Fear can be the best driving factor…
Or can completely ruin someone’s life by immobilizing them. You took a big risk by starting your own business which likely involved conquering some of those fears, so congratulations on that! Still, as you continue to grow that business, new things pop up that you’ll have to deal with that will be outside your area of expertise and comfort zone. Here are a few of those and some tips on what to do with them.
Common Business Owner Fears
Raising Money
Needing more money is one of the top problems businesses (and individuals) face on a regular basis. To really put your business on the next level requires extra leverage to be able to do it right and adjust to the changes. Finding good investors, or borrowing from a bank or alternative lender can be stressful since it puts all your hard work to the test.
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 other types of financing. To minimize fears about whether you’ll be approved for that extra cash or not, know your financial situation like the back of your hand. Your bookkeeping should be clean and organized, and if it is, try to anticipate your needs ahead of time so you can apply for money when you’re not in a desperate situation. The less you need the money, the more likely you are to get it, ironically.
Hiring More People
According to this report that surveyed 1100 small US businesses, half considered hiring new people as their biggest challenge. This is understandable since one new person could equal a quarter of the staff at a small business which is very impactful and costly if it goes badly!
To improve the chances of getting the employees you need, ask the right questions in your job descriptions and interviews. Here are some sample job descriptions and a few great interview questions.
As well, the right people are usually worth a bit more – yet another reason to take out a business loan so you can afford those good employees until they’re providing value enough to grow your business beyond what their work costs you.
Managing Finances
Yet another thing that is incredibly important, especially as you scale, and also something that is not well understood by many business owners who don’t have the time to work on what they love AND balance the books and tax strategy. Not to mention that if you do need investors or financing, they will likely want to see some financial reports, including past performance and future projections.
If you’re big enough now where you’re dealing with payroll too, it’s obviously important to not make mistakes with this, as it affects the income of your employees and your taxes. Determine what you can handle yourself, and hire an accounting and tax professional who knows how to save your business the most money.
In general, fears are best handled by gaining a better understanding of why you have the fear, and learning how to prepare better for it. Some say ignorance or lack of understanding breeds fear, so now that you know what to do, you can go out and conquer your industry!
