Surviving COVID-19 business shocks is not the only challenge for small business firms. There are several other challenges they have for 2020. Most importantly, it’s all about balance. It’s is essential that small business firms balance industry and company data trends with expert counsel from entrepreneurs and business consultants. Also, because small business houses have to deal with limited budgets, it is essential to stay careful about the financial health. Considering the current economic downturn and its fluctuations, small businesses should lessen financial burden as much as possible.
Eric Dalius, marketing professional highlights three crucial challenges that small businesses should address and resolve effectively.
- The issue of cybersecurity
A cyberattack can occur to any company. Though it seems that a big brand might be subject to this, cyber attackers and hackers also target small business firms. Their target is to steal valuable data and make profits from that illegally. Today, about 60% of small businesses fall prey to cyberattacks and online data threats because they don’t invest in high-end firewalls and security solutions. Since 2020 is already critical because of the global pandemic, cybercriminals will leverage this situation to plan complex and sophisticated attacks. It’s essential for small businesses to install anti-phishing and other cybersecurity firewalls, and to do penetration testing to stay safe.
2. Getting new clients and business
The economy is estimated to get back to normalcy by the end of 2021. It means attracting new business scopes, and retainer clients might be challenging for all companies, especially small businesses. Even though the small business owners are hopeful about a brighter future, the market data still highlights an uncertain economic timeline. The small business index is essential and a tool that other businesses use to estimate economic progress. However, the resurgence of the novel coronavirus in specific areas around the world seems to be a discouraging factor.
Small business owners must stay optimistic. According to EJ Dalius, they should make optimum use of their capital and human resources to locate future business opportunities. That way, once the economy starts to move towards normalcy, they can go ahead with their business development plans. Some small business owners might be lucky to grab a new client during the pandemic phase as well.
3. Effective cash-flow management
Managing sufficient cash-flow is a principal challenge for small businesses. Records suggest that almost 69% of the small business owners that took part in the Intuit Quick Books study revealed the cash flow issues are an acute issue that gives them sleepless nights. Problems in the cash-flow can pull shutters down for a small business company. According to a U.S Bank study, about 82% of business failures are because of poor cash management. It is a constant occurrence, irrespective of any year we are in. A small business firm might have several assets, but without cash, there can be no business.
Small businesses also face other issues related to old data systems and payment modes. Small business owners need to leverage this time and address and resolve the challenges that come in the way of proper functioning and apt business development.