Four Things That Scare Small Business Owners the Most

Halloween is a holiday where many aim to frighten others. But, for small business owners, starting a company and keeping it running is a scary proposition in and of itself. But this doesn’t mean these savvy entrepreneurs have no fears and are worry-free. A successful entrepreneur takes qualities like persistence, resilience, and many other bold characteristics.

Here are four things that scare small business owners the most and some tips on what to do with them.

Raising Money

A lack of capital can prevent a small business from hiring, expanding into additional markets, and exploring new opportunities. According to the SBA, only about 25% of small businesses can get by without additional financing. The other 75% use one or more sources, half from banks and a half from different types of financing. 

To improve your chances of getting a loan, attracting an investor, or otherwise accessing capital, you need:

  • To have a business plan in writing and potentially a pitch deck, 
  • Work to improve your credit score, and 
  • Ensure your cash flow, profit, loss statements, and balance sheet are updated, accessible, and auditable.

Hiring More People

“I’m afraid to hire employees only to lay them off. The problem is I’m working more than I should be.” 

This is understandable since a good hire could save you time and money. The problem is, if you let this fear cause you to avoid hiring, more stress and burnout will surely result.

To improve the hiring of the right people, ask the right questions in your job descriptions and interviews. You need to be able to trust this new person, so you don’t end up micro-managing. 

Managing Finances

If you don’t have a lot of experience with managing business finances, it can feel like a chore, and you could be slipping into bad financial habits that could one day harm your business. 

To stay on top of your finances, pay yourself, keep good credit, monitor your books, and plan. Determine what you can handle yourself, and hire an accounting and tax professional who knows how to save your business the most money.

Being Overshadowed by Larger Brands

Large brands have the popularity and budget to overshadow smaller brands. If you fear that your lack of funding might leave you behind, there are ways to get more exposure and sales without spending money, such as:

  • SEO
  • Social media
  • Email marketing

Once you get more cash flow, you can set a budget for paid marketing activities. Till then, you can try out any of these organic methods. 

Want to increase your social media presence and grow your email list? Reach out to Red Glasses Marketing House and discover how we can help your business grow.

What is your biggest fear in your business?