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But sometimes, small businesses simply fail because they haven’t been properly future-proofed.
Future-proofing your small business means taking proactive steps to ensure its long-term success. It’s preparing your business to weather any changes and challenges you may face, from economic downturns to periods of low cash flow to supply chain disruptions.
Because small to mid-size businesses typically don’t have the same level of financial flexibility or resources that larger businesses do, they’re especially vulnerable to these challenges — making it even more important to future-proof your small business.
Fortunately, you can get started right now. Here are seven easy ways to future-proof your small business and increase your chances of long-term success.
You started a small business because you wanted to follow your dreams and spend your time doing what you care about — not because you know the ins and outs of running a business. And there are a lot of ins and outs.
Fortunately, we live in a world perched on the cutting-edge of technology. Tech solutions exist to help you streamline your business operations, save time, eliminate human error, improve efficiency, and reduce costs.
If there’s a manual task that needs doing, there’s a tech solution that can help you do it. The key word there is help — tech exists to make your life easier, not to replace people.
By embracing new technology and keeping an open mind to new tech solutions, you can spend more of your time doing what you do best: Building and strengthening your business. For instance, did you know ChatGPT can help with marketing or that QuickBooks works directly with PayPal to track and manage expenses?
New tech is out there, so how can you find it?
Your brand is more than just a color palette or a mission statement. Your brand is what your business projects — it tells your customers and prospects what they can expect from your company and your offerings.
It shows them why they should pick your business over the competition (and any future competition that might crop up). And it solidifies your business’s reputation within your community or industry, attracting loyal customers and employees alike for years to come.
You don’t need a huge marketing budget or a business degree to build a strong brand — but it may be worth your while to invest in something like a professional logo or a website.
Fostering personal connections with customers, building trust, and providing impeccable customer service can go a long way toward building a strong, lasting brand.
Quick tips to increase your brand presence:
As a small business owner, change is the only constant. Seasons change, market demands change, and audiences change. If your entire business is dependent on a single product or service, those changes could leave your business behind.
Diversifying your product or service offerings reduces your reliance on a single product or service, builds multiple revenue streams for your business, and allows you to lean on different parts of the business when you need to. Plus, when you expand your offerings, you expand your business’s reach into new or wider markets.
Here are a few ideas to help you diversify your offerings:
A business is only as strong as its people. A strong team — built with skilled and capable workers who are loyal to the business — is resilient, flexible, and innovative.
This team can pivot and adapt as needed to keep the business afloat during rough storms. This team fosters a strong brand presence, provides excellent customer service, and achieves business goals.
On the flip side, a team built with the wrong people — employees who aren’t dedicated to your business’ mission and culture or employees who weren’t set up for success — breeds employee turnover.
If employee turnover is an ongoing problem, the future of your business may be at risk. It’s time to take a closer look at your hiring and onboarding process, your company culture, and your employee retention strategy.
Quick tips for recruiting and retaining top talent:
Embracing sustainability isn’t just good for the planet — it’s also good for your business. Today’s consumers care about supporting businesses that support the planet. Globally, 60% of consumers say sustainability is an important criterion when considering a purchase, according to The Global Sustainability Study. 2 Another 34% say they’re willing to pay extra for sustainable products and services — up to 25% extra! 2
Small businesses are taking note. According to recent QuickBooks data, 95% of small business owners believe sustainability is important to the future of the economy. 3 Three in five say they’re already taking steps to reduce their environmental impact. 3 And business owners who haven’t yet made sustainable moves say money, time, and resources are three barriers. 3
But embracing sustainability doesn’t need to be a major lift. Going greener can be as simple as turning off the overhead lights or powering computers down at the end of the day. These actions might feel small and insignificant, but small businesses represent 90% of all businesses, according to The World Bank. 4 Together, we can make a big difference.
Easy tips for better sustainability in your small business:
Many experts say you should have three to six months' worth of living expenses in a savings account. A rainy day fund to help you weather financial storms. Well, the same goes for your business. In the event of an emergency or unexpected drop in revenue, you should have a backup cash reserve that can carry you through it.
Of course, building up that cash reserve is easier said than done. As a small business owner, you’re already operating on extremely tight margins, and you’re not alone.
But building that cash reserve is essential to future-proofing your business. If you hit a rough patch (like we all do), an emergency fund can be the difference between riding the storm out or sinking with the ship.
It’s never too late to start saving — here are a few tips to help.
How to (slowly but surely) build a cash reserve:
No matter which industry you’re in, you work with vendors and suppliers. They’re the manufacturers, retailers, and service providers that help you run your small business. You rely on them for their knowledge and expertise, their equipment, and their skill. Without them, your business wouldn’t be much of a business at all.
It goes without saying that positive vendor relationships are essential to the longevity of your business. Choosing the right vendors and building strong partnerships can help you save money, enhance the quality of your offerings, and accomplish your long-term business goals.
A few strategies for successful vendor management:
We know what you’re thinking — having an emergency fund, building a strong team, managing vendors: these all sound like actions small businesses should be taking anyway.
And that’s the point: Future-proofing your business isn’t some magic spell that prevents the worst from happening. It just means giving your business the foundation it needs to weather the storm — a foundation every small business should have. When done right, it won’t feel like you’re doing anything at all, except running a successful small business.
Read on to learn more about keys to building business resilience.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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