5 emerging trends for small businesses in 2020

As we head into a new year, now’s the time to revisit our business plans and make improvements. Typically lower on the priority list than time-sensitive tasks like inventory or cash flow, marketing is frequently put on the back burner. The downside, of course, is marketing feeds into your bottom line, so keeping it fresh and current will actually help the business prosper. The good news is marketing doesn’t have to be onerous. These three must-haves are quick, simple, and effective. Set aside the time and make your business shine in 2020.

1. Have a Google My Business profile
   It’s super simple and free to set up a Google My Business profile and it’s one of the most effective ways to increase your visibility to prospective buyers. This is because once you have a profile, your listing can show up on maps, in search, and across other Google platforms. Additionally, your profile will give you more channels to communicate with your customers and an easy way to receive customer reviews—both crucial elements to your marketing strategy. And, Google will send you statistics every month that can help you fine-tune your efforts.
    
2. Ask for Google reviews
   Google is one of only a few places buyers check before they patronize your business. Indeed, 99% of businesses are assessed this way. By adding a "Give us a review" ask to the end of your sales process, you’re likely to solicit more reviews and leave a great impression as a business that cares, even in those customers who don’t post. Even if only a small portion of customers review the business, by asking for the review you’re establishing that you are interested in their feedback, which will go a long way towards building trust and warm feelings.
    
3. Have a (good) website
   If you don't have a website, or if your site doesn’t look good or perform well, you're losing business. It’s as simple as that. Buyers are fickle. They're impatient. And they want the information they want when they want it. Your website—even a simple one—needs to provide people with the information (or functionality) that they want, on-demand. This will keep your business in the running with your competitors.

None of these tactics are earth-shattering yet without them you’re missing valuable opportunities to get your name out there, build your credibility and do more business. If you don’t already have these three things in place, put them on your first-quarter of 2020 to-do list.

All small business owners know that maintaining a steady and sufficient cash flow is key to success. While planning for expected costs like inventory and wages is straightforward, the unexpected expenses like equipment repairs trip people up. And those of us working in a seasonal industry face a whole extra set of challenges. There’s no way around it—healthy cash flow is crucial, so today we’re sharing three strategies small businesses use to successfully manage cash flow.

1. Adjust for lean times
   Timing is everything. Perhaps the trickiest tip on this list, managing timing may also be the most effective. Every business experiences an ebb and flow. Some of these changes can be anticipated like seasonal differences, for example, or payroll. As a small business owner, it’s up to you to understand these cycles and plan against lean times. This is a skill that gets better with practice, but there are certain immediate steps you can take to help. If, for example, you have the opportunity to adjust the timing on delivery of the products or services you provide, consider working out a staggered schedule so you are receiving payment as regularly as possible.
    
2. Invoice differently 
   There are several strategies around payments and invoicing that can help you manage your cash flow. When taking on a new client, include payment terms and late fees upfront. Establish a standard payment window (net 30 is typical but in some cases, you might want to ask for net 15) and invoice immediately on project completion. When negotiating for a new project or contract, particularly if it is involved and longer-term, ask for a deposit and milestone payments so you aren’t left waiting for income until the very end.
    
3. Minimize expenses 
   Reducing expenses is the other side of handling cash flow. Fewer expenses mean less money leaving your accounts. Take the time now to analyze whether or not your business is operating as lean as it can. If you use equipment, for example, consider leasing rather than buying. Not only will this standardize the expense into smaller payments, but it’s a tax write-off. Selling unused equipment or inventory can also free up cash for your operation. Finally, if you work with vendors, consider negotiating with them. Just as you would consider a price break for a loyal and paying customer, so might your suppliers.

Like any other Canadian small business owner, you’re going to have to plan to keep a steady cash flow but if you follow these strategies you’ll be ahead of the game.

Managing money is one of the key tasks of running a small business. Changes in facilities or staff, acquiring inventory, or just the natural ebb and flow of your industry can all affect your cash flow. This is why business loans are commonplace. They play an important role in financial viability. This said, deciding to take a loan—and selecting the institution to take it from — shouldn’t be done lightly. Before you decide, here are five things you should consider.

1. What do you need the loan for?

This is a question to ask yourself, not to justify that decision to take out a loan, but to clarify the best products and terms for your needs.  Once you’ve determined the purpose of your loan you can pinpoint your best option.

2. How much do you need?

While carrying debt is not, in and of itself, a bad business practice, taking as much as you can get is risky. Your debt load can affect everything from day-to-day operations to your credit score, so after you identify what you need the loan for, put a realistic number on your project.

3. How much time do you have?

If you need funding quickly, you’re going to want to work with a lender that’s equipped to meet your timeline. Traditional bank loan applications are cumbersome to complete, and it can take a long time before you’ll have access to the funds. Private lenders simplify their application process and can get your funding, fast—sometimes as soon as 48 hours, however, the rates tend to be higher than with the big banks.

4. Do you need a lump sum or are incremental amounts better?

Your answer to this question will help you decide the type of loan that’s best for you. Traditional banks offer lines of credit where you can take out payments on an as-needed basis, but if you need your money upfront, you’ll probably want to apply for a term loan. This is a loan that granted in a lump sum with regular repayments until the balance is paid.

5. What is your existing debt load?

Before applying for a loan you’ll need to inventory your current debt load. If you’re already carrying debt, you must first calculate how much more you can afford. Taking on debt is normal—but taking on too much debt will put the company in a precarious financial situation. At iCapital, we’ve helped dozens of small business owners make this calculation. It’s surprising how many people apply for additional funding when it would be the business is an extremely precarious position. Ensure that you are on the path to success rather than bankruptcy by doing the math before submitting your financing application.

In the end, selecting the right institution to borrow from, and amount to ask for, comes down to identifying what you need, what you can get approved for, and what you can realistically pay back. With this approach, you’ll be taking on healthy, planned debt rather than putting your company at risk.