Contributed post
The digital age may be bewildering to many. It comes with its own jargon which can be incomprehensible for those not raised with one foot in the digital realm. It changes and evolves with alarming frequency and it’s becoming so ubiquitous that many younger consumers don’t even bother to take their wallets out with them anymore, knowing that they can pay for transactions with their smartphones.
Yet, while this brave new world may seem alienating for those who are behind the curve, it can also be extraordinarily liberating. In the digital era, wage slaves need no longer learn to be content with their lot and new Mums needn’t struggle to get by on their maternity pay.
The digital era has empowered untold thousands to start up their own businesses from the comfort of their own homes. Whether it’s a side hustle that’s managed alongside a regular day job, a stay at home job for new parents who are sick of the rat race and viewing the birth of their child as the perfect opportunity to go freelance, or an enterprise that is run as a full time career.
Wherever your talents and skills lie, the online world will offer you a plethora of opportunities and more advice than you can shake a mouse cursor at to help transform your dream of being your own boss into a workable reality.
Yet, while the world of small business is rife with opportunity, it’s also a shark infested water. Competition is rife, and no matter how unique your business plan may seem or how infallible your USP, there will be a handful of hungry entrepreneurs just like you who want nothing more than to take your customers away from you.
Even without factoring in the fierce competition, there are a number of potential pitfalls that can see nascent businesses go up in (rarely literal) flames. There’s a reason why 50% of startup businesses fail to make it past their first 5 years of trading. Steer clear of these commonly faced threats and you’ll have every chance of navigating this perilous (but of so satisfying) minefield that we call small business in the 21st century…
Entrepreneurial burnout
In your fervour to be the very best there is at what you do, it’s essential that you don’t throw yourself too hard into your operation at the expense of your quality of life, your health and your relationships with your friends, family and employees. Entrepreneurial burnout is a very real threat to nascent enterprises and it occurs most frequently when ambitious young business owners with everything to prove show a persistent inability to pace themselves.
They take on more work than they can handle, agree to contracts and deadlines before making absolutely sure that they can meet them and dedicate longer and longer hours to the running of their operation.
Inevitably they lose sleep, struggle with concentration and become slow in memory and quick in temper.
Ambition is completely commendable, but it should never come at the expense of your work / life balance. Take some time to relax, meditate and center yourself. If not for yourself, do it for your business and your family. Burnt out entrepreneurs are a nightmare to spend time with.
Lack of consistency in customer experience
Entrepreneurs care passionately about their brand and want to ensure that it represents a level of consistency that customers can expect in their every interaction with the business.
Look at the big brands like Starbucks or McDonalds. However you may feel about these corporate monoliths, you must understand that their success has lain with their ability to provide a level of consistency that customers can rely upon.
Unfortunately, they don’t always go about this in the best ways. They will model the expected behavior for their employees but when that level of consistency isn’t there on the shop floor, they’ll swoop in to provide it. Don’t be the kind of CEO who relentlessly micromanages their employees’ operations. Instead, invest in good quality and consistent training.
Yes, taking time out to train your employees can be disruptive, yes it can be costly and time consuming, but it’s the only sustainable and reliable way to assure the consistency that you will need to secure a string and loyal following.
Poor cash flow
All businesses rely on the flow of cash around their enterprise. Having a ready supply of liquid assets is extremely empowering for businesses. It can help them stay agile and embrace technological or operational trends.
It can allow them to make capital investments in new equipment, discounted stock or employee training. It can allow them to capitalise on opportunities at the expense of their competitors.
In order to facilitate a healthy cash flow, entrepreneurs need to walk a fine line between keeping overheads manageable and investing liberally in areas that see a quick and healthy return.
Unfortunately, this can be something of a learning curve. Inevitably, businesses struggle with cash flow problems. While these can be avoided with proper planning, they needn’t necessarily mean doom and gloom for your enterprise, so long as you’re able to handle them quickly and effectively.
One way to facilitate quick and easy cash flow is invoice factor financing. This is especially useful if you have a client who is late in payment due to unforeseen circumstances and you need to mitigate the late payment’s effect on your business. You can read financing details here to get a better understanding of invoice factoring.
Alternatively, you may wish to consider a bridging loan. These are loans which can be secured quickly and easily, although they can tend to come with high interest rates. Or, if you’re prepared to take a fleeting hit on your profit margins for the sake of easy cash flow, throwing a flash sale can be a great option that boosts interest in your business.
While the world of small business is far from smooth sailing for most, it also provides an atmosphere of challenge and rich reward where the under appreciated and frustrated are able to take their lives and their careers into their own hands.