Sunday, 30th June 2019 | Small business financing Canada,Business loans for bad credit,Management
The three challenges keeping Canadian small business owners up at night
We conducted a market research study open to small business owners and operators across the country. Now, the results are in. Read on to discover which three issues are most concerning Canadian small business owners, and how you might handle them.
If you’re a small business owner in Canada, chances are you’ve got a lot on your mind. We were curious to better understand the challenges you face—so we decided to ask. With the help of Canadian B2B marketing experts Hop Skip Marketing and Asking Canadians, we conducted a market research study open to small business owners and operators across the country. Now, the results are in. Read on to discover which three issues are most concerning Canadian small business owners, and how you might handle them.
About the market research study
This study was targeted to Canadian small business owners or operators. We received 160 responses from across various industries, and from every province except Quebec. The majority of respondents were from Ontario (50%) British Columbia (22%), and Alberta (12%).
Challenge #1: How do we sustain or grow the business during long periods of low sales?
Every industry has its ups and downs and no business is immune. Periods of low sales, especially if they’re protracted, can be extremely stressful. Even worse, your bottom line isn’t the only thing affected: self-doubt easily takes hold during dry spells.
41% of our respondents reported long periods of low sales as the largest challenge for their small businesses
You can’t eliminate the ebb and flow of sales but there are steps you can take to minimize them—and having a solid sales and marketing strategy is key. Unfortunately, many Canadian small businesses have neither a dedicated sales (74%) nor marketing (87%) employee. This is a mistake. Even if you can’t justify full-time help in these departments, it pays to employ experts to create an effective digital presence, to generate interest in your products or services, and to strategize about how to lead your prospects down the sales funnel. Your investment will pay off with faster growth and shorter periods of slow sales.
Challenge #2: What is the best course of action to handle cash flow challenges?
Cash flow refers to the money coming in and going out of your business, and for small business owners it’s crucial to stay in the black. For everyday bills to upgrades to unexpected expenses, small business owners need access to their money.
1 in 3 respondents ranked managing cash flow as a top challenge for their business
Handling cash flow isn’t complicated but it can be time-consuming. In general, cash flow tasks fall into four categories:
- Monitoring your cash flow
You can’t manage your cash flow if you have no idea what your financial picture is. Use accounting software and set aside time regularly to check in on your accounts. - Generating income
Think about all the ways you can bring money in. These include: invoicing regularly; incentivizing early payments or using a mobile app to get paid faster; asking for a deposit on larger jobs; and, selling off unused equipment or assets. - Cutting costs
Every business has expenses but you can reduce your stress and increase your cash flow by making sure you’re only paying for what you need. Try outsourcing to avoid full-time employee costs, leasing equipment instead of buying and cutting down on overhead wherever possible. - Planning ahead
Understand that there will be times when cash flow slows down and plan for it. Apply for a term loan, a merchant cash advance or a business line of credit.
Challenge #3: How to keep up with the changes in technology and innovation
Small business owners have so much to manage that new technologies and innovations tend to rest on the back-burner.
Slightly more than half of respondents have a concern about new tech and innovation
In the whirlwind of running a small business, it’s easy to let innovations pass you by. Unfortunately, that can only end one way: with you and your business behind the curve. Advances in technology can affect everything from your customer service to your daily operations, not to mention that dated systems tend to break down. If you’re going to remain competitive you’ll have to ensure you stay up-to-date with technology and innovation, especially in your sector. These days, this can be as easy as joining relevant online groups or subscribing to newsletters, or you can get even more hands-on and attend industry events. Whatever you decide on, make sure you stay engaged.
Canadian small business owners and operators have a lot to handle, with sales, cash flow, and emerging tech and innovation topping the list. The good news in all these cases is that strategies exist. Whether you choose to take these challenges on yourself or hire help, there are ways to make sure you and your business remain top-of-mind, relevant, and solvent.
Read Also
Embracing AI: Small Business Marketing Success
Venturing into Artificial Intelligence (AI) may seem like treading uncharted waters, but it's an opportunity for small businesses to revolutionize marketing strategies and spark growth. Much like the buzz surrounding ChatGPT, AI tools offer myriad capabilities, ranging from task automation to personalized customer experiences. In fact, research shows that 39% of small businesses have already invested in AI tools to innovate their customer engagement and retention strategies, leveraging AI to save both time and money.
Unlocking the Power of AI Tools
AI tools span a wide spectrum of applications to streamline processes, analyze data, and optimize marketing campaigns. Let's explore some key AI tools commonly embraced in small business marketing:
Data analysis
AI-powered analytics programs sift through vast volumes of marketing data, distilling valuable insights and trends that inform strategic decisions and fuel campaign optimization. This enhances efficiency and facilitates cost savings, with 25% of businesses using these savings to increase wages and benefits.
Natural Language Processing (NLP)
NLP technology empowers chatbots and virtual assistants to engage customers in natural conversations, enriching customer service and sales interactions.
Automated decision-making
AI algorithms offer actionable recommendations, guiding marketing strategy decisions to ensure resource allocation aligns with business objectives and budget constraints.
Content generation
AI-driven tools churn out written content, such as blog posts and social media captions, at scale, freeing up time for creative endeavours while maintaining quality and consistency.
Real-time personalization
Leveraging customer data, AI enables personalized marketing experiences by delivering tailored recommendations and offers, thereby enhancing engagement and driving conversions.
Leveraging AI for Marketing Success
Incorporating AI tools into the marketing toolkit can yield substantial benefits for small businesses. Here's a roadmap to harnessing AI for marketing success:
Harness data insights
Utilize AI analytics platforms to extract actionable insights from marketing data, empowering informed decision-making and continuous optimization.
Elevate customer engagement
Deploy AI-powered chatbots and virtual assistants to provide personalized customer experiences, fostering satisfaction and loyalty.
Make informed choices
Rely on AI-driven recommendations to shape marketing strategy, ensuring alignment with business objectives and market dynamics.
Streamline content creation
Utilize AI content generation tools to produce high-quality written content efficiently, maintaining relevance and resonance with the audience.
Deliver tailored experiences
Leverage AI to deliver real-time personalized marketing messages and offers, nurturing deeper connections and driving conversions.
Designing an AI Marketing Strategy
Designing an effective AI marketing strategy requires careful planning and strategic execution. Here's how to do it:
Identify Business Requirements
Assess business needs and objectives to determine how AI can support marketing goals.
Decide AI Framework
Choose AI tools and technologies that align with business requirements and budget constraints.
The Right Approach
Adopt a strategic approach to implementing AI in the marketing strategy, focusing on areas where it can deliver the most significant impact.
Evolve
Continuously monitor and refine the AI marketing strategy to adapt to changing market dynamics and emerging trends.
By embracing the power of AI, small businesses can unlock new avenues for growth and competitiveness in the ever-evolving digital landscape. With careful planning and strategic implementation, AI can be a game-changer for small business marketing, driving engagement, loyalty, and business success. So, let's embark on this exciting journey together and seize the opportunities that AI has to offer.
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Cybersecurity Strategies for Small Businesses
As we embark on a new year, the ever-evolving digital landscape presents opportunities and challenges. In 2024, one of the paramount challenges demanding attention is the persistent threat of cyber attacks.
Safeguarding your business against these threats is not just advisable—it's imperative. Let's explore the crucial cybersecurity strategies every small business should adopt for a secure and prosperous journey throughout 2024.
Understanding the Landscape
The IBC’s 2023 Cyber Security Survey revealed a concerning trend among small businesses. Despite over 60% considering their size immune to cybercriminal attention, small businesses with 1,000 or fewer employees experienced a surprising 43% of yearly cyber attacks in 2023.
Crucial Cybersecurity Strategies for Small Businesses
Educate Your Team
Empowering your team with effective cyber threat identification skills is essential. Regular training sessions can equip them to recognize phishing emails, use strong passwords, and identify potential security risks. A well-informed team serves as the first line of defence against cyber adversaries.
Ensure your training addresses these common security issues:
1. Phishing attacks: Deceptive tactics to trick victims into sharing sensitive information or deploying harmful software.
2. Malware attacks: Cyber threats involving malicious software executing unauthorized actions.
3. Ransomware: Malicious software designed to deny access to files, demanding a ransom for decryption.
Employee Training and Awareness Programs
Acknowledge that your employees are not just integral to your business—they are the first line of defence against cyber threats. Regular training and awareness programs inform your team about the latest cyber threats and preventive measures. Cultivate a culture of cybersecurity awareness where every team member actively contributes to the protection of your business.
Strengthening Your Digital Shield
Crafting an impenetrable shield for your small business involves developing good cybersecurity habits through daily practices:
1. Regular Software Updates: Keep all software, including operating systems and security applications, up-to-date to patch vulnerabilities.
2. Security Audits: Conduct routine security audits to identify and rectify potential weaknesses in your systems.
3. Password Policies: Enforce strong password policies, promoting the use of complex, unique passwords.
4. Require long, varied passwords for sensitive accounts.
5. Enable two-factor authentication for added security.
Invest in Cybersecurity Technology
As cyber threats advance, upgrading defences is crucial. Invest in state-of-the-art cybersecurity tools like antivirus software, firewalls, and intrusion detection systems to serve as your digital guardians, actively monitoring and thwarting potential threats.
Proactive Preparedness
Craft a comprehensive incident response plan that includes:
1. Communication Protocols: Clearly define communication channels during a cyber incident.
2. Data Backup Strategies: Regularly back up critical data to minimize the impact of potential data loss.
3. Mitigation Steps: Establish procedures to mitigate potential damage during and after a cyberattack.
The Stakes Are High
In 2023, small businesses accounted for a significant portion of annual cyber attacks, emphasizing the need to view cybersecurity not as an expense but as an investment. Cybersecurity is not a luxury—it's a prerequisite for sustainable success. As you navigate the intricate web of business operations in 2024, remember that a secure foundation is key to achieving your goals. Despite the challenges in the digital realm, informed decisions and proactive measures can help your business emerge stronger and more resilient than ever.
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The Top 10 Small Business Trends for 2024
As small business owners, anticipating the shifts that shape success is always on your agenda. In the ever-changing business landscape of 2024, specific trends will be crucial to staying relevant and thriving. Let's recap the top 10 trends that should be on your radar for the coming year:
1. Tech Integration for Maximum Efficiency:
Small businesses are unlocking the power of technology to streamline operations. From intuitive software to smart automation tools, embracing these innovations can enhance efficiency, trim costs, and keep you at the forefront of your industry.
2. Sustainability and Climate Change:
Sustainability is not just a buzzword; it's a game-changer. Small businesses are discovering the benefits of eco-friendly practices, not only for the environment but also for their bottom line. Going green can set you apart and resonate with conscious consumers.
3. Flexible Work Models:
The 9-to-5 office setup is evolving. Small businesses are embracing flexible work arrangements—remote work, flexible hours, and hybrid models—opening doors to a global talent pool while fostering a healthier work-life balance for your team.
Related: A shortened workweek: fad or the future of work?
4. Personalized Customer Experiences:
In an era where personalization reigns supreme, small businesses are customizing customer experiences. From targeted marketing to personalized products and services, understanding and meeting individual customer needs are keys to success.
5. Continued Growth of E-commerce:
E-commerce is not slowing down. Small businesses are seizing the opportunity to reach a broader audience, implement targeted marketing, and offer convenient purchasing options. Investing in a robust online presence is no longer a choice—it's a necessity.
6. Prioritizing Mental Health and Well-being:
A healthy work environment is essential. Small businesses are putting employee well-being first, introducing initiatives like employee assistance programs, flexible schedules, and wellness benefits to create a thriving and productive workforce.
7. Digital Marketing, Content Creation, and Artificial Intelligence (AI):
Stay ahead in the digital era by creating valuable content, engaging with customers through social media, and implementing SEO strategies. Integrate AI to streamline content creation processes, adding a layer of innovation to your marketing strategy.
Related Article: 7 ways how AI empowers small businesses to achieve more in less time
8. Cybersecurity and Data Protection:
In the digital age, safeguarding your business is crucial. Invest in strong cybersecurity to protect sensitive data and maintain customer trust. Shockingly, small businesses, including those with 1,000 or fewer employees, account for 43% of annual cyber attacks in 2023. This data underscores the need for comprehensive cybersecurity strategies to fortify your defence against potential threats.
9. Innovative Payment Solutions:
How we pay is evolving, and your business should evolve with it. Consider offering various payment options, including mobile wallets and contactless payments, to cater to diverse customer preferences.
10. Agile Business Models:
Agility is the cornerstone of success in 2024. Be responsive to market changes, adapt swiftly to challenges, and capitalize on emerging opportunities. Flexibility in operations and decision-making will give your business a competitive edge.
Incorporating these trends into your business strategy isn't just smart; it's the key to staying relevant and successful. Keep these considerations in mind as you navigate the dynamic landscape of 2024.
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