What is your biggest fear as a small business owner?

What is your biggest fear as a small business owner

You don’t have to be a neuroscientist or clinical psychologist to know that mental stress can cause seriously negative consequences on the body and mind. For most small business owners, the source of stress can be manifold, but its symptoms often manifest through strong emotions of anxiety and worry. The shadows of these undesirable feelings can increase chances of chronic disorders such as insomnia, and other acute side-effects as indigestion and headaches. Beyond business concerns, people in general suffer from anxiety and worry because of one major reason: Uncertainty.

6 Reasons Confidence Will Be Your Key Asset in Enabling Small Business Growth

We worry about disappointing others close to us; we feel anxious about the outcome of a medical exam; we can’t stop thinking about how our investments will turn out. Why do we do so? Because we are uncertain about the outcomes of the various activities and decisions we make on a daily basis. To deal with the elusive future and reduce such negative emotions, small business owners should spend quality time in confronting all potential risks and scenarios. Research shows that putting off your uncertainties- though we are inclined to push away negative thoughts – can only make you worse off.

What is your biggest fear as a small business owner independent local small businesses

Why do so many small local businesses fail?

More than anything, managing finances in a small business can create the greatest concern and ambiguities for the owner. From preventative situations such as shortage of cash and employee turnovers to promotional decisions of business expansions, countless financial touchstones must be met to build a sustainable and successful company. Although many options are available to fund a small businesses, said small biz owners with imperfect credit histories (short, insufficient, or delinquent) are especially prone to falling into financial anxiety. An active and thorough approach is always the best method to deal with the troubles of life.

Since cash flow is usually at the top of the stress list for small business owners, here’s: 10 Incredibly Valuable Tips for Boosting Small Business Cash Flow.

Hope this helps! For more small business tips, visit our knowledge center

 

How do I manage my time as a local small business owner?

How do I manage my time as a local small business owner

For small to mid-sized company owners, “business” is all about “busy”-ness. Along with the rise of smartphones, we have been bombarded by relentless updates via various mobile apps, emails, and calls every day. Plus, something always pops up unexpectedly, adding to the already full plate of demands from customers, employees, and suppliers. As such, there’s a never-ending list of To-do’s, not to mention the effort to squeeze in time for your child’s basketball game or stage performance. Sound familiar? The fast-paced lifestyle of the 21st century has become almost a norm to those living in developed economies, even if each individual has a different amount of workload. While technological developments may have pushed the limits on productivity, we may have lost a peace of mind.

What are the main causes of small business failures?

According to recent psychology research, busyness is not necessarily an indication of having countless deadlines to meet and jobs to accomplish. In fact, it can be interpreted as a perception, a “feeling” of being busy. One study showed that people who were primed to feel busy performed significantly poorly on cognitive tests as compared with those who did not feel busy. Even given the same amount of workload, people who suppressed the perception of busyness felt less worried and were more focused to complete the given tasks. The key takeaway from these findings is that people can avoid making mistakes, improve their focus, and generally perform better when they can keep their busyness feelings at bay.

How do I manage my time as a local independent small business owner

One practical advice to reduce the feeling of busyness is the following. First is to start out by prioritizing and organizing the work that need to be done. Then, instead of creating one long (both mental and actual) list of To-Do’s, categorize the tasks into groups, similar to performing mental accounting. Lastly, when you feel that rush of anxiety from all the upcoming duties, take a deep breath, calm down, and reflect on how you overcame many other obstacles in life. Surely, you will manage your business better with less busyness occupying your mind.

Hope this help! If so, here’s another great post to check out.

 

When to Buy or Lease Commercial Space for Your Small Business

When to Buy or Lease Commercial Space for Your Small Business

Some small businesses are operated out of the business owner's personal home. Yet
others require a dedicated work space to offer products and services depending on their
industry. If you require a commercial office space, retail space, restaurant space or
industrial building, you must decide whether you plan to buy the real estate property
outright or to lease the property for your operational purposes.

When Leasing is the Best Deal

Leasing is normally ideal for young small businesses that are just starting out in
accumulating both equipment and workers. Most of your investments and cash flow
are going into the operations themselves, as you don't want to worry about the purchase,
mortgage, taxes or maintenance associated with buying a building. The landowner can
handle all the maintenance and upkeep of the property while it leaves you with more time
to focus on building your profits.

If you simple don't have the money for the down payment, leasing can be the best
decision to make. Also, if you are experiencing rapid growth with workers and
operations, it may just be easier to move your operations to a bigger facility than taking
on the added costs of renovating a purchased building. Leasing can be ideal for small
businesses that plan to move in the near future to another location where they can
better serve their customers or to be closer to their suppliers as you don't want to be
tied up in selling the property a year or two from now. Another advantage is that your
lease payments are tax deductible, and you can rent in places where commercial real
estate is high priced but leasing a space offers better cost savings.

When Buying is the Ideal Solution

Buying commercial real estate is ideal for a small business when you don't see the
operations moving anywhere or changing drastically in the foreseeable future. Not
unlike the transition from renting an apartment to being a homeowner, you have enough
working capital and a healthy cash flow where you can make the down payment,
mortgage costs, property taxes and maintenance to the property.

Even if you do plan to expand your operations, you may be able to easily do so by
renovating and remodeling the existing space. You can bring in more specialized
equipment and tailor the building's architecture to better suit your production processes.
In addition, you can hire your own reliable maintenance staff in house to take care of the
building and any problems that arise so you can lessen the amount of business downtime.

After the initial costs of purchasing a property, a small business may find additional
savings as you won't have to worry about leasing rates increasing year after year. You will just make one steady mortgage payment until paying off the loan. You can also write off the interest payments of the mortgage on your taxes along with the depreciation of the building. A major advantage to owning real estate property is that you can build equity. You can tap into this equity to make renovations or to place toward other business endeavors.

Lastly, if you purchase a building that has extra space, you can rent out the area to other
businesses. You can bring in passive income from this lease arrangement.

Every small business has different operational and financial goals. Buying a building or
leasing office space will be based on your current and future needs, how much you can
spend on a property, and the current real estate market trends. Carefully consider all your
options to decide on the best solution for your business.

Guest Post By: Ryan Tollefsen, Unity Home Group Team Leader

Ryan Tollefsen is the founder and team leader of Unity Home Group in Anchorage, Alaska. Ryan specializes in negotiating offers, marketing, managing the team, setting goals and achieving them. Ryan can be reached via email at: ryan@unityhomegroup.com or his website: Unity Home Group.