Contributed post
Whether you own a thriving business from home through digital means, whether you’re a master of the side hustle, or whether you’re thinking about quitting the day job for full blown entrepreneurship you’ll likely find that there’s a big stumbling block in your path. Can you guess what it is? It begins with “M”? No, not money! Although working capital is certainly an issue for home businesses and SMEs its a problem that’s not insurmountable if you can box clever with creditors (more on that later). The M word in question here is “me”… Which is to say… “You!”. No matter what the size or the scope or the nature of your business, you are the lynchpin on which it all hangs. You’re the one in the driving seat, the captain at the helm, and its the decisions that you make (or don’t make) that will determine whether your business launches into the stratosphere or fades into obscurity.
As dedicated and as passionate as you are, you may be unintentionally standing in the way of business growth if you’re guilty of any of the following…
Being too risk averse
It’s something of a catch 22. As the owner of an SME it’s in your nature to keep a lid on your overheads so they don’t spiral out of control and take your hard won profits with them… But at the same time you need to be able to make the capital investments that will lead your business to growth. If you’re too risk averse a great opportunity like a piece of equipment that can boost productivity or a premises that attracts more interest in your business can pass you by and lead you to stagnation. Entrepreneurs of all shapes and sizes need to learn to embrace risk in order to grow.
Borrowing the wrong way
Everyone with a business of their own knows that borrowing is an inevitability, even if they’re averse to household borrowing. It’s only through an open line of credit that you can prevent cash flow crises from affecting your ability to make the capital investments that will allow you to grow. Nonetheless, there’s a right way and a wrong way to borrow and if your business is in its early years you’ll need to take steps to ensure that your personal credit rating is stellar if you’re going to borrow in ways that won’t impede your future growth. Alternative business loans may be available if you’re unable to do this, but you may face slightly higher interest rates or be required to give more in collateral. You owe it to yourself to right the ship in terms of your credit rating by consolidating your debts.
Not being proactive enough
Running a business is a demanding and time intensive process, especially if you manage it alongside your day job. Nonetheless, you don’t have the luxury of waiting for business to come to you. Even part time entrepreneurs need to be proactive in bringing more leads to their businesses. Incentivizing your existing customers to bring their friends and family to your business is a great start and you can lure them in with freebies and promotional codes. If it’s good enough for Uber, it’s good enough for you!