Tag: entrepreneurs

Five Trends That Could Affect Your Small Business by 2020

If you are an entrepreneur looking for a sure-fire business idea, manufacturing crystal balls would be a good one. Everyone wants to know what is going to happen in the future. Unfortunately, few people have a consistent knack for accuracy. Still, by carefully reviewing recent events, it’s possible to glean some ideas about what may be coming tomorrow, even without a crystal ball. Here are five trends on the horizon that may impact your business down the road, if you aren’t already feeling some effects today:

Harnessing Big Data for Small Business

Big Data is nothing new. It’s been a buzzword for a decade now and many large corporations have successfully used large amounts of data to gain insight into their customers’ wants, needs and buying patterns. So why is it here? Because soon small businesses will affordably have access to Big Data’s power themselves to learn about their potential markets and how to better reach and exploit them, just like their big business brethren.

However, the real challenge of Big Data once you gain access to it is to manage this tidal wave of information and interpret it in a way that is meaningful to your business rather than be inundated by it. Without a solid understanding of what the data points represent, it’s easy to be overwhelmed. One trend sure to follow is the emergence of highly-focused specialists that can help apply Big Data to small businesses and assist them in mining the numbers so they can make informed decisions. Small businesses that can do this will have a significant advantage over those that can’t.

Small Business Has Its Computing in the Cloud

Just like small business will gain greater access to Big Data, so will it make greater use of cloud computing, another technology once limited to big business. Currently, only a small percentage of small businesses, those with less than 100 employees will be able to take advantage of this revolutionary concept. But in the next two to five years, this number will grow to the point that a majority of small businesses will enjoy its advantages.

Cloud computing helps businesses of all sizes reduce the costs of IT and makes it more efficient. As more and more small businesses adopt cloud computing, they will be able to take advantage of economies of scale, giving even the smallest of firms the IT power of the largest corporations for a fraction of the price it once took to maintain a computing department. Cloud computing will also help smaller businesses better access and exploit Big Data, that will transform their companies by putting a world of information at their fingertips.

Getting More Done With Less, and From Remote Locations

With the Internet, Skype, cloud computing and Big Data, a small business can literally operate anywhere… and everywhere… at the same time. For small business employers, this means they will now be able to increasingly hire the best and brightest workers, often regardless of their physical location. And for many small business workers, such as those in the back office, they can literally perform their function from anywhere, be it from home a few miles from the office, or even from across the country.

This will help small businesses reduce the cost of maintaining a physical location. Some small businesses may learn they don’t even need a physical location. Others, such as in manufacturing, will always need a physical building to perform their duties. But for those engaged in marketing, accounting, payroll, etc., these roles can be performed at any location via telecommuting.

Technology will also allow for more flexible scheduling, an item rated high on the list of desirability by incoming Millennials and Gen Z workers who, if they have to come into an office, would prefer to have greater control over their work-life balances. Offering telecommuting and flexible schedules will make a small business more competitive and attractive in this era of low unemployment.

Finally, as it has in the past, improving technology will boost employee productivity, enabling small businesses to not need as many workers because those they already have can get more done with greater efficiency.

New Skills Needed for the New Workplace

Thanks to all the rapid technological changes taking place, workers need to constantly update their existing skills and acquire new ones to stay relevant in the job market. In an earlier article, we examined the revolution taking place in manufacturing. Where once workers simply needed a high school diploma to get a good, high-paying factory job, today a high school diploma won’t even merit a call back on an application. As a result, the nation’s high schools and colleges are radically altering their vocational education programs to help students meet the increasingly more technical requirements of 21st Century employers. Businesses themselves are getting into the act, partnering with education to help steer courses and students.

Leaner, Flatter Management Structures

Technology will not only continue to allow companies to get more done with fewer workers, it will also allow them to flatten the organizational chart. Big Data and other innovations have helped businesses make more informed decisions. These innovations have also allowed them to make faster, more far-reaching decisions. This eliminates the need for many layers of management.

One major key to business success is getting to market before your competitors. The deeper the organizational chart, the slower a business moves. With a flatter, shallower org chart consisting of less management, decisions can be made quicker, with less deliberation. This makes a business nimbler and better able to respond to change in the marketplace. A company with a flat org chart can come up with innovations, devise new products and make adjustments with greater speed.

October 11, 2018
Women Entrepreneurs Make Big Strides in the World of Small Business

In 1968, a national cigarette company launched a famous ad campaign targeting women. Every ad prominently featured the tagline, “You’ve come a long way, baby.” The tagline and campaign are intended to celebrate the growing influence and success of modern women in the political, economic and social arenas.

Fifty years later, more than ever, women play a large and vital role in our society. There have been women, astronauts, women serving in the military, they’ve been professional race car drivers and even won political offices across the country in both parties. Name any endeavour or enterprise and you won’t have to look hard to discover there is a strong female presence. Many large corporations, including General Motors and other Fortune 500 companies, have female CEOs. But what about in the small business world? Have they come a long way there?

The answer is a definite yes. Women make up 40 per cent of new entrepreneurs in America, the highest rate since 1996. There were more than 11.6 million women-owned businesses in the United States in 2017. These businesses employed nine million people and generated $1.7 trillion in sales that year. They also make up nearly 40 per cent of all businesses in the country and employ eight per cent of the total workforce. Clearly, women have become a force in the small business world.

According to one recent survey of more than 3,000 women small business owners, other than gender, there are not many differences between male and female entrepreneurs in terms of the passion they have or the industries they choose. Men and women small business owners tend to select industries in about the same numbers to save for three, this study asserts. Four times as many men tend to start software/internet/computer/electronics companies. However, nearly twice as many women start health/pharmaceutical companies or art/design firms.

Another survey of 1,200 female business owners found that women entrepreneurs are quite optimistic and foresee few barriers to their future business success. This optimism may be well-founded – one university recently held a roundtable touting that now is the time for women entrepreneurs to strike out on their own and follow their passions.

Despite the glowing stats and positive poll results, women entrepreneurs do face burdens. Studies have shown that even though women-owned small businesses make up a sizeable and growing collective chunk of the American business landscape, very few individual firms make a “high economic impact” on their own. This means they do not generate more than $500,000 or more in revenue. Fewer women-owned small businesses ever “scale up” and grow into medium-sized businesses. In general, they start small and stay small.

As with any small business, no matter who owns them, women-owned businesses face funding challenges. However, big businesses and venture capitalists have joined forces to provide valuable seed money for women to start their own firms. Other financial giants have begun offering educational programs and initiatives on how to start a small business, as well as giving mentoring and networking opportunities. Websites feature inspiring stories about women entrepreneurs who have taken a risk and found success. The world has recognized women small business owners have a lot to contribute to the economy.

In 1968, the advertising tagline told aspiring women, “You’ve come a long way.” In 2018, perhaps an updated tagline would add this for female entrepreneurs aiming to make their mark in the business world, “And keep it going, you’re doing great.”

August 21, 2018
Three Things That Can Hinder Business Growth

Selling to other businesses on credit terms?

Is this hurting your cash flow and hindering your company growth?

Achieving and maintaining an effective and flexible cash flow is essential to the success of your business – particularly if you sell on credit terms. But, all too often you can find yourself facing a long wait for payment – an unwelcome strain on your cash flow – while chasing payment, which wastes valuable time and resources that could be more profitably employed elsewhere.

Our invoice factoring services can help you fund, manage, and protect your invoices, unlocking the power of your accounts receivable and freeing up valuable time, resources, and cash.

Many companies have realized the benefits of factoring their invoices in order to establish a long-term positive cash flow solution for their business. Factoring is nothing more than selling the invoices at a discount to a third party (Charter Capital) in exchange for immediate payment. In return, companies can heal their cash flow pains almost overnight, enabling them to put more money back into their business, maintaining their operation and capital for growth.

Improving Business Growth Through Strategic Resource Management

In today’s competitive market, small business owners and entrepreneurs must navigate numerous challenges that can hinder business growth. It’s not just about managing cash flow or implementing the right business plan; it’s also about understanding every aspect of the business, from customer research to strategic planning. By focusing on efficient resource management, businesses can gain valuable insights into their target market, allowing them to make informed decisions that align with their business goals. Effective use of business resources, coupled with a keen eye on market trends and customer needs, enables small businesses to evolve their business models, ensuring sustainable growth. Strategic planning goes a long way in identifying potential competitors and clients, while also pinpointing the ideal customer profile. This approach not only maximizes profitability but also ensures that every entrepreneur is ready to take their business to the next stage of growth. Whether you’re just starting out or looking to expand, focusing on the right strategies, hiring the right people, and maintaining alignment with your company’s growth objectives are crucial steps toward building a successful business.

If you would like to know more about how our services could help your business, please contact us at1-877-960-1818

April 25, 2018
What’s in Store for Small Business in 2018?

What’s in Store for Small Business in 2018?

The just finished 2017 was a banner year for investors and publically traded companies. The Dow Jones Average opened 2017 at 19,762 and closed 12 months later at a near record of 24,719 (up a hefty 25 percent). That’s nearly double the average of five years ago, when the Dow closed 2012 at 13,104. The rally shows no signs of stopping, as the average rose even higher to 25,295 in the first week of 2018.

So clearly, investors enjoyed the past year and are looking for more strong gains in the months ahead. But what about small businesses?What are their prospects for the New Year?

The overwhelming majority of small businesses are not publically traded companies. A rising stock market may have little to no effect on them. Do they have reason for optimism as we enter 2018?

According to the Metlife/U.S. Chamber of Commerce’s Small Business Index, the answer is yes. During the most recent survey, a healthy 63.2 percent of small business owners queried say they were confident in their local economies, the overall small business climate in the United States and in the health of their companies.

The South leads in small business confidence, while the Northeast comes in last of the four regions. However, the difference between the highest and lowest confidence scores is only 2.6 percent. However, confidence and optimism are not necessarily the same thing. While 63.2 percent were confident about their companies, only 38 percent were optimistic about the future.

That lower optimism rate could be a simple by-product of operating a small business, where the odds of long-lasting success can sometimes seem daunting. Another factor that could affect optimism is something that is actually good: increased competition. One-in-five small businesses owners expect to see increased competition in the coming months. That could indicate a growing economy, with more entrepreneurs willing to risk capital to start new companies. Indeed, nearly half of those surveyed say they believe their local economies are strong. That number has increased six percent since the second quarter survey of 2017.

Other survey highlights include 57 percent responding that they expect their revenues will rise in 2018. A quarter of small business owners plan to increase their investments in the coming year, a number that may rise following the recent tax bill enacted by Congress. Finally, 27 percent anticipate hiring more workers, up three percent over the last quarterly survey.

A Bank of America poll of small business owners found that optimism runs highest among the youngest operators. Millennial entrepreneurs expressed the greatest belief their revenues would rise in 2018 (81 percent), while Baby Boomer owners seemed rather dour in comparison (40 percent). Gen X came in between with 60 percent confident in rising revenues.

In another survey, conducted by Microsoft, 37.6 percent of small business owner respondents answered they planned to introduce new products and services in 2018, indicating optimism about the future. A similar number (35.7 percent) revealed they intend to adopt a new marketing strategy within the next 12 months. Nearly 20 percent said they were considering partnering with other small businesses to expand their markets.

While most small businesses then seem quite confident and fairly optimistic regarding the new year, there still are several areas of concern. Quite a few probably sound all too familiar.

First, of course, are taxes. However, this concern may lessen as a result of the recently passed tax legislation. Obviously, it’s far too early to tell the impact that these new tax rates will have on small businesses. Some time will have to pass before it can be determined if the effects were positive or negative.

A second small business concern is technology. Cybersecurity looms large here as companies conduct more business over the internet. Surprisingly, however, a significant portion of small businesses have little or no internet presence – be it the ability to fulfill orders online or market via social media – possibly due to cybersecurity concerns.

Finally, effective cash-flow management is a growing concern for small businesses. A weak cash-flow management system puts a company at constant risk. As a result, services such as invoice factoring have developed to help companies get a better grip on incoming payments.

On the whole, 2018 looks to hold promise for small business owners. What does the future truly hold? Only time will tell.

January 9, 2018