As exciting and rewarding as it can be to be a sole proprietor, operating a small business comes with its own unique set of challenges. When these show up—and they will—being the primary decision-maker can be as much of a blessing as it is a curse.
How do you manage growth? What about economic downturns, especially if your business hasn’t gathered enough momentum to power through such times?
How do you oversee money, and what is your financial strategy for reinvesting in your business? What do you do when customers come calling with complaints? Even something as simple as hiring new staff can be an arduous endeavor for a small-business owner.
As 2023 nears, it’s important to start putting in place plans and strategies to help keep your small business moving and booming. And when the opportunity for growth arrives, to be able to take advantage of it. Here are three solutions that will be of great help to your continued growth as a small business.
1. Protect Your Cash Flow
Cash flow is one of the biggest issues small-business owners face worldwide. In fact, 61% of all small businesses struggle with liquidity, and almost 32% have problems paying back loans, vendors, or their employees.
Issues related to capital set in when production and overhead costs exceed the cash you have available or coming in. To manage cash flow issues, start categorizing your spending.
Prioritize operation costs like paying your employees and re-evaluate your pricing strategy. To do this, you first need to understand your true labor and production costs.
Lastly, create a growth plan to know when and where to invest in new opportunities as you continue to focus on keeping operations running smoothly.
2. Invest In Software And Technology
Some small-business owners may be hesitant to jump on the tech bandwagon. Typically, they assume they’re perfectly capable of handling operations solo and don’t want to disrupt established processes.
While these are valid concerns, investing in software and tech will always be a boon to your operations over time. From collaboration software to time tracking and inventory management tools, you can shave off a lot of time and energy by automating various processes.
Even something as basic as investing in digital document signing services can add greater convenience and reduce time tracking down various people to sign documents.
3. Separate Your Business And Personal Expenses
Another misstep some small-business owners make is not separating business and personal expenses. Although this usually means they overspend on business rather than personal expenses, it’s not a healthy habit.
For one, it makes it hard to pay yourself since you’ve already merged both accounts. Additionally, it makes accounting a nightmare. Need a hand? Hire a professional accountant to help you out.
4.Review Your Insurance Coverage
As your business grows, it will face different risks. Make sure you’re prepared for whatever comes your way by regularly reviewing and updating your insurance policies. This will help ensure that you’re covered against any potential liabilities that could come up.
5.Keep Up With Industry Trends
The only way to know what changes and challenges are coming down the line is to stay on top of industry trends. Doing so allows you to adapt quickly and make the necessary changes in your business operations.
It also helps you identify growth opportunities early on. There are many ways to keep up with industry trends. You can read trade publications, attend relevant conferences, or become active in online forums and communities related to your field.
6.Hire The Right People
As your business grows, you’ll need to add more people to your team. When hiring, always look for individuals who share your vision and values.
Additionally, they should have the relevant skills and experience needed to help you achieve your goals. Finally, don’t forget to run background checks! This will help you avoid any legal issues down the road.
7.Promote Your Business
No matter how great your products or services are, they won’t sell themselves. You need to let people know that your business exists and that you’re ready to serve them.
There are many ways to promote your business, including online marketing, PR, and content marketing. Figure out which channels work best for you and focus your efforts there.
Taking Your Small Business to the Next Level in 2023 and Beyond
As 2023 nears, it’s important to keep in mind that proper money management will solve a lot of your small business problems—and having a growth plan will solve most of the rest.
Take time to re-evaluate your processes and optimize where necessary. Keep an eye on your spending and make sure you’re getting a good ROI. The above tips will get you started on this new phase of your business’s growth, and you can always add more as needed.