The Top Six Small Business Owner Concerns

Recently Yodle released a report on the top list of worries for small business owners. The report was titled the First Annual Small Business Sentiment Survey and run last quarter of 2013, meaning the data was taken from owners as they prepared for the new year. Yodle drew samples for 306 Small Business Owners from throughout the U.S.

Here is a breakdown of the sampling (for more in-depth detail, please visit Yodle’s official report).

Small-Business-Marketing

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

As you can see the samples were taken from a reasonably wide variety of owners. Most were the sole proprietors of the business and the largest number of respondents had only 1-5 employees. What was surprising was the age demographic for those polled, with over 70% over the age of 50.

Despite some common concerns, most small business owners polled seemed to be genuinely happy with their careers:

“More than nine in 10 of respondents (91%) are happy that they became SMB owners including over half (55%) who are “extremely happy.”  A majority of SMB owners (59%) also shared that they would likely not consider selling their business over the next few years, indicating optimism and satisfaction.” – Yodle.com

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

Based on 306 Respondents

On top of that, over 50% reported being satisfied with their work to personal life balance:

“52% of SMB owners work 40 hours or less and almost three in four (72%) take at least two weeks of vacation per year.  More than one in four (27%) SMB owners actually take four or more weeks of vacation per year.  However, almost four in 10 (39%) SMB owners work 41-60 hours per week and almost one in 10 (9%) work over 60 hours a week.  Additionally, just 11% of small business owners don’t take any vacation.”

However it wasn’t all positive and many owners reported growing concerns related to both personal and professional strain.

The Top Six Small Business Owner Concerns.

Based on 306 Respondents

Based on 306 Respondents

Each of the concerns listed above is very real and entirely valid to the small business community. Let’s look at each one independently for a moment.

1. Finding New Customers.

It makes sense that this would top the list. For any business to succeed and to grow, they need to increase their clientele. For many small businesses the question is just “how to do that?”. The obvious “boxed” answer is through marketing and advertising, but with so many options out there, how do they know which is best and how do they maximize the bang for their buck?

There are as many different options as there are businesses. Specific business types can profit from specific marketing tools. However there are a few tools in the marketing tool box that apply for every business, regardless of industry and market.

  • Websites: First are foremost. Every business needs a website. This is in-arguable. Everything is online and that is where the bulk of consumers find thins now.
  • Social Media: It creates dialogue. It generates exposure. It breeds loyalty. It builds brands. Oh and it’s free.
  • Signage / Outdoor Advertising: This can range from sandwich boards to vehicle decals, billboards to bumper stickers.
  • Radio: An often overlooked avenue, local radio is still very much a player in the advertising world.
  • Trade Shows: Great place to network, to pass on literature and to establish yourself as a professional voice within your industry.
  • Email: E-marketing can get a bad wrap (often for good reason). However establishing lines of communication with current customs or leads via email newsletters or other materials, can generate sales and customer loyalty.
  • Printed Advertising: (including brochures, sales catalogs, posters, business cards etc.). Print advertising is, and will remain a leading tool for small business marketing. It is everywhere you look. Consumers still use and rely on it for much of their info. It is a necessary component for a well-rounded marketing strategy.

2. Affording Employee Healthcare & Benefits.

More of an issue in the United States where this poll took place (and in light of the Affordable Care Act). This is still a very real concern for Canadian business owners. I have spoken with many owners who struggle to understand and properly facilitate these items. It can range from not understanding the proper deductions and methods to simply not knowing whether or not they have to offer them.

Understanding your obligations to your workers and how best to facilitate them is a necessary step to building a strong team of employees – and a strong team of employees is a necessary step towards business success.

Small Business owners can profit greatly by hiring a knowledgeable accountant with experience in these areas. Of course there are online resources as well to assist in understanding the processes. The Canadian Government provides several pages on their site relating to small business including:

That said, we do also recommend speaking with an accountant to ensure you fully understand business obligations.

3. Keeping Current Customers.

Customer loyalty is a tough one and directly relates to competition. Why should customers be loyal to your business? Why should they choose you over the guy across the road or the big box stores? What will breed loyalty?

There are a slew of different answers and some will vary based on the type of business:

  • Price point: Are you being beat on it? Can they get the same or a similar item for less somewhere near by?
  • Service: Are your providing it? Are you the best? Can you be better?
  • Engagement: Do you know your customers? Are you on a friendly basis? Do you engage them and make them feel special? Do they want to come back?
  • Loyalty Rewards: Do you offer a benefit for them staying loyal? A punch card or a discount? Extra service?

There are many ways to win your customers hearts, but you have to make the effort. Woo them. Treat them like a hot first date that you want to see again. Treat em right (more on “wooing” customers here).

4. Paying Business Bills.

Of course this is directly related to income, which is reliant on sales, which is reliant on customers, which goes back to 1. and 3.

Paying bills is on everyone’s mind but no one more so then the small business owner. Lease (or rent) payments, utility bills, telephone, internet, wages, stock, delivery…. it seems like a nearly non-stop flow of money leaving the coffers.

Knowing how to manage your expenses verses your income is crucial. It is about far more than keeping up to utilities. Small business owners need to plan and prepare at all times. Learning how to maintain and balance a budget on a ever-changing income is not easy (and does require a certain level of “sticking ones neck out”).

The small business owner must be continually considering:

  • Next Months Inventory: Do you have enough? what will be a big item next month? how many should you stock? how much can you afford?
  • Existing Inventory: What of the old items? Do you discount them? hold onto them? liquidate them? how much have you invested into them? will you sell them at a loss?
  • Necessary Expenditures VS Non-necessary: Gas bill and rent are important but do you need someone cleaning in the evening? Do you need that land line or is a cell phone good enough?
  • How Many Employees: Goes back to #2 understanding all of the expenditures related to having employees. Do you hire one? two? one and a half?
  • Planning In Advance: Last month you bought a new til but sales dropped this month and oops rent and utilities took it all. Now how will you pay for this months inventory?
  • The Unexpected: It happens. Water main breaks, laptop goes down, delivery van needs a new transmission, swarm of amazon moths eat your inventory. What then?

5. Hiring Good Employees.

Your employees can make or break your business. Consider the Pizza Hut manager who was recently caught on security tape urinating into the main sink in the kitchen. He obviously lost his job, but not before the video went viral online and did damage to the brand.

Your employees can work for you or against you. They can drive customer loyalty up… or into the ground. It is fair to say this is a real concern for small business owners. Hiring good employees is a challenge and when doing so one needs to consider:

  • Wages: Are they in line with what others are offering? are they fair? why or why not?
  • Benefits: Are you in a position to offer benefits or other bonuses to employees (discounts on products, flexible work schedule etc).
  • Getting The Word Out: How are you letting them know that you are hiring? Where are you putting the word out to? Who is seeing the job offer?
  • What Are You Looking For: And what type of people do you expect to apply?
  • What Is Your Business Rep: How is your business perceived in the community? Do people want to work for you?
  • Do You Know How To Hire: You may not immediately know what the tell tale signs are for a good or bad employee, learn how to filter them out.
  • Don’t Rush: Are you in a hurry to hire? How badly do you need someone? Is it worth hiring that guy with that insisted on wearing rubber gloves throughout the interview? Know when to say no.

We cover more on Employer / Employee relations in a post here.

6. Competition.

Surprisingly number six in the list, competition directly impacts almost every other concern listed her. The competition can steal your customers, your sales even your employees! 

But remember you are someone else’s competition and it goes both ways.

Competition will always exist… at least until such a time as you have enough money to pull a Time-Warner / Comcast deal to basically eliminate the concept of competition altogether. For now however competition is real.

Your ability to out-maneuver the competition is crucial and it hinges on a great number of things. You’ll notice that this list is very similar (ok it is identical) to the list we have for #3 “Keeping Current Customers”. At the end of the day, keeping customers and facing down the competition are mostly the same thing.

  • Price point: Are you being beat on it? Can they get the same or a similar item for less somewhere near by?
  • Service: Are your providing it? Are you the best? Can you be better?
  • Engagement: Do you know your customers? Are you on a friendly basis? Do you engage them and make them feel special? Do they want to come back?
  • Loyalty Rewards: Do you offer a benefit for them staying loyal? A punch card or a discount? Extra service?

The edge you can get, is by knowing your competition. As Sun Tzu said “know your enemy and you will win 100 battles”. Understand what they offer, how they offer it and why. Reach out to those customers with better deals – with more value for their dollar – and with better service and they will give you their business.

It’s simple really. Give customers a reason to choose you. You will find it easier to do so if you know what others are offering them.

Transition-Marketing-Services

Transition Marketing Services. Our passion is educating and equipping small business owners with the tools and strategies to succeed. We have made it our priority to know Specialized Marketing. We keep up to date on what is new, what is available and what makes the most sense for businesses of all sizes and backgrounds. We recognize that every Small Business is unique, and their Marketing needs to be as well. Visit us at our website and let us know how were doing or if you have any questions. TRANSITION MARKETING SERVICES – Small Business Marketing Specialists.

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