Starting, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't always smooth. There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking. So, what can you do to beat these challenges and make the journey as frictionless as possible? 5 proactive ways to overcome your business challenges We’d all love to know what lies around the corner when it comes to the future path of your business. The truth is that every business journey is unique. But there are common challenges that every owner-manager or CEO will be faced with – and being prepared for these hurdles is the best way to leap over them and take each challenge in your stride. We’ve highlighted five common challenges and the simple ways to overcome them: Uncertainty No-one has a crystal ball to know exactly what's coming around the corner. But there are ways to be prepared for some unknown circumstances. You can't fully predict the main external threats like government policy, economic conditions or freak weather conditions. But you CAN use forecasting and scenario-planning tools to build up contingency plans so you have a Plan A, Plan B and even a Plan C. With forecasts of your business data, finances and industry trends, you can be ready to react, pivot and take positive action. Competition Small businesses often face stiff competition from larger, more established companies. To stay ahead of the curve, it's important to be nimble and agile. It's also vital to find your niche and to know precisely why your customers value your offering. By ploughing a unique furrow and keeping your customers happy, you can give yourself an edge over larger, slower-moving corporate-size competitors. Access to capital It can be a struggle to secure funding as a startup, particularly if you have limited financial resources or a poor credit history. Having a detailed funding strategy is a crucial way to overcome this problem. Keep your finances in order and make sure you have in-depth financial reports to show banks, lenders and investors. It's also helpful to focus on paying suppliers on time, keeping debt levels under control and ensuring your cash flow is in a positive position. These are all excellent ways to improve your business credit rating and show you're a stable, risk-free prospect for lenders. Hiring and retaining employees Attracting and retaining talented employees is difficult, especially during the ongoing talent shortage. Offering competitive salaries or benefits packages can be one way to attract people. But it's also important to think about your brand reputation, your sustainability credentials and your CSR policy – all things that Millenial and Gen Z workers value alongside decent pay and benefits packages. Employees want to be proud of where they work, so make your company a progressive, satisfying and rewarding place to work. Keeping up with technology Business technology is evolving at a rapid pace. It can be daunting keeping up with all the available apps, tools and software solutions that are aimed at your business. The trick is to be informed but selective about the apps you use. Start with the operational and financial needs of the business and look for apps that can automate, improve efficiency or provide improved data and management information.  Talk to other business owners and your professional network to find out what the essential apps are in your industry. And do your research and homework before you choose any software solution to add to your app stack. Talk to us about being an agile small business Looking to the horizon for the upcoming pitfalls is essential as an ambitious and informed business owner. As your adviser, we can help you generate the most informative management information, to keep you agile and ready for what lies around the corner. We’re also on hand to discuss your ongoing strategy, how to react to upcoming risks and the best ways to access capital and manage your company’s finances. Arrange a meeting with Donald Inglis and let’s see what the future may bring for your business.

Traditionally, when your small business needed an injection of capital, the Big Four banks were the place to go. Barclays, HSBC, Lloyds and NatWest offered a wide range of business loans and there were limited alternative routes to business finance. But today, the major high-street banks are increasingly reluctant to lend to small businesses. Let’s look at why small businesses are finding it harder to access funding, and four alternative routes to finance that your business could explore. High-street banks are pulling back from lending to small businesses A recent survey from business lender, iwoca, found that 71% of SME finance brokers agree that mainstream banks are pulling back from small business lending. The Big Four banks see small businesses as volatile, risky and less attractive as borrowers than larger, stable, corporate organisations. This has led to ambitious UK small businesses finding it difficult to access funding. Without access to an injection of new capital, your business may find it difficult to fill the cashflow gaps, invest in growth or start new projects. 4 alternative routes to funding for your small business Don’t worry, though, the news isn’t all bad. With the banks offering less funding, this has created an opportunity for alternative lenders and alternative routes to funding. With high street banks no longer the obvious first port of call for funding, you’re free to consider the entire funding market and a range of brand new finance options. Here are four potential routes to funding: 1. Non-banks and fintech lenders In recent years, we’ve seen considerable growth in the non-bank lending market. Specialist online business lenders, like Funding Circle and iwoca, offer flexible, short-term loans without the lengthy and complex application processes you’d expect from the high-street banks. Non-banks will generally focus more on your business performance and future revenue generation potential, rather than your business credit score. This is helpful for start-ups that have limited trading history, or businesses with poor credit scores. 2. Peer-to-peer lending Peer-to-peer (P2P) lending platforms, like Folk2Folk, connect businesses seeking loans with a network of individual and institutional investors through online platforms. P2P is often a faster, more flexible alternative to banks, allowing you to quickly raise capital and to invest it back into your latest project or growth strategy. Unlike traditional equity funding through private investors, P2P doesn’t require you to give up any ownership stake in the business, so it’s a great way to raise money and stay in control of the business. 3. Invoice finance Invoice financing through a provider like Kriya allows you to sell your unpaid invoices. This effectively gives you an advance on the money currently owed to you by your customers.The finance provider gives you a percentage of the invoice's value upfront, helping you to solve urgent cashflow issues caused by slow-paying customers. While you won’t be able to raise large sums of money this way, it’s an excellent solution for getting your cashflow under control. 4. Crowdfunding Crowdfunding through a platform like Crowdcube or Kickstarter allows you to raise funds from a large number of people through an online platform. There are several types of crowdfunding, including: Equity crowdfunding: selling shares in the company Debt crowdfunding: raising a loan from many lenders Rewards crowdfunding: offering products or perks in exchange for investment Get your funding strategy sorted Having a detailed funding strategy, and aligning it with your business plan, is fundamental to keeping your business well-capitalised and cash flow positive. We’ll help you review your funding needs, create a funding strategy and compile the financial documentation needed to access your chosen route to funding.