Owning a small business is not for the faint of heart.
It's hard enough to keep your head above water at any time, and it becomes exponentially more difficult in a tough economic climate. But thankfully that bit of stark reality doesn't stop entrepreneurs of all kinds from starting up new ventures every day.
Small businesses are essential to the Canadian economy.
According to Innovation, Science and Economic Development Canada, at the end of 2022 there were almost 1.25 million employer businesses registered in Canada. Of these, almost 98% were classified as small businesses (1 to 99 paid employees), and these small businesses employed 46.8% of the total private labour force. This statistic alone proves that small business is the backbone of our economy, so the success of these businesses is important to all Canadians.
But the factors placing pressure on small businesses - economic uncertainty, upheaval in the global political arena, tariffs, rising inflation, increased competition, adoption of ever changing mobile platforms - have resulted in thinner and thinner profit margins.
Those businesses who managed to survive the COVID pandemic learned a few things. Here is a list of the top 5 tips to help your business survive in the face of enormous financial odds.
1. You need a strategic plan.
Map out your strategy for the next 3-5 years in a business plan. And while you're at it, do a marketing plan. Review and update them regularly as your business model adapts and changes (and in any case, at least once every 2 years).
Don't let the day-to-day routine of operating the business keep you from staying focused on the goals you have set out in the business plan. Formulate a mission statement for your business, print it, frame it and hang it on the wall, and read it every day. Make sure all of your employees know the mission statement by heart.
2. Streamline your operations.
Cut unnecessary expenses. Be realistic when determining what should be cut. If it takes 5 people to adequately run your operations, don't cut back to 4 employees or your productivity will suffer. Take stock of the products and services you offer. Are they all profitable? Or are some just taking up space, costing you money in the long run? Concentrate on the products and services that you excel at, and that are in demand.
3. Never stop marketing.
Don't slash your marketing budget. Advertising is essential, and even more essential in hard times. If people can't find you, they can't use your services. It's vital that you keep your business top of mind with your target customers.
You can spend your marketing dollars more wisely by buying smaller ads, negotiating better ad prices, and advertising in the spaces where your target customers are most likely to see them. Think about other ways of marketing your business, such as through social media channels. Start a blog. Write articles for blogs on other industry websites. Get your company name and brand some visibility.
4. Update your website.
If your business doesn't have a website, my first question is "How do you operate without a website?" For all practical purposes, if you're not online you don't exist. Make sure your site works well on mobile.
If your website is underperforming, hire an SEO consultant to come up with a strategy for improving your traffic and search engine rankings.
5. Above all, DON'T PANIC.
Keep Calm and Carry On. I know that's easier said than done. But if you can manage to keep your head and stay focused on your goals and objectives, you stand a much greater chance of making your business a success in the long term.
Get some advice from other professionals - talk to your banker, your accountant, your lawyer, and other business owners. They may have solutions you have not considered to help you deal with your immediate cash flow issues and steer the course.
Image generated by Google Gemini AI
