keep your
business afloat. Let’s look at those key
areas and how they can pave the way for success for your business this coming
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1. Work on an emergency fund and financing strategies
Financing a small business in economic turmoil is challenging. While EIDL and PPP have been helpful, you are
going to need a backup plan. Undoubtedly,
2020 was a challenging year for many companies and worldwide economies remain
uncertain. While 2021 may have better
projections than 2020, be prepared for the worst.
Where do you find capital if sales are sluggish? First, you need to trim down personal and business expenses. Once you trim down make it a habit to save anywhere from 5% to 10% of your gross sales. Second, prepare your financial documents and have them in order. Sooner or later, you may need public or private financing. Indeed, government financing is not free money. Without a doubt, you need to present financial documents to the SBA or PPP lenders to qualify. Also, private lenders can come in very handy at this time. Having a capital emergency plan is one of the best small business strategies you can have.
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2. Use social media marketing
Now more than ever, more people are going online. Today, nearly 50% of the world’s population uses social media every day. That is a huge arena for marketing. While many businesses have not considered using social media, you are missing out on huge opportunities.
Social media users can often be broken down by demographic. Certain ages are more likely to be active on Facebook, others on Instagram, and so on. Furthermore, marketing cost is cheaper than hiring salespeople or traditional advertising. Fortune 500 companies use social media, you should too. While you may be thinking along traditional business methods, we are all humans. Humans love social media for some reason or another. 3
3. Be adaptable
To conclude, be adaptable. After the pandemic hit this last year many failed because they were not able to adapt. Change is inevitable in business. Above all, adaptability is not only being ready just for expected changes, like those projected by business forecasts and trendsetters.
Adaptability means you’re ready to make fast changes due to external or internal factors. In fact, you should always be planning and innovating. As uncertain as the global business scene is now, the only thing we can be sure of is that more unexpected events will occur. Of course, truly adaptable companies will be able to overcome, survive and even thrive, come what may.
To sum up, with these small business strategies your company has all it needs to see true success in 2021 and beyond.