4 Unexpected Challenges in Starting a Small Business and How to Overcome Them

*Welcome back to The Domino Effect, I'm Dominique. If this is our first-time meeting, you can learn a little more about me and my passion for female and diverse small businesses by clicking here.

So you've got a small business idea, or maybe you're already an established business. No matter what kind of business you have, whether it's an e-commerce business, a manufacturing business, a professional services business or a retail business. Whether you're selling B2B ("business to business") or B2C ("business to consumer"), many small business owners face some of the same obstacles along the way, especially underserved entrepreneurs.

With that said, let's talk about 4 of the biggest challenges in starting a small business, and how you can OVERCOME these problems! 👊

1. Forming an LLC or other legal business entity

If you want to make your business "official" in the eyes of the law, (and make yourself attractive to lenders and credit issuers), you ned to form a limited liability (LLC), S Corporation, or other legal business entity.

This will help you establish a separate entity for your company that's different from your personal identity and personal finances. This lets you get an Employer ID Number (EIN) which basically like a social security for your business. 🙂

AND it saves you time (and money) at tax season, by making it easier to track your business expenses. File your business entity at your Secretary of State. You'll need to file official paperwork and receive your "Articles of Organization," depending on the state. So do your research!

👉FYI: You can do this yourself. You don't have to hire a lawyer or an accountant to form an LLC for you. Some people like to pay for professional help to make sure all the details are done properly or because they're simply too busy. Don't forget you can also connect with us at DominoFX Group and we'll walk you through it step-by-step.

2. Opening a Business Bank Account 🏦

Once you've set up your LLC or Corporation, gotten your EIN (and your DUNS), you can open a business bank account. Getting a business checking account gives you a home base for your business finances, a dedicated place for your business revenue to go.

Set this up immediately because lenders and credit issuers will assess your business bank accounts when your'e ready to start applying for capital. If you have good personal credit, you can also apply for a business credit card to help pay bills and manage expenses.

💎TIP! As a new business owner most places will ask to use your personal guarantee. REMEMBER! You don't have to do this right away. Your personal credit was never meant to fully fund your business. Invest your personal guarantee and start building your business credit under your EIN first.

Opening a business bank account isn't hard and IS crucial so don't wait or skip this step.

3. How to Get a Small Business Loan💼

Being that your business is new (or even if your'e established but didn't know about this) it's likely your business doesn't have any established credit history of its own, so this can make it difficult to get a small business loan.

Many traditional banks prefer to see a few years of revenue and tax returns before they'll issue you a conventional small business loan to your company. Not to mention all the systemic challenges many underserved businesses face when applying.

But don't be discouraged because now there's many options to getting approved when the big banks have said no. Options like the SBA are available, though sometimes the process can be slow.

Consider non-bank alternative lenders that issue small business loans and lines of credit online, with fast underwriting and more immediate approvals if you qualify. Now there's a system to this because you don't want to be just out there applying. That's how you run into issues like inquiries, denials, or accepting predatory offers. Remember not all money is good money so connect with a technology-enabled marketplace like DominoFX Group that provides guidance on the best type of financing that suits your need and direction your'e headed.

4. Put Yourself Out There & Market Your Business

The most important and common challenge when starting and running a business is making sales, marketing your business, finding and retaining customers. Even you've already got a strong product-market fit, even if you're already seeing strong demand for what service you provide or product you sell, you still need to make marketing and sales a priority.

Tips to Market Yourself:

1. Create a website. I speak from personal experience we know many lenders and credit issuers and looking to see if your business has a legitimate online presence. Incorporate SEO and automated marketing systems. I personally really like Profitlifter. They have an excellent support system and the system is super easy and fun to use.
2. Create a social media page. I had a coach who told me your social media landing page is like your digital resume. This is 2024 and we must apply new and unique ways of building our brands. Therefore, you must be involved in social media. You don't have to be on all platforms. Pick the ones that will fit best with the nature of your business. For example, Pinterest and Instagram is great for e-commerce. If you have a CRM system like Profitlifter, you can automate your content which makes it so much easier and saves you a lot of time.

BONUS: Automate Your Systems

Marketing can be challenging because putting yourself out there (especially if it's not something you've done before) can be intimidating. Keep in mind, the more you learn about your customers and the more you engage, the easier it will become. A quote that stuck with me is "What I have is not for everyone, I'm speaking to the people who want to hear what I have to say."

So get clear on your avatar, who you're audience is and just talk directly to them!

⭐THE BOTTOM LINE⭐

Starting a business is one of the greatest, most challenging and yet most one of the most exciting experiences in life. Small businesses are VITAL to our economy, ultimately leading to the creation of new industries, products and services that increase economic activity. Fresh innovations from female and diverse startups and founders greatly contribute to the economic development of our society.

Did you know? 📘

• Small businesses are important pathways for local communities to grow and retain wealth.
• Small businesses have also built generational wealth for families.
• Small business ownership improves equity in job opportunities.
• Small businesses also contribute to neighborhood cultural identity by building social and entrepreneurship networks that facilitate people feeling embedded in their communities, and encouraging them to also become financially invested in their communities.

I believe economic empowerment is essential for every American’s future, no matter their race and income level. If we work together to increase female and diverse economic activity, I believe you boost the economic future of the entire United States.

1 PIECE OF ACTIONABLE ADVICE: TAKE ADVANTAGE OF YOUR RESOURCES 🎯🔥

Upcoming Pitch Competitions:

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The deadline to submit the application is June 10, 2024 at 11:59pm PST!

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