Sacrifices Small-Business Owners are Making, but Should Not

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Small-business owners make sacrifices for their business, but should carefully consider which ones allow the best chances for long-term success.

By David Solis

Whether a business is just getting off the ground or growing steadily, small-business owners juggle many tasks in the day-to-day, such as strategizing on tactics to promote their business, locating funding suitable for their needs and attempting to maintain a work-life balance, to name a few. Despite the resources available to them, it can be difficult to strike the ideal balance between self-sacrifice and success.

Small-business owners are extremely dedicated to their businesses, and they possess a strong drive to succeed no matter what it takes. In fact, the Bank of America Spring 2015 Small Business Owner Report found that 67 percent of small-business owners would delay or reduce their own pay before taking any other action, including laying off employees or reducing employees’ compensation. However, a few sacrifices we commonly see entrepreneurs taking may be unnecessary and could do more harm than good.

Trying to do it All Yourself 

More than four in 10 small-business owners say it’s difficult to find qualified job candidates. Many find it challenging to locate a potential employee with realistic salary expectations, so they resort to take on more work themselves. Not only does this divert attention from other pressing needs in a business, but it also does not provide a long-term solution to a problem many owners face.

Instead of adding to your workload, consider investing in training and development for your current team. Your employees will feel appreciated and valued. Having happy employees often leads to a more successful business. Additionally, better trained resources will help free up more time for you to strategize about larger elements of your business.

Sacrificing Personal Finances

According to the same report, more than one-third of small-business owners have carried business costs on a personal credit card. In addition, 29 percent have taken out a personal loan for the betterment of their business. If you fall behind on payments, you could jeopardize your personal credit, affecting your ability to achieve financial success for you personally and for your business.

Resources are available to help you make the most informed choice. Consider consulting with your accountant, small-business banker or other trusted adviser, to help manage through the options and locate funding best suitable for you.

Using Social Media Only Socially

As we live in an increasingly digital world, building and maintaining a strong social media presence is a new tool that can make or break your business. In fact, one-third of owners surveyed for the 2015 report found that social media or online review sites have caused an uptick in customers, and nearly two in five feel that the feedback they’ve received has prompted positive changes in their businesses.

Social media can help serve as a proactive and reactive tool with customers and employees and can also assist in establishing a brand for your business. Consider using social media as a marketing tool to assist in saving time, energy and potential marketing costs while providing a real-time voice to promote your organization.

Overlooking Future Planning During a Successful Growth Stage

After the initial start-up phase, it is likely your business will experience several growth spurts. The latest owner report found that two in three plan to grow their business in the next five years. While it’s exciting to see your business taking off, you could find yourself in a dilemma during these successful bursts. If you are among the entrepreneurs who plan to grow your business, it’s crucial to pay close attention to capital needs and make sure your company’s infrastructure is aligned with its growth, in the short and long term.*

Considerations include:

– Staffing: Do you have the people in place to meet the growing needs of your company and customers? If you do require additional staff, do you have the capacity within your business to properly train them
– Physical space: 38 percent of small-business owners plan to invest in new equipment for their business in the coming year. Do you have the physical resources to support growth? This could include anything from a work space to more room in a manufacturing facility.
– Tools: What are the technology needs of your increased workforce? Do you have the right tools to run your business? This can include mobile devices, such as phones and tablets, as well as computers, company vehicles or other tools.

Failing to Reward Yourself and Recharge

Almost all small-business owners surveyed in our report offer employee appreciation programs, including team outings, office recognition and extra time off. However, 85 percent of those work more than 40 hours a week, and 30 percent said they work more than 60 hours a week. Additionally, more than half said they haven’t given themselves a raise in more than two years — or ever.

As a business owner, you would never ask your employees to work without a pay increase or vacation, so don’t ask yourself to do so either. Allow yourself time to recharge. Whether it’s a long weekend or taking time each week to exercise or socialize, it’s important to invest in yourself.

All small-business owners will make sacrifices for their business, but it’s important to be thoughtful about which sacrifices you do make to give yourself and your organization the best chance for long-term success.

*Consult your competent financial, legal and accounting advisers, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

David Solis is a small-business centralized sales executive for Bank of America.

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