Starting and owning a small business can be demanding. At LightArrow, we have first-hand knowledge of the challenges that entrepreneurs, founders and startups face. Today, we’re sharing some of the top 8 problems that small businesses face and tips for overcoming these challenges.
1. Grow On a Shoestring Budget
No matter what type of business you’re in, marketing is essential to grow your business. Plus, having a website and a social media presence is crucial for small business success. A website is the core of your marketing efforts and social media builds credibility, generates leads and improves your website’s rankings.
Many startups and small businesses are on a shoestring budget, but this shouldn’t stop them from effectively marketing their products and services through a website. Building a website without a web developer on staff may seem daunting to non-technical entrepreneurs, but it can be easier than you think.
To get started with a website, research content management systems such as WordPress to find one that’s appropriate for your skill level. Take advantage of resources such as Lynda.com to learn how to properly set up a website. Research effective information architecture techniques to ensure you’re delivering material in a way that’s easy to consume.
Once your website is built, add new content to it regularly through a blog or forum that’s suitable for your audience. Drive traffic to your website through Search Engine Marketing (SEM), Search Engine Optimization (SEO), and Social Media sites such as Facebook, Twitter, Instagram, Quora and LinkedIn.
Investing time and energy into social media is crucial, but many new business owners believe that it isn’t necessary for success. However, social media is vital for building brand and awareness. And in fact, according to Hubspot, 71% of people are more likely to make a purchase based on social media referrals.
2. Improve Your Working Capital
In order for a business to thrive, it needs working capital and proper money management is among one of the top qualities of successful businesses. It’s important to calculate your working capital needs by finding the difference between current assets and liabilities.
In some cases, you might find your sales are not what you expected and working capital might be an issue in order to keep your business running. Or, your business is able to use cash on hand to fund operations, but it needs more cash to invest in advertising, product development, software, inventory or other resources in order to grow. If working capital is an issue, consider using an online provider of business loans, such as Kabbage to grow your business. They offer loans ranging from $2,000 to $100,000 for small businesses.
3. Build Good Customer Relationships
80% of your company’s future revenue will come from just 20% of your existing customers. -Gartner
Never underestimate the power of your satisfied customers. Happy customers are your best salespeople. And, just like in any type of relationship, communication is the key to success. Timely follow-ups after purchases to check customer satisfaction, to offer free content for customer empowerment and to provide rewards through programs can increase customer satisfaction.
However, managing these types of follow-ups can be difficult so many small businesses use a Customer Relationship Management (CRM) system. If you’re a freelancer, real estate agent, single entrepreneur, or if you run a microbusiness, you can utilize LifeTopix to manage your follow-ups with customers. You can learn more at: Successful CRM Recipes for the Small Business Owner.
If you require an automated and cost-effective way to communicate with existing customers, you can utilize an email marketing platform suitable for small businesses, such as MailChimp, Aweber or Constant Contact.
With email marketing software, you can create personalized welcome programs for new customers and nurture programs for potential customers. If you use Ecommerce, you can automate customer retention programs by integrating your email marketing with your Ecommerce platform.
4. Use Time Management Techniques
When you become an entrepreneur or run a small business, you say goodbye to the 40-hour work week. You’re on call 24×7 and good time management is vital for success and it also prevents burnout. Goal setting, planning, prioritization, delegation and focus are time management tactics that are vital for a successful small business.
When setting goals, they should be S.M.A.R.T. For example, they should be specific, measurable, achievable, realistic and time-based. Once you’ve decided on your goals, record them and put an action plan into place.
An action plan or follow-through strategy should include projects, tasks and the necessary resources. Define the work that’s required to reach your goals. Break the work down into tasks and assign those tasks to the resources who are available.
Effective entrepreneurs and small business owners have mastered delegation. They understand that some projects and tasks don’t require their supervision. They’ve learned that they can delegate these tasks to others in order to focus on strategic goals, relationship building and priorities.
Finally, focus is very important for entrepreneurs. Customer requests, advice from investors and advisors, employee demands and changing markets are just a few of the distractions that leaders balance every day. It’s important to stay on a clearly defined path and to avoid running off of course. Take advice from lean startups and get laser-focused your priorities and eliminate what’s not essential.
5. Hire the Right People
Hiring the right people for your small business or startup can be challenging. It takes a unique personality and set of skills to thrive in a lean, small business environment.
Consider that the people you hire will be working close together so they need to fit your company culture like a glove. They need to be willing to push up their sleeves and do the work themselves. It’s best to hire people who know how to do the job, not just how to manage the right people. Generally, they should have a wide variety of skills, rather than to be focused on a specific, niche area.
Startup and small business hires need to know what to do and when to do it without being asked. Hire senior employees and team them up with junior personnel.
Most recruiting firms are cost prohibitive for small businesses. Stay lean by taking advantage of your own informal and formal networks, LinkedIn and local job boards to find employees. Attract new employees by offering incentives that larger companies cannot, such as flexible work schedules, work from home days and stock options.
6. Improve Your Online Reputation
Online ratings can make or break a business. How often do you check Yelp before you visit a restaurant, salon, yoga studio or other business? Do you check the rating of an app or other product before you download or purchase it? Consumers regularly use online reviews to check the quality of a business or product before purchasing it.
The best way to avoid negative ratings and reviews is to have open communication with customers and solve their problems before they write negative comments. You should always provide a way for them to easily get in touch with you and subsequently deliver exemplary customer service.
No matter how wonderful your product or service might be, there will always be someone who won’t like it. It’s just the nature of doing business. When a negative review surfaces, it’s important to do everything possible to win that customer over.
Monitoring and responding to reviews is essential to keep ratings up. For example, I left a 4 star review on Yelp for an establishment that provides food and mentioned that the quality of the food had decreased. The manager contacted me directly and asked me specifically about the issue, provided coupons for free food and his note was friendly and kind. After this, I raised my review to 5 stars.
Check review sites such as Yelp, Angie’s List, Google Reviews, and Yahoo Local reviews regularly. Respond to every review for sites that allow it, including both negative and positive reviews. In addition, you can set up Google Alerts to notify you of any online activity about your business.
7. Compete with Larger Companies
Many small businesses are competing against the big guys, who have enormous marketing budgets, connections with top public relations firms and can hire the best talent. Nonetheless, you can still succeed if you maintain focus. Focus on a specialty that the bigger companies are spread too thin to cover. Devote your time and resources to that niche and grow when the timing is right.
As a small company, focus on your pricing models. It’s possible that you can provide better products and services at a lower price than the larger companies if your company is running lean.
Above all, big companies tend to lose touch with their customers. Be a customer-centric company. Go above and beyond to ensure your customers are satisfied. Like I said before, your customers are your best salespeople; therefore, this strategy will pay off.
8. Optimize the Supply Chain
Recently, I discovered the small clothing company, American Giant who became an overnight success when Slate ran the article, “This Is the Greatest Hoodie Ever Made.”
What’s exciting about American Giant is they have redefined the supply chain by selling their products directly from the warehouse to the consumer, thus, investing in the quality of their clothing and passing the savings to their customers. Essentially, they’re shadowing the same model that software manufacturers have followed for years, which is direct-to-customer. They’ve removed unnecessary steps in the supply chain, which eliminates overhead costs associated with most clothing manufacturers.
The lesson learned? Don’t be afraid of creatively solving problems related to your supply chain. For small businesses to thrive, it’s vital to deliver quality products or services to your customers in a timely way. By identifying, reducing or eliminating non-value added activities in the supply chain; you can optimize profits and gain a competitive advantage.
What are the biggest challenges facing your small company? How have you overcome these problems? Please share your story or ideas in the comments below.
What if I told you that the things you think are true about productivity are actually detrimental to getting things done? Let me guess. You’re doing all the right things that you believe will help you get the stuff done that you really want to do, but it’s not happening. You’re frustrated, burned out and simply tired.
If you’ve been following the rules outlined below, consider shifting your perceptions and adjusting your work habits. These different ideas might enhance your productivity in ways you never thought were possible.
1. Myth – It Pays to Work Hard – Keep Your Head Down
Do you believe that working harder, better and faster is the Holy Grail for getting things done? Do you think that if you could just focus better, keep your head down and “push through” then you’ll magically produce more and more each day? If you believe that you’ll be an instant success when you eliminate breaks, get to work earlier and stay later, you’re fooling yourself.
Are you the person who realizes that after a long day at work you sat at your desk or in meetings all day and never took a bathroom break? Admit it, we’ve all done it. If this is you, keep reading. Working harder and “pushing through” is a vicious cycle that leads to burnout. It takes a toll on you emotionally, psychologically and physically. Recently, a tweet caught my eye that compared prolonged sitting to cigarette smoking, stating, “Sitting is the new cigarette.” This is a powerful statement that led me to research how prolonged sitting affects the body and mind.
An article from the Mayo Clinic indicates that adults in a study that spent more than four hours a day sitting while watching a screen, had a 50 percent increased risk of death from multiple causes and a 125 percent increased risk of cardiovascular disease. If this doesn’t convince you to get up and moving, then my message isn’t compelling enough. Keep reading.
Earlier I wrote a post about Ultradian Rhythms and the science of why taking breaks enhances productivity. Taking breaks is truly a little known and surprising method for boosting problem solving, creativity and productivity. Set a timer for 90 – 120 minutes. Then, take a 20-minute break after that time period ends. Experiment with this method and observe if you’re achieving the productivity benefits you’re hoping for.
2. Myth – Procrastination is Bad
I’m certain that during your life, you’ve come to the conclusion that procrastination is a trait that’s considered undesirable – an unwelcome guest that sneaks up and steals your productivity right out from under you. Change your perception about procrastination. Make it your friend, but not your BFF.
The key to making procrastination work for you is to first recognize it for what it is. Is there a task that needs to be done, but you’re dreading it so it’s been put on the back burner? Is there a daunting project looming that you don’t have the time or energy to complete? Consider how important and urgent this task or project really is. Rank it in importance of all the other projects and tasks that are present in your work and life. How will avoiding this task or project affect you?
Align your goals, tasks and priorities. If the task you’re putting off isn’t going to move the needle toward your most important goals, then put it aside – go ahead and procrastinate and stop feeling guilty. It’s not worth your energy. If you simply don’t have time given the other priorities in your work or life, set this task aside, outsource it or delegate it. As long as your making progress on what YOU believe are the most important or urgent tasks, then you’ve mastered the art of procrastination.
3. Myth – All Multi-tasking is Harmful
In the recent past, multi-tasking was considered a trait of highly effective people. It was a characteristic to brag about to friends and coworkers. Recently, productivity experts and researchers have flagged multi-tasking as a habit that reduces productivity and impairs intellectual ability. I agree, rapid multi-tasking is detrimental to productivity. If you’re shifting back and forth from many tasks or getting frequently interrupted, you lose focus and ultimately efficiency suffers.
On the other hand, I never believe in extremes. A limited amount of multi-tasking can make you more efficient, depending on the type of tasks you’re executing. For example, imagine you’re a teacher and you also have children who play baseball or soccer. While you’re waiting at their practice, spend time grading papers and you’ll have more quality 1-on-1 time with your kids when you return home. Discover which tasks don’t require a lot of thought and those are the tasks that can be done in the background. Think of your brain like a computer. If you have too many processes going, it will eventually impair the performance and sometimes it shuts down. You know your limits; use common sense when it comes to multi-tasking.
4. Myth – Paper Lists Work Better Than Digital Lists
I’ve heard time and time again that many of you are unconvinced that a digital to-do list has its productivity advantages over old-fashioned sticky notes or a moleskin day planner.
With an old-fashioned paper to-do list you’re required to erase items when you re-prioritize or make errors, which is arduous. With a digital list, re-prioritization is usually as quick and easy as a tap and drag action. It’s nearly impossible to share a paper list with someone who’s not at the same location when you’re delegating or sharing tasks. It’s challenging to save and reuse a paper list; these lists inevitably get thrown away or lost. Completed tasks or to-dos that are written on paper or whiteboards cannot be searched for history purposes. Your smartphone is compact, always with you — and ready while on the go. Save your time and some trees; a digital productivity app can boost efficiency and productivity with several benefits over paper methods.
5. Myth – You Must Get Up Early to be Productive
Most of us have heard the old idiom, “the early bird gets the worm” – meaning those who rise early reap the benefits. Do you believe if you rose earlier you would accomplish much more? This is another myth that needs busting.
Everyone is different. Some of us do our best work in the morning, while others flourish at night. In fact, researchers at Germany’s Aachen University determined that early birds and night owls may have structural differences of their brains.
Don’t focus on switching your natural rhythms. Learn your natural tendencies by listening to what your body is telling you. Log the times that you get the most done and feel you have the best focus. If getting up early depletes your energy and your schedule allows the flexibility of starting your day later, then go with the flow. Take advantage of when your energy is at its best and schedule your most difficult tasks during those times.
6. Myth – Caffeine Makes You Productive
It’s a proven fact that caffeine increases your alertness and may help you focus. However, becoming reliant on a caffeine boost to increase your productivity might be a crutch worth kicking.
Ultimately, caffeine can affect your wellness in ways that can be detrimental to productivity. Caffeine is a central nervous system stimulant. In fact, it increases catecholamines, which trigger changes in our bodies that allow us to prepare for flight or fight responses. Catecholamines increase our heart rate, blood pressure and blood glucose levels.
Have you ever consumed too much caffeine to keep you awake so you can study for a final or finish a big project and it left you with a sleepless night? The result – you’re too tired to perform at your best. Or have you ever stopped drinking caffeine for a few days and felt the pain of a headache resulting from withdrawal? Caffeine withdrawal can include other symptoms as well, such as lack of concentration, depression and muscle pain. These withdrawal symptoms can result in days of lost productivity.
A great strategy for caffeine use is to limit it to the times you really need it, instead of making it a habit. And consider your caffeine source. Green tea is a great source because it also contains EGCG, which researchers believe can improve cognitive function. If you’re thinking about kicking your caffeine to the curb, there are many brain foods you can try to boost concentration. Blueberries, avocados, fatty fishes such as salmon, flax seeds, nuts and foods rich in B12 are good choices to boost energy and/or concentration.
7. Myth – Social Media is Killing Your Productivity
Social Media can destroy your productivity. However, it depends on how you use it. Do you check social media several times a day? Do you spend endless hours looking at your friends’ photos on Instagram or Facebook? Do you read every article that pops up on Twitter? If this sounds familiar, you might rethink how you’re consuming social media information. Scheduling a few minutes each day on your calendar to check social media during breaks can actually be a great way to recharge. You just need to use an ounce of self discipline.
Social media is valuable for finding information that you’re researching. It’s also valuable for keeping up with friends and business associates in one central location. For example, consider LinkedIn. Before LinkedIn, you might have spent endless hours collecting business cards and putting information into a Rolodex. Now, all your business contacts are found in one central location – just a few clicks away, which is an amazing productivity booster.
Social media is incredible for locating and collecting information when researching any subject. There are several apps and applications that help you locate and curate this information. For example, our app Pro.Inbox is a great app for this use.
With Pro.Inbox, you can create information feeds from Twitter and Facebook and customize these feeds with keywords for any subject for which you’re interested. For example, imagine you’re focused on finding information about Clutter, CRM, Goals, GTD and other subjects. You can simply create feeds for all of these subjects and find all relevant information quickly and efficiently. Furthermore, you can convert the tweets or posts you discover to notes or calendar items to ensure that you have a record of an article or other information for your research. Converting posts and tweets to calendar items is an excellent time-saving method. When you’re ready to follow up, you’ll easily be able to find the saved information. And, in fact, if you schedule these items on your calendar, you certainly won’t forget about them.
8. Myth – Socializing at the Office is a Waste of Time
Have you ever got the stink eye from your boss when you were discussing important things at the office such as the latest episode of “Game of Thrones?” Many managers believe that socializing and laughing at the office is a huge time waster. In some cases, your boss is right; socializing can be a time suck.
But, with a little common sense, socializing can also build friendships, which can lead to better team relationships. When you have good relationships with co-workers, they’ll enjoy working with you. And perhaps, help you out when you need it. We spend 40 or more hours a week at our jobs. A happy worker is a productive worker. Go ahead, find some friends and laugh a little. Just properly manage your priorities and don’t overdo it.
What common productivity myths would you like to bust? Please share in the comments below.
Over the years, probably brought on by being a startup junkie and always having poured myself unreservedly into work my entire professional life, I’ve developed several bad habits or things that are harmful to health, and perhaps also to relationships.
On the one hand, there is this insatiable passion and seemingly endless energy to take on challenges, get stuff done, being an engine that is always on. Sadly, on the other hand, there is fatigue, irritability, loss of focus, and low quality sleep. Undeniably, according to both ancient wisdom and modern medical know-how, the latter set of things affect one’s health dangerously. And with equal importance, the closest relationships are exposed to occasional bouts of irritability and other forms of negative energy. Broadly speaking, there is a general feeling of stress and anxiety as a result.
Three things I have either changed or started recently are personally helping me a lot without taking away from my productivity, and seem to be helping cut out the bad set of things.
1. Turn off all audible alerts and lock-screen notifications on devices. (Except calendar reminders and text messages.)
This was a surprisingly welcome change. Sounds simple, but do you really need to be suddenly interrupted from your flow or zone, with a ding and a lock screen message that “Your Facebook friend so-and-so just joined Pinterest.” – and other irrelevant, unnecessary crap? I started going into my iPhone’s Notifications setup each time anything came up (Mail app alerts, Google alerts, Facebook, Twitter, CNBC alerts, and perhaps 10 others), and turning them off. I left Calendar and text message alerts on as I control the reminders I put on my calendar items, and also I am not a defocussed incessant texter – especially when I work, so most texts I get are important. On the same note, during work hours, I only make myself visible to the group of people I am working with on messaging apps. I still check my email and look at my agenda frequently, but on my own schedule, when I am in-between focussed tasks – kind of like waking up in sync with natural sleep cycles. Which leads me to my second thing – sleep.
2. Sleep well. Instead of an alarm clock, use an app like Sleep Cycle.
I started using this about a couple of months ago instead of using a regular alarm. It is ingeniously simple. You turn it on, put it next to your pillow facing down. It tracks your sleep cycles, duration and quality by tracking motion (whatever it detects from your tossing and turning, etc.), and perhaps from movement noise since it asks for access to the microphone. You can configure a window of time to wake up in, and it detects a stage when you are either awake or your sleep is in the waking part of the cycle during that time window, and wakes you up. Also, it measures your sleep quality and gives you a score and a graph of sleep level over time – that way you can correlate various pre-sleep activities with quality of sleep – for example, does sipping some tart cherry juice an hour before going to bed actually help with sleep, does deep breathing right before sleep give you some golden deep sleep cycles, etc. As my friend Chip had said 20 years ago: you should measure things that you care about. Inducing positive energy and a calm disengagement via pre-sleep deep breathing, and cutting out sources of negative energy seem to help in my case – which takes me to the third point.
3. Add positive energy (many choices). Cut out negative energy (namely TV news channels, and social media complainers).
Points 1 and 2 take zero time investment and give heavy positive returns. So that’s golden for the ROI (return-on-investment) fanatics. Point three is also a net positive – consuming about 30-60 minutes of time every day for adding positive energy (meditation / deep-breathing / quiet-time / simple yoga / reading / praying / reflecting / being grateful – look up Positive Psychology when you have a minute), but freeing up much more than that by subtracting sources of negative energy that steal time both directly and indirectly, and negatively affect every aspect of life. I am talking primarily about TV “news” folk, political talking-heads and other assorted villains – kings and queens of ignorance on TV and the internet constantly furthering their narrow agendas by stepping on your gentle minds. They come from the right and the left – ignore them, and instead look straight at what you value – there’s much better stuff there. The negative energy sources are plentiful in our social circles, in person, and more so on social media since it’s a much larger set. Cut. Them. Out. Hide them from your feeds, unfollow them, walk-away, change the topic, do whatever it takes to cleanly disengage. There are always tons of important things that require immense energy, constructive debate, championing ideas, defending values, and much effort without all the shallow and shrill things stealing our precious time. Any issue that is important to you can be engaged with constructively without subscribing to a buffet-line of fast-food class negative sentiments. That frees up more time to embrace positive things. Things you admire. Things you learn from. Things that leave you positive. Spend time with people that enrich you, and take a vacation every now and then!
What are some of your favorite positive energy sources? What kinds of negative energy sources have you successfully cut out? Please share.
In today’s world we’re overloaded with information from multiple places. It’s delivered to us every day through social streams, email messages, and the web. Wouldn’t it be great if you could easily harvest, filter, and view this information from these multiple channels, and then find the data nuggets and ideas that are important to you? This is exactly why we created Pro.Inbox. Pro.Inbox boosts your productivity by gathering the information that you care about from social, email, and the web and presenting it to you all in one app. In fact, it’s the first mobile app to make email, web and social streams actionable from one place.
Watch the video below to see how Pro.Inbox can boost your productivity — starting today!
Watch Pro.Inbox in Action
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