I've been in the small business world my whole career, first as a pharmaceutical salesman calling doctors, then in banking, then consulting, and now as head of small business at Mastercard. But small business has been a part of my life for as long as I can remember. I grew up hearing stories of my grandfather starting a business out of the trunk of his car and growing it into a national pharmaceutical wholesaler. I later worked for that company and saw the fruits of his labor up close.
For me, it's always been about the underdogs. I respect their ambition, understand their struggles, and understand that their collective entrepreneurial spirit empowers communities and fuels economies. That's why I work so hard to give them a foot in the door, both in my role leading Mastercard's small business efforts and as a mentor to hundreds of entrepreneurs over the years.
In that spirit, and as we celebrate the resilience and innovation of millions of American entrepreneurs during Small Business Month, here are some of the most common questions I've received over the years about starting, growing and sustaining a small business.
“I don't know what to do. There's so much to do and so few resources. Where do I start?”
One of the hardest things about running a small business is not having a dedicated Chief Marketing Officer, Chief Financial Officer, and Chief Technology Officer (or having a dedicated Chief Marketing Officer, Chief Financial Officer, and Chief Technology Officer, and it's all you). Surround yourself with organizations and people who can help you achieve these objectives and provide expertise and guidance, such as lawyers, accountants, and other small business owners. You can also seek out additional resources from other companies in your ecosystem. For example, the Mastercard Digital Doors program offers a variety of exclusive tools, resources, and education to help you enhance your business operations and become digitally enabled. Getting the right digital tools, such as customer management and digital payroll, is critical to running your business efficiently and increasing productivity.
“We are late to the digital revolution. The pandemic has taught us that if we don't have a digital presence, we will lose customers. Where do we start?”
When COVID-19 hit, one-third of U.S. small businesses didn't have a digital presence and quickly realized how that impacted their ability to reach customers. Fast forward, and many consumers now expect brick-and-mortar stores to be fully digital as well. It's important for small businesses to reach customers where they are. This includes both the physical and digital spaces. If you only focus on one space and go out there, your business will stagnate. Doing both has a multiplier effect.
There are plenty of tools to set up websites and digital marketing campaigns, as well as software to help your business run more efficiently. Going digital increases your reach and gives you the means to get things done with fewer people. Digital Doors brings it all together, offering a free digital business assessment to evaluate your digital operations and provide customized recommendations on next steps to advance your digital journey.
“How do I represent my business so I can access capital?”
One of the biggest mistakes small business owners make is confusing their business and personal financial lives. When presenting yourself to banks and potential funding organizations, it's important to present your business as a business by keeping your personal life separate, such as by having a business checking account and separate personal and small business credit cards. As a small business owner, you need to represent yourself authentically. For example, if you confuse your money, it will be difficult for banks and other organizations to get an accurate picture of your financial situation and creditworthiness. Don't make it difficult to get a loan.
“What can we do to survive inflation? We're finding it hard to compete with other companies and the various perks they offer.”
That depends on your business. If you hold inventory, then of course inventory management is important. Holding onto inventory costs you money. Don't spend more money than you need to buy things that are expensive but sitting in your backroom. Get a good grasp on your cash flow and know what's coming in and what's going out. With inflation, there is often more money going out than coming in. So it's important to think about how you can improve your front-end operations (i.e. the client-facing side of your business) as well as the back-end of your business. How can you leverage social media and marketing to promote and grow your business (hint: check out the Mastercard Marketing Hub) or how can you better manage the money you spend on the goods and services you help manufacture and sell?
“The products we currently sell are doing very well. How do we know when it's OK to expand and add other products?”
This is a tough one. If your business is doing well, there is a tendency to do more and do more. When it's going well, I think you have the power to continue on that path for a while and, once you see consistency, to expand. A lot of people, once they see a little bit of success, they want to change the world. But if you wait and accumulate enough success, Intention change the world.
“There are so many credit card offers for small business owners. What should I look for?”
Many credit cards are generic in their offers. You need to make sure the card's rewards directly benefit your business operations. Cash back can be helpful in that it gives you money you can reinvest in your business, but also look for built-in rewards that provide you with the specific tools you need for your business, discounts you use often, and education/resources that will help you as a business owner and grow your business. What rewards will make the most sense for you and your business? Check out Mastercard's small business rewards and products to find the ones that best fit your needs.
“I feel alone in this small business journey, where is the best place to get help?
There are many organizations set up to help small businesses. In your community, there may be a local chamber of commerce, a small business development center run by the Small Business Administration, or a women's business development center that serves underserved female populations. Organizations like Mastercard have specific groups focused on supporting small business owners. For example, Mastercard's Small Business Community provides a platform for small businesses to learn, grow, and connect with Mastercard and its partner network.
Finally, here's one question that small business owners don't typically ask, but should: “How important is cybersecurity?”
Don't think you're too small to be targeted by cybercriminals. Maintaining a strong cybersecurity posture is crucial. It only takes one data breach to be devastating to your business. According to a Hiscox 2023 survey of U.S. small business professionals, the median cost of a cyberattack to a business in one year is $8,300, and half of ransomware victims were unable to recover all their data and had to rebuild their systems. And even if you're able to survive a breach or ransomware attack financially, customer trust may be lost forever. Take advantage of free resources like the Mastercard Trust Center to access cybersecurity education, resources and tools to help you secure your business.
