1. Stick it out
Feeling overwhelmed is all too common for new business owners facing competing priorities and a challenging market. Jimmy explains perseverance is key to weathering the storm and coming out on top.
“In the beginning, you're absolutely panicking, then you enter this sort of transition stage where you're chipping away at it brick by brick, and things start to feel a little more easy and tolerable,” he says.
“The mountains are still there, but you're making progress. Eventually, you get to the point where you reach a new normal. My journey in small business ownership has been a constant battle of succeeding and failing.”
2. Continually reassess your business
In a fast-evolving market, the ability to pivot and adapt to a changing environment is crucial to staying ahead of the competition – particularly for small businesses that are up against established companies with more resources and bigger budgets.
“If you're a small business owner, it can be very difficult to compete in the same landscape as larger companies that are venture-backed or have been around for a while. It’s just the reality of the world,” he says.
Jimmy’s approach to business success is building something that continually creates value.
“Sometimes markets change, and you have to reassess your product over and over again. Is it still creating an abundance of value?”
“If you look at your peers or key leaders in your industry, you’ll see that every business owner, big or small, faces this problem. Macroeconomic factors affect every industry. Constantly assessing your business will allow you to see when the service, product or location needs to change, or you need to pivot industries.”
3. Go grassroots with your marketing
Savvy marketing strategies are essential to growing awareness of your brand and bringing in new customers. But for small businesses with limited cash flow, Jimmy says it’s best to focus on growing a local following from the ground up rather than stretching your budget on global marketing channels.
“Using paid advertising on social media is not meant for those who are just starting out,” he says. “It will just eat you alive, because it's way too expensive.”
“Instead of trying to use a global platform to market your product or service, focus on personal, face-to-face sales and marketing. Find local communities and place yourself within those small hubs so you can leverage them. Look at local subscriptions and magazines. Go back to that, and you'll find a lot more success.”
4. Crunch the numbers and lean on the experts
Financial statements are one of the best ways to understand how your business is truly performing, even if the picture they paint isn’t as positive as you’d like. So, regular monitoring of your cash flow, balance sheet and other key accounting information can help you identify red flags early and adjust your approach accordingly.
“Accounting information is often the thing that makes me the most anxious because it’s an unbiased reality,” Jimmy says.
“If your cash flow is poor, your balance statements don’t look good or you’re borrowing too much, you know you’re not doing well. But accounting is absolutely vital, because it lets you understand how each fiscal and monetary decision you make flows on to the rest of your business. From there, you know how to allocate resources and where to invest.”
“Look to the people who can help you interpret this accounting information – whether it be a consultant, an advisor, a business specialist or coach. The silver lining from the harsh realities is that you can use them to improve your business.”
