When you run a business, you take frightening risks, make scary decisions, and occasionally commit a regretful mistake that comes back to haunt you. Breaking out of your comfort zone to grow to the next level can be spine-tingling, but without doing so, your business could end up as lifeless as a zombie.

In the spirit of the Spooky Season that is upon us, here are 5 scary realities that all small business owners can relate to, along with tips on how to ensure running your business doesn't feel like Halloween every day!

1. Say yes, and figure it out later

As a small business owner strapped for cash, sometimes you have no choice but to take whatever is in front of you and figure it out as you go, even if you aren't entirely sure how you're going to pull it off. On the outside, it's bright and shiny, and seemingly all things are under control. But inside? It's havoc, everyone running around with their heads cut off trying to figure out how to make the deal work.

As time goes by, you'll be surprised how often this is the case. While you may begin with a vision, you’ll most likely not have all the answers in place in terms of processes.

In situations like this, flexibility to pivot and the confidence to say “yes” to opportunities should be ingrained in your company’s DNA. One of the reasons companies that used to be at the top of their industries but experienced drastic falls, is the failure to adapt and be flexible in light of changing market needs and preferences.

2. Cash is king

Business is about inflows and outflows, and the inflows should always be greater than the outflows to make a profit. It sounds incredibly simple but it’s the hard truth!

Statistics show that nearly 60% of small to medium-sized enterprises (SMEs) fail because of cash flow problems.^[1]As a business owner, you’ve probably learned how difficult it is to manage income and expenses appropriately. Even if you have the system in check, unexpected expenses may hit you at the end of the month. Therefore, having a solid operating cash flow consolidates a financial reserve for unexpected expenses so that you don't have to choose between paying off a surprise tax bill and making payroll.

3. Owning a business is not a job, it’s a lifestyle

All the late nights that turned into mornings, the weekends that turned into workdays, and the vacations that turned into working holidays have probably shown you that being an entrepreneur is not something you can easily plug out of and return to another day.

As a small business owner, you are probably the nexus of your business. People depend on you to set the direction of what they should do next, how to grow the business, and what to do during times of crisis.

That said, burnout is real. An exhausted entrepreneur can be a liability to their business, so business owners should always maintain their physical and mental wellbeing. Work smarter, not just work harder, and decentralize tasks by delegating and providing your core team with essential skills training. That way, when you need to take a day off, you can afford to do so without worrying that your entire business will go to a standstill!

4. You will make mistakes

Have you tried to do it all and in the end found that you were able to do only half the job well because you were spread out too thin? Have you rolled out a great product portfolio but realized too late that you needed a better marketing strategy?

There are many mistakes entrepreneurs running startups could have made along their journeys. However, it's important to realize that mistakes are part of the game. Those who succeed are the ones who take on a growth mindset and learn from their mistakes. They understand their strengths and weaknesses, and recalibrate. As how Nelson Mandela puts it, "I never lose, I either win or learn."

5. You’ll want to give up

“Did I make a mistake starting a business?” “Should I just quit now?” “It’s never going to get better.” These are likely thoughts you’ve had before as a business owner, particularly when you were stretched out of your comfort zone, strapped for cash, on the verge of burnout, or having made a major mistake.

This has been true now more than ever, in light of the global pandemic. A lot of business owners have felt stretched to their limit, caught between trying to keep their business afloat and making difficult decisions that have often resulted in letting go of certain people, shutting down certain services, and running overdrafts and arrears.

Building up resilience is the process of reminding yourself that things will not always stay the way they are. Resilience also means having the fortitude to be able to make tough calls when you need to. What is important is establishing mechanisms that help you maintain your optimism and objectivity during such times of crisis.

It doesn’t have to be scary

Starting your own business from the ground up can be super fulfilling. You probably follow the Instagram feeds of self-made millionaires and billionaires who make it look easy. But it’s not.

It’s important to work with the right partners to help make your life easier.

Alibaba.com is a leading global B2B trading e-commerce marketplace. Founded in 1999, Alibaba.com connects millions of buyers and suppliers in 200 countries worldwide across 40 major product categories. With more than 150,000 suppliers from over 200 countries and regions, buyers can find almost everything on our platform.

Beyond this, Alibaba.com also provides buyers with a number of resources, including online trade shows offering great discounts, livestreamings showcasing real-time factories, and industry trend reports giving ideas on what to buy.

With the right e-commerce partner and access to the right market and products, running a business doesn’t have to be all that scary.

References:

https://www.forwardai.com/knowledge-center/blog/forwardai-predict/small-business-cash-flow-statistics-the-list-to-end-all-lists/#Small_business_cash_flow_statistics_and_facts