Small business owners know that a plethora of decisions are made every day regarding technology, finances, marketing, service providers, and overall business strategy. So where do you start? Just ask the leaders of large companies. Because they often see macro trends playing out in micro ways for small entrepreneurs. This is especially true for leaders of companies on the list of 50 Small Business Champions who work with small businesses and have programs specifically designed to support them.
We called 10 companies on our list of 50 companies and asked them what small business owners need to know now, given today's technology and industry changes. Here's what they said:
Related: 3 solutions to help reduce the daily pressures small business owners face
Increase efficiency by 10%.
According to Intuit's Chief Sales Officer:
Until a few years ago, small business owners could bet on many things being true: inflation was low, labor costs were low, and the cost of goods was low. The only real constraint, he says, was the ability of entrepreneurs to create and bring products and services to market. rich raoChief Sales Officer at Intuit.
Ah, have times changed? Today's small business owners need to focus more than ever on bringing the effects of deflation into their companies to offset any cost increases, and Rao says this goal is driven by technology and automation. will help achieve this goal.
That may sound difficult and abstract, so Rao suggests a simple benchmark: 10% efficiency improvement.
First, consider what you can accomplish with just a 10% increase in operational efficiency, he says. Then look for small changes to get you there.
“For restaurants, you used to have to order takeout over the phone, which would take five minutes,” he says. “Employees and customers spend time doing that. When you take an order online, you get that time back from that employee. Those 10% profits add up to a very material amount that can be applied in a variety of ways. resources.”
Build a wider network.
According to the Vice President of UPS
“Many small business owners feel like they need to know everything and do everything themselves,” he says. ayana green, vice president of physical and emerging channels for UPS Ignite, a program of delivery services that supports a diverse range of small and medium-sized businesses. That's especially heartening today, when technology and market demands are constantly changing.
Green's advice: Don't try to do it all. Instead, focus on your strengths and build a network that complements your skills.
This is not easy. Many small business owners don't have the connections that better-resourced business leaders have. But that's why you need to focus on building your network, a resource that scales with you.
Start by looking beyond your family and friends, she says. Look for people whose skills are opposite to yours. Trust your intuition. But measure your results with data. Take advantage of free resources like seminars and public grants through your local chamber of commerce.
and everytime Tell your story so potential partners can find you. “Know where your audience is and celebrate your successes.”
Related: 7 networking groups every small business owner should join
Get your money faster.
According to Mastercard's Head of North American Small Business
Most small businesses that go bankrupt have cash flow problems. Mastercard knows this from the data. What could be the solution? “A lot of people say you should borrow money,” he says. ginger siegel, leads Mastercard's North American small business division. “But his other tip is that you can work harder to get your money faster.”
Let's say you run a plumbing business and repair sinks in people's homes. With paper invoices, you have to complete the work, return to the office, create and send the invoice, and wait for the money to be paid. This process may take several weeks.
Technology like contactless payments, tap-on phone systems, and credit card file storage can speed up that process. The idea is to give the customer options to improve cash flow, rather than forcing her to pay in only one way.
“What really matters is the customer's choice,” Siegel says. “Small businesses need education because they don’t always have the right advice or guidance on what to do.”
Be innovative with your funding.
aAccording to Macy's Vice President
This problem is well known. Small business owners, especially women and people from diverse backgrounds, struggle to access capital.
However, the solution is often do not have Familiar: Instead of knocking on doors, start researching the growing number of programs designed to fill the gap.
Many companies, including Macy's, are launching capital alternatives designed specifically for small businesses and diverse founders. Macy's recently launched program called SPUR Pathways provides direct funding opportunities and also helps train entrepreneurs to make the most convincing case against more traditional lenders. There is. “It's about giving them a little more equity and a chance to express themselves,” he says. Michelle WangVice President of Leasing and Retail Diversity Strategy at Macy's.
Finding these programs, some of which involve thinking about funding as a component of a bigger picture, rather than just thinking about your own financial needs.
Related: How small business owners can maximize productivity despite limited budgets and resources
Let's think more about privacy.
According to one vice president, legal zoom
The work-from-home movement is great in terms of convenience, but not so great in terms of privacy.
Erica Gertsbein I've seen it first hand. At LegalZoom, where she is vice president of product marketing, research and insights, about two-thirds of her customers are now independent contractors. And since many of those people work from home, businesses are often registered at home addresses and work is done on personal devices. As a result, the risk of personal information being leaked to the world is significantly increased.
Gartsbeyn's advice: When setting up a proper legal entity, think about services beyond the basics.
“We acquired a virtual mail service a few years ago, so we can use that as our business address,” she says. “Or maybe you want to travel or work from anywhere, and you can receive all your personal mail that way. With virtual mail, you also have the option of choosing a well-known address. Perhaps your own Maybe you want to say the suite is on Park Avenue. Market Street. We have some premium addresses available.”
Prepare, prepare, prepare.
According to Accenture partners
before meeting someone Kathryn Ross, they should know a few things. For example, at Accenture, she is a partner and currently the leader of the Black Founder Development Program and the global leader of Liquid Studio, which provides rapid technology development services.
Still, many times she meets with entrepreneurs who haven't researched Accenture at all.
“In today's era of access to data, the level of due diligence needs to be considered even more,” Ross says.
That also applies to understanding your own worth, she says. “Being prepared for your pitch allows you to have a conversation that specifically targets the person on the other side of the table,” she says.
You can also be honest. These days, Ross says, entrepreneurs of all kinds are claiming to be using generative AI systems like ChatGPT, when in fact they aren't. This creates mistrust.
“You're asking us to do something for you, whether it's writing a check, signing a contract, introducing someone,” she says. “So we're doing everything we can for you. We want to make sure you know that.” you. ”
Related: 5 Tips to Grow Your Small Business (The Right Way)
Become very financially literate.
According to the president of Tory Burch Foundation
“I have to admit what I don’t know,” he says. Laurie Fabiano, Chairman of the Tory Burch Foundation. And many entrepreneurs, especially women, don't know anything about finance.
The statistics prove it, Fabiano says. Women tend to have less intergenerational wealth, higher levels of college debt, and higher wage disparities. When they pivot to entrepreneurship, they often come from careers that don't require financial literacy. As a result, they feel uncomfortable talking about money and talking about it.
That's why the Tory Burch Foundation, which focuses on supporting women entrepreneurs, continues to send this message: study as soon as possible.
“Even if you don't need the money right now, it's a good idea to have it ready before you need it,” Fabiano says. “You may receive a large order and need a bridging loan, but you will need connections and knowledge to get it.”
She encourages women to attend chamber of commerce meetings and meet with local bankers. “If you do everything you need to do, you'll be in a position to know what to do if you ever need money,” she says.
Remember the small things.
According to AirBnB's Director of Global Partnerships
If you run a small business, you have significant advantages over larger companies. That is, because they often touch people's lives in intimate moments. And in today's economy, where customers are stressed and drained, such moments can be a little tricky.
Now, think about it – what small gestures will show them that you care? Because they remember it. We see this all the time with Airbnb. Their “superhosts” (those with high ratings and meeting other criteria) are often good at adding small but meaningful gestures.
“I have a friend who is a superhost, and he just leaves a bottle of wine behind,” he says. Marisa Moret, Director of Global Partnerships at Airbnb. “Or if I'm arriving late and I know I want coffee in the morning, I'll leave some milk for you.”
Not all companies offer something as intimate as housing, but all companies know something About that customer. If you can alleviate some of their stress, you can earn their long-term loyalty.
Related: How to Become Financially Healthy to Grow Your Small Business Faster
Strengthen your cybersecurity.
According to the company's executive vice president, AT&T
AT&T's largest customers are very concerned about cybersecurity. But those small businesses are often too busy.
“The bad guys know it,” they say. jennifer van buskirk, executive vice president and head of mid-market operations at AT&T. “43 percent of cybersecurity attacks are against small businesses, and 70 percent are unprepared to deal with them.”
Entrepreneurs need to make this a top priority. Think not just about your company, but also your entire supply chain and anywhere there may be weak points, she says.
“Creating a vulnerability map is a good starting point,” she says. “Is any software at risk? Is there social media exposure? Is employee training a means of entry? How can I protect my online payments and safely manage my credit card transactions?” Is that so?”
In some cases, she added, hackers take an old-fashioned approach, such as contacting call centers and trying to get employees to reveal their passwords.
“These plans are always changing or evolving,” she says.
Invest more in your digital pivot.
According to the president of pepsico foundation
The pandemic has taught small businesses a harsh but important lesson. If you are not prepared to support yourself, you will rely on the less-than-perfect help of others.
This is especially true for digital solutions. Many local restaurants didn't have websites or delivery systems, so they had to rely on food delivery apps, which made up a large portion of their income.
CD GrinThe president of the PepsiCo Foundation says small businesses need to be more proactive about these things. “Some of these customer acquisition skills you don't think about when you're selling your grandmother's empanadas,” Glynn said.
That's why the PepsiCo Foundation is helping small businesses improve their online ordering systems and delivery capabilities. But entrepreneurs can also do it on their own by researching options, learning new technologies, and talking to their peers.
In either case, the result is the same. The more small business owners know, the better prepared they are to adapt.
Related: Why small business owners should start their own blog
