One of the most exciting things about building a successful business is that you never quite know what’s going to happen next, but this is also one of your biggest challenges. It could be anything from a sudden and unexpected opportunity, to a cyber attack, systems failure or natural disaster that hits your business hard. The good news is that there are certain things you can do to get your business in the best shape to embrace or absorb the unexpected when it comes along. Here are a few things to bear in mind to give your business resilience when you need it most…

1. Establish a Solid Business Plan

 

This is the first rule of running a robust and resilient small business: sit down, think it all through, and outline your business plan. Of course you should do this when you first start out, but it is also something that you should regularly revisit so that it stays relevant and up to date. A solid business plan helps you to guard against getting caught out or overlooking something that might suddenly come back to bite you in the form of an unwelcome bill.

 

2. Maintain a Healthy Diversity

Make sure that you have a certain diversity of income streams and suppliers so that if one of them takes a hit, it’s not crippling for your business – for example, relying heavily on just one or two clients puts your business in a precarious position, even if things are looking rosy right now. Similarly, if a major supplier suddenly goes out of business, what will it mean for you? Even if you have one or two main clients, partners or suppliers, make sure that you have a backup list and a plan to put in place if one of them suddenly lets you down.

3. Equip Your Team

 

When you find that you’re onto a good thing with a certain employee or partner, it can be easy to get complacent, but what if that highly valued individual suddenly leaves you high and dry? They might be pursuing an opportunity elsewhere, or they might be incapacitated due to illness or family emergency, and suddenly you need to find a way to keep your operations running smoothly in their absence. It’s good business sense to make sure that your team is well trained and informed across the board, so that the unexpected loss of a single team member or partner doesn’t leave a gaping hole in the immediate aftermath.

4. Save For a Rainy Day

 

This is good advice for all areas of life, but when it comes to running a small business this could be make or break: give yourself a buffer and don’t stretch yourself too thinly. Make sure that you have an emergency pool of money that will cover your key expenses, like payroll, for several months so that you’re not suddenly caught short. This gives you some breathing room to re-group and get things in order after disaster strikes.

5. Stay One Step Ahead

 

It’s easy to get taken by surprise if you’re not in tune with the wants, needs and concerns of upcoming generations, as well as technological advances and marketing trends. Actively engaging with younger generations through your social media accounts will help you to keep one step ahead, and you should always be ready to adapt your sales and marketing approaches and messaging in order to stay relevant and effective.

6. Take Advantage of the Right Financing

 

Taking out a loan can be an effective way of safeguarding and growing your business, but you need to be smart and savvy about it. Explore the many different financing options out there and choose the right loan structure, terms and repayment schedule for you and your business. It’s a good rule of thumb to always be sure that you’re borrowing money for a specific purpose, and that it’s going to directly sow into the development and growth of your business.

7. Prepare for Natural Disasters

 

Natural disasters, like storms or extreme flooding for example, are one of the biggest challenges and disruptions for small businesses because there’s nothing you can do to stop them, and you get very little (if any) warning. Natural disasters can impact your buildings, infrastructure, operations and people, with potentially devastating consequences for your business. Even though you can’t know when disaster is going to strike, there are things you can do to make sure that your business gets back up and running as quickly as possible once the dust settles.

 

Firstly, every small business should have a disaster plan in place that outlines the policies and procedures to be followed in the wake of a natural disaster, so that you don’t suddenly have to make difficult strategic decisions at a highly stressful and emotional time. This should include a communications strategy that keeps employees, suppliers, lenders, customers, clients and all stakeholders informed and up to date. You should document all damage to buildings, equipment and infrastructure, and file the relevant insurance claims as soon as possible. It’s also worth looking into low interest disaster loans and applying for an extension to your tax filing deadlines, to ease the pressure.

As a small business owner it’s essential that you look after your employees in the aftermath of a natural disaster, from their immediate medical needs to ongoing support and counselling if necessary. Community partnerships with other local businesses, government agencies and charities also come into their own in this kind of situation. When a natural disaster hits, it’s going to affect all of you, so it makes sense to pull together and support each other to rebuild and move forwards.

All of this contingency planning is not about being negative or expecting the worst, but it’s about getting prepared now so that you don’t find yourself having to make quick and sudden decisions at a stressful time. A little bit of forward planning will shore up your business so that you can ride out the storms and emerge stronger in the long run.

In today’s fast-paced business environment, it’s harder than ever for small business retailers to stay up on the latest trends and work to outpace eCommerce stores. With these constant-changing factors, it’s no surprise research shows that half of all retail businesses close in their first two years.

In this cutthroat environment, it can seem as if one mistake can cause a small business to close up shop. Luckily, we’re here to help. Everyone makes mistakes, and that’s okay. We just want to ensure that none of your mistakes affect your small business. Whether you’re experiencing problems in your business or not, here are the 10 most common retail problems and how you can solve them as an entrepreneur.

Problem #1: Neglecting Store Operations

One of the biggest mistakes many retailers make is neglecting their store operations, which in-turn causes them to neglect their customers. The worst thing about this problem is that many entrepreneurs don’t even realize they do this.

Too many retailers have their minds in the wrong place, and instead of focusing on the success and growth of their business, they worry too much about personal accomplishments with the company. They start off with a strong work ethic, but when they see small successes, their motivation lessens, and they begin to coast.

The best businesses strive for upward growth and don’t stop, even when they receive praise and admiration. So if you feel like you’re starting to coast as a business owner, it’s time to get back on track.

The Solution

To improve store operations, entrepreneurs can work to take a more hands-on approach to their management. They should be present at the storefront and work to engage customers and employees. Retailers should strive to be aware of their business in all aspects and work on progressing, even if it seems as if they’ve hit their peak. When business owners are actively involved with business operations, they can create a positive culture for their employers and consumers.

Problem #2: Declining Quality Customer Service

The sad truth of the 21^st Century is that if customers don’t have a positive experience at a storefront, they can just purchase the product they want online. This is why poor customer service is such a serious retail problem. It’s important that businesses make an effort to accommodate their customers’ needs because if customers don’t feel appreciated, they will stop visiting physical stores.

The Solution

You can improve your company’s customer service by showing customers that you respect and value them. Be aware of their wants and needs and show them that you pay attention to detail. You can offer personalized services, unique offerings, or even just a smile and conversation. A little will go a long way. Just think about how you would want to be treated as a customer and what would positively stand out to you during your shopping experience.

Problem #3: Forgetting About the Data

Numbers can sometimes be confusing or unappealing, but to a business owner, you have to be aware of what numbers your business is driving and what they mean. You can’t just sit back and hope that you’re generating a positive cash flow. You must be hands-on and know where your money is coming from and where it goes.

It’s good to be passionate about your business and start a company because you care about it, but you also need to take the next step to help it succeed by being data driven. Many entrepreneurs make decisions only based off emotion, but you also need to take trends and statistics into account.

The Solution

If you know about data but aren’t applying your knowledge, work to make your decisions more number driven. If you aren’t comfortable with numbers or finances, educate yourself by reading, taking a course, or asking someone for help.

When you gain knowledge and insight, work to make decisions based on a mix of logical and emotional reasoning. Don’t rely solely about how you feel about your business but use your passion to learn about the data you’ve collected and make strategic, smart decisions with both elements together.

Problem #4: Failing to Adapt

You’ve probably had to adapt a lot within the past few years as new technology and trends have emerged. But businesses have been adapting since the start of time, and positive change is a good thing so don’t push it away.

Being outdated can be the demise of a small business, so make sure to stay current with the latest trends. Small businesses are already a big trend, so you’re already partly there!

The Solution

To continue adapting, ask yourself and the people around you questions, and take time to think about the answers. Ask “what if” and “why” more often and be open to input. If your company is very outdated, it might be time to reevaluate your business. It can also be beneficial to see what other small businesses are doing to adapt. For example, you might want to update your company’s website or create a social media presence. Whatever you decide to do, just be ready for what’s next!

Problem #5: Underestimating Commitment to the Store

Some small business owners forget that opening a retail store comes with many consuming tasks such as a nonstop cycle of buying, marketing, displaying, and selling products. This process can sometimes be very overwhelming and demanding for some entrepreneurs. It also means that business owners endure long days or nights, nonstop ordering, and bill paying. Even though this can be tiresome, the minute you put it on the back burner, your small business can start to fail.

Of course, you can hire more employees, but it’s not always that easy.

The Solution

You need to make your storefront a priority, because if you’re not looking after it, no one will. Take the time to get organized and create a schedule for taking inventory, ordering stock, and selling products. It’s going to be a lot of work, so hire team members if you need extra hands on deck. But remember the importance of being committed to your store, and know that if you are committed, so will your employees and customers.

Problem #6: Trying to Do It Alone

With a lot of responsibilities as a small business owner, there does come a time when you need to delegate tasks and onboard more team members. Your business won’t be able to grow and develop if you spend all your time bogged down by stressful tasks and don’t leave any room in your schedule to brainstorm or reflect. The time will come when you finally need to take a step back and ask for help.

The Solution

When you’re finally ready to ask for help, hire and train a carefully selected staff who want your business to succeed just as much as you do. Delegate responsibilities to your new team and have them help with selling, organizing, marketing, inventory, accounting, or any other tasks you need. While they are working, take time to focus on bettering your business and put your effort into doing what you love.

Problem #7: Having an Undeveloped Brand

Sometimes I’ll walk into a store that clearly has an undeveloped brand. Maybe they’re selling too many items and I’m not sure why there are so many random things, or it could be too niched, and I’ll be turned off that I don’t fit the store’s targeted audience.

It’s important that small businesses find a happy medium between these two poles. Don’t have too large of an inventory and overwhelm customers, but also don’t turn customers away by being too niched.

A good rule of thumb is that each item in your store should make sense and contribute to your store’s overall vibe.

The Solution

To develop your store’s brand, you should first decide on your store’s look and feel. Think about what your store’s personality would be like: how does it talk, what does it wear, what music does it listen to? Ask yourself all those questions and more to establish your branding. Next, curate your merchandise to reflect that brand. Your products should tell a story about your company, and that story should be understood by your customers from the minute they walk in.

Problem #8: Being a Bad Employer

Being a business owner is a tremendous responsibility, but sometimes the recognition and power of owning a business can get to the head of many entrepreneurs. This can create a negative power dynamic and create tension among leaders and employees. The jobs of business owners are to help manage and train people to be better. Thus, everyone should be working collectively for the betterment of the company. If you’re experiencing problems with your team, it might be time for you to take a reality check and see if it’s time to improve your employer-employee relations.

The Solution

You’ve done amazing things in your life and have reached great successes, but sometimes it comes time for you to humble yourself and reassess your leadership strategies. Don’t be the boss. Be a leader. If you don’t invest in people, then they won’t invest in you or your company. Similarly, if you have a negative work culture, you need to change it. It is your responsibility to set a great example, listen to, and be supportive of your employees. Set an example by being kind and caring about people, but also make sure to separate your work and home lives. Get off your phone and work hard, and your employees will follow suit. Ultimately, you are responsible for your company culture, so work hard to be a good leader and your team will follow.

Problem #9: Ignoring the Market

Many business owners can sometimes turn a blind eye to the market, which can ultimately damage their company and decrease their revenue. Business owners make this mistake by selling items they want to sell rather than selling items their consumers desire. However, it is important to keep updated with new and developing trends and be aware of which items sell and which don’t.

The Solution

First off, you should take an inventory analysis. An inventory analysis is a way for you to determine which products are worth keeping and what needs to be removed from the shelf. This can help you figure out what items are most popular so you can know what items you need the most of. Sometimes it can be hard to put your feelings aside and remove an item you like, but ultimately you need to focus on the consumers’ demands because their purchases determine the revenue for your business.

Problem #10: Overlooking Business Basics

Time to go back to business 101. As a business owner, it is imperative that you know the business basics and how they apply to your company. It might be hard to believe that this is a common mistake, but trust me, it is. Many business owners try to take short cuts because they think they can, but short cuts don’t get the job done. Proper planning and strategizing are crucial for any successful business and they can’t be avoided.

The Solution

It’s okay to take time to refresh your basic business skills, but don’t forget or try to bypass the necessities. You need to know how to write a business plan, prepare for hiccups along the way, and handle your money and investments.

Many small business owners make these mistakes, and that’s okay! We want you to learn from your mistakes and continue to grow your business to be the best it can be.