The modern world is uncertain for small business owner, and this has caused many people to worry about what the future will hold. However, there are still options available for business owners just like you. So, if you’re worried about what the current uncertainty will mean for your business, let us give you some reassurance about how to keep going to make a success of your business!
What Small Business Owners Are Worried About
If you’re a small business owner, you’ve likely had a very tiring year. Indeed, 2020 and 2021 have been incredibly distressing years for business owners, which is the case for numerous reasons. For small business owners especially, the past year has represented a significant emotional and financial challenge. Without having the backup of extensive savings, small businesses can really struggle in such difficult conditions, and so it’s no wonder that many small business owners are so worried.
But what factors are leaving small business owners so worried, and is there anything you can do to get a reprieve from these challenges? Without further ado, let’s jump in.
#1 Will My Business Be Able to Stay Alive?
This is one of the biggest concerns that many small business owners have at the minute, and it’s completely understandable. The pandemic has had an unimaginable impact on the current markets, with many people being made redundant or otherwise losing substantial amounts of income. As a result of this, spending in all but the essential businesses has fallen tremendously.
In turn, this means that small businesses providing a niche service have lost many of their customers. Moreover, even those small businesses providing essential services – such as small local shops – have found that many of their customers have tightened their belts, which has had a massive impact on business cash flow.
So, it’s not a surprise that many small business owners have been worrying about whether they’ll be able to survive. With such reduced cash flow and reduced consumer spending, many small businesses have found themselves drawing on their savings to stay alive and weather the pandemic until the economy begins to recover.
#2 Will I Be Able to Stay in Business?
This is similar to the first worry, but it’s a little bit different. Even if they are confident that their business can survive, many small business owners are worried about whether they can actually afford to keep themselves in business. Indeed, there’s a big difference between a business staying alive – breaking even – and being able to stay in business.
As a small business owner, for example, breaking even may not be enough for the time you put into the business to keep it trading. You need to make an income from your small business too! What’s more, even if you can make a small profit to pay yourself for your time, there’s still the worry about what will happen following the pandemic – will your business have the funds available to continue trading and invest in new products?
Will the government be there for me and my business when I need them the most. Will they be able to not only provide unwavering support but financial support such as SBA loan, PPP, and other business debt forgiveness.
These are all important considerations, and it’s fair that many small business owners are worried. Fortunately, there is hope, and we can help you find out how to stay in business both now and following the current times. Will our GDP be at a pace where businesses are able to thrive.
#3 I Can’t Make a Living From My Small Business!
This is something we mentioned briefly before – you need to make a living from your small business, but the reduced trading environment has made this a lot more difficult! Many small business owners make a living as a share of their business’ profits. So, if your business isn’t trading as it should be and not making much of a profit, you could be struggling to make ends meet in your personal life.
If this is the case for you, it is worth considering the different support schemes that might be available to you. Moreover, if possible, adapting your business to the pandemic’s trading environment may help you to scratch out a living during these difficult times until your business can return to its former trading glory!
#4 What Will Happen to my Staff?
This is something that has plagued many small business owner. For many, the challenging trading environment has meant they have no option but to lay off staff simply to keep their business from folding. This can be a significant challenge for many small business owners, who often express their guilt at having to lose staff at a time when people need a job more than ever.
However, you’re not alone in this. So, if you have to lay off staff to help your business survive, it’s important that you do so. It can be gutting to do, but you’ve got to do what you’ve got to do during these difficult times, and your staff should understand as much too.
If payroll is coming short, a personal source of working capital might be the last resort but businesses now are willing to lend based on future revenue, like a merchant cash advance.
#5 How do I Move Forward?
Moving forward can seem like an impossibility, and many small business owners are simply surviving in the here and now. However, if your business is to survive and continue trading following the pandemic, you’ll need to make preparations now! Critically, you will need savings or some form of financing for this. Finances will allow your small business to invest in stock to sell and the like for when the economy recovers. But how can you get finances when the trading market is barely hanging in there?
The easiest way to get financing for your small business, if you need it, is to approach a specialist financing team for help. Financing teams can offer the funds you need to give your business a big boost. And, once the market begins to recover, this will be essential – after all, you’ve got a year of lost income to make up for, so investment will be important.
The current trading market is a challenging one. Many small business owners are worried about the trading environment for their business. However, there is hope on the horizon with the vaccine rollout, and financing options will be available to help you rebuild your business when the economy is growing again!