Great news for small businesses. The Center for American Progress says things are looking up for startups as the sector experiences activity not seen since the Great Recession. Startups surged from 480,000 in 2022 and 2023. It’s a welcome distraction following 2019’s figures which only clocked 410,000.
Like any business, startups do go through the motions with teething problems. The tech industry has the highest startup failure rate at 63%, claims Embroker, Balancing the scales, the U.S. is also home to the largest tech market, valued at $1.8 trillion in 2022.
Nonetheless, identifying mistakes that could make you another statistic is the first step to ensuring your small business succeeds.
In this article, we’ll discuss the possible hurdles small businesses can encounter and how to overcome them.
Cutting Costs
Unfortunately, cash flow problems are part of the domain. The key is to preempt these situations and put solutions in place. Here are a few worth exploring:
Negotiate with Supplier
If you’re a master negotiator, now’s the time to put your skills to the test. Cut out the middleman and deal directly with the supplier.
Negotiating a better deal can save tons of cash on the products and services you need to run your business.
Build Your Website
Thanks to the advancements in technology, you no longer have to part with much-needed startup cash and bring a professional on board.
AI website builders are changing the landscape for small business owners because you have the power to create your business website with the help of automated AI tools.
An AI website builder creates content, images and website design to promote your brand, explains Hocoos.
Website builder tools allow you to build a website in minutes. The result is a unique, professionally done website that is easily updated. An intuitive website editor means you don’t need any coding or design skills.
Most AI website builders offer free websites and a customer support team. You have the use of an image editor and AI logo generator for an effortless website creation process.
Reevaluate Your Marketing Strategy
Your marketing strategy should be part of your brand’s DNA. Never underestimate the power of a good marketing punch.
While paid advertising could increase revenue, American Express says it could be worthwhile to research more cost-effective alternatives.
Effective tasks like creating a customer email list will allow you to implement a referral program. Email marketing campaigns promoting special discount codes can entice new customers to sign up.
Networking on professional social media platforms like LinkedIn is a good way of converting sales. Meeting with potential customers and explaining what happens behind the scenes sells products faster than showing them the actual product.
Research the Competition
This also applies to doing your research in general. Entering a heavily-saturated market can put pressure on small businesses. Knowing what you’re up against makes the journey less daunting.
Faster Capital says setting yourself apart from the competition means setting yourself up for success. Your offering should be unique, thus creating loyalty among customers.
When setting the groundwork for your business, collect as much information about your competitors, the industry and the target market. Take the opportunity to research the rules and regulations that govern your sector and how they’ll influence how your business is managed.
Leverage Technology
The confluence of B2B SaaS tools has opened a new world for startups. And yet, Forbes states that many small businesses face challenges in adopting these tools effectively.
Stumbling blocks are usually a lack of experience using eCommerce platforms or the costs involved.
The truth is that with the advancement in automation, these technologies can increase return on investment (ROI). That’s what startups should view as worthy investments.
Secure Digital Payments
According to TechCrunch, data breaches in the U.S. have already surpassed 1 billion for 2024. It’s a huge wake-up call for every business and begs the question, how secure is your digital payment gateway?
Your priority should be ensuring your clients’ payment info is safe the second they click the “checkout” button on your online store. Potential security risks should not be a concern for them. They want to know their details are safe and secure.
SmartCompany suggests your business complies with the Payment Card Industry Data Security Standard (PCI DSS). The globally accepted policies protect cardholders against misuse of their personal information.
John Wooden once said, “Failure isn’t fatal, but failure to change might be.” Herein lies a valuable lesson. Change is inevitable.
Thankfully, small business owners are in a position to embrace the ever-changing landscape. Adopt and adapt, and your business will thrive.
A Relationship Manager for Celebrities’. Sharing my knowledge about your favorite celebrities’ son, kids and family