Small business owners and entrepreneurs face unique challenges in today’s world. The pandemic has given them more reasons to worry about their business, even though it’s over. Nevertheless, with all that’s going on, many entrepreneurs are not giving up on their business; they are still undertaking new risks and constantly seeking new opportunities to grow their business in the face of the world’s challenges.
Granted, balancing priorities might not always be easy, but as each year brings new challenges, here are three top questions that are on many entrepreneur’s minds in 2025.
How can I grow my business despite inflation?
According to an article by The Toronto Star, half of Canadians say that inflation and the rising cost of living will continue to be the biggest challenge they will face in 2025; undoubtedly, this includes small business owners as well. This leaves small business owners with a challenging question; should they increase prices next year or find other ways to reduce expenses?
Inflation doesn’t have to stall your growth. To counteract the effects of inflation, carefully consider where you are spending your money. Auditing plays a crucial role in this case. For starters, you can consider moving to a more affordable office space. You can also categorize your expenses into things you can afford and things that you cannot; in doing so, you prioritize what matters most. There are several online expense-tracking software tools, such as QuickBooks, that you can also use.
It’s also helpful to diversify your sources of revenue. For example, if you are a fitness studio owner, you could offer virtual programs or consider starting your own line of fitness products. To move forward, work with an accountant or a financial advisor to identify which revenue streams are more effective for your business. Begin by analyzing your cash flow and balance sheets to gain insight into making informed decisions.
Another helpful way to counteract the effects of inflation is to consider partnerships. Partnerships allow entrepreneurs to leverage each others’ strengths to achieve a shared goal. They could also cut or reduce shipping costs and improve efficiency. For example, a local coffee shop could negotiate bulk discounts with a nearby bean roaster, or a designer clothing store might collaborate to share fabric costs for their garments. Whatever you choose to do, remember that your goal is to stay afloat in an increasingly competitive market.
How can I stay more competitive as more customers shop online?
Brick-and-mortar stores aren’t as popular as they used to be; increasingly, many people are reverting to online shopping to get everything and anything they want fast. Granted, there are several online stores, and standing out can be particularly hard when there are thousands of online stores in your niche.
Nevertheless, that doesn’t mean you should give up; instead, consider implementing small changes for a big effect. For example, you can create a seamless checkout experience for clients by offering multiple payment options, by including credit card payment apps or other gateways.
Invest in analytics software tools to transcend your e-commerce experience. Use tools like Google Analytics and others to help you gauge click-through rates on your website. AI-driven data, on the other hand, can help you simplify complex data and generate actionable insights without hiring a dedicated team. Last but not least, interact with your clients in new ways. Consider incorporating a chatbot to answer online queries, and never underestimate the power of newsletters and email campaigns to keep customers informed and engaged.
Should I leverage my entrepreneurial experience to start a side-hustle?
In a 2023 survey by RBC, 88 per cent of respondents agreed that one income didn’t suffice thanks to inflation; many believe that a side-hustle provided them with more financial freedom and security. As an entrepreneur, you might be tempted to start a side-hustle as well, and there is nothing wrong with that.
Nevertheless, there are a few pointers to consider. If you already have an established business, choose a side-hustle that complements your expertise. If you are a baker, for example, you could open a shared commercial kitchen for rent or start your own signature cookbook.
Once you have established your side-hustle, keep costs low in the beginning and gradually increase them over time. You can start freelancing or selling your products online; such initiatives provide an easy entry point to grow your hustle. Once you have gained solid footing, you can balance multiple projects by utilizing automation tools, such as scheduling apps, to keep track of your expenses, to stay organized, and grow your business.
Maintaining a business in our day and age can be a challenging feat, particularly with the rising threat of inflation and an ever-growing competitive market. Nevertheless, employing these small, consistent actions can lead to successful wins.
David Messiha | Staff Writer
