I have been in the small business space throughout my career, from my first job as a pharmaceutical representative visiting doctors, first in banking, then as a consultant, and now leading the small business division for Mastercard. I've been involved. But it's really been a part of my life for as long as I can remember. I grew up listening to my grandfather's stories. His grandfather started the business in the trunk of his car and grew it into a national pharmaceutical wholesale company. Later, I worked there and saw firsthand the fruits of my grandfather's labor.
For me, it was always about the underdog. I admire their ambition and understand their struggles. We also appreciate how their collective entrepreneurship empowers communities and boosts economies. That's why I work hard to lead Mastercard's small business efforts and mentor hundreds of entrepreneurs over the years.
In that spirit, and in celebrating the resiliency and innovation of millions of American entrepreneurs during Small Business Month, I've answered the most common questions I've answered over the years about starting, growing, and sustaining a small business. Here are some of the questions.
“I don't know what to do. There's too much to do and not enough resources. Where do I start?”
One of the most difficult things about running a small business is not having your own chief marketing officer, chief financial officer, or chief technology officer. (Or you do, but they are all you!) To organizations and people like lawyers, accountants, and other small business owners who can help you achieve these objectives and provide expertise and guidance. Please be surrounded. You can also look for additional resources in other businesses in your ecosystem. For example, the Mastercard Digital Doors program provides a variety of tools, resources, and education you won't find anywhere else to help strengthen and digitally enable your business operations. It’s important to have the right digital tools, such as customer management and digital payroll, to operate efficiently and increase productivity.
“I'm late to digital innovation. The pandemic taught me that if you don't have a digital presence, you'll lose customers. Where do I start?”
When COVID-19 hit, one-third of small businesses in the U.S. had no digital presence and quickly realized how the coronavirus would impact their ability to reach customers. Fast forward to today, and many consumers expect brick-and-mortar businesses to become fully digital as well. For small and medium-sized businesses, it is important to reach customers where they are, including both physical and digital spaces. Showing up in one of these spaces will slow down your business. If you do both, you will get a synergistic effect.
There are plenty of tools to help you set up your website and digital marketing campaigns, as well as software to help you run your business more efficiently. Digital extends your reach and provides a way to get things done with fewer people. Digital Doors brings it all together to provide you with a free digital business valuation. It helps you assess your digital operations by providing customized recommendations on next steps to further your digital journey.
“How can I represent my business so I can access capital?”
One of the biggest mistakes small business owners make is confusing their business with their personal financial life. If you represent yourself to a bank or organization seeking funding, you can separate your personal life from your business, such as using a business checking account or separate consumer and small business credit cards. It is important to indicate as You want to truly represent yourself as a small business owner. For example, if you are raising money, it will be difficult for banks and other entities to accurately understand your financial situation and creditworthiness. Don't make it difficult for them to lend you money.
“How do we deal with inflation? We find it difficult to compete with other businesses and the various benefits that other businesses offer.”
It depends on your business. Naturally, if you have inventory, inventory management is important. You don't want to carry costly inventory. Don't spend more money than necessary, buy expensive things and sit in the back room. Make sure you manage your cash flow properly to understand what money is coming in and money going out. With inflation, there is very often more money going out than coming in, so how can you improve your front-end operations (also known as the customer-facing side of your business) and your back-end operations? It is important to consider. work. Learn how to leverage social media and marketing to help promote and grow your business (hint: check out the Mastercard Marketing Hub) or better manage the money you spend on the products and services you make and sell. What should I do?
“The product we're selling now is doing really well, but how do we know when it's OK to expand or add other products?”
This is a big deal. If your business is doing well, you tend to do more, add more. When things are going well, we stick with that path for a while, but once we start to see consistency, I think that's when we can demonstrate our ability to expand. For many people, seeing a little bit of success makes them want to change the world. But if you wait and have enough success; intention change the world.
“There are a lot of credit card offers for small business owners. What should I look for?”
Many credit cards are generic in what they offer. You need to make sure that the card benefits directly help you run your business. Cashback is helpful in terms of providing funds to put back into your business, but also look out for built-in perks that give you specific tools your business needs, discounts you use frequently, and education/resources that will benefit you as a business. please. Owner and your business growth. Which benefits make the most sense for you and your business? Check out Mastercard's small business benefits and products to find the best one for your needs.
“I feel alone in this small business journey. Where is the best place to ask for help?
There are many organizations established to support small businesses. Your area likely has a local chamber of commerce, a small business development center offered by the Small Business Administration, or a women's business development center to support underserved populations: women. Organizations like Mastercard have specific groups focused on helping small business owners. For example, Mastercard's Small Business Community provides small businesses with a platform to learn, grow, and connect with Mastercard and its network of partners.
Finally, here's one question small business owners don't usually ask, but you should. “How important is cybersecurity?”
Never think you're too small to be a target for cybercriminals. Maintaining a strong cybersecurity posture is extremely important. The cost of a single data breach can be devastating to your business. According to his 2023 Hiscox survey of U.S. small business professionals, the median annual cost of a cyber attack against a company is his $8,300, and half of ransomware victims It turns out that all the data could not be recovered and the system had to be rebuilt. And even if you are able to financially survive a breach or ransomware attack, customer trust may be permanently damaged. Take advantage of free resources like the Mastercard Trust Center to access cybersecurity education, resources, and tools to help improve the security of your business.