Financial Tips for Navigating Top Small Business Challenges

September 25, 2023

Explore the three biggest challenges in small business finance and get personalized guidance from SECU financial experts on turning these roadblocks into opportunities.

Key takeaways:

  • Inflation remains a major challenge for small businesses, but entrepreneurs remain hopeful that revenues will grow in 2024.
  • A lesser but ongoing concern among small business owners is long-term growth. Inflation and interest rates have caused some business owners to hold off on major growth plans. But surveys show business owners aren’t giving up.
  • With trustworthy financial partners like SECU by their side, small businesses can navigate all the market ups and downs.

Navigating the top 3 challenges in small business finance

  1. 52% of small business owners say inflation is their biggest obstacle.

Inflation affects businesses of all industries and sizes, and it’s by far the biggest challenge impacting their owners. Surveys by the U.S. Chamber of Commerce also show that this concern remains unchanged since 2020.

High-impact financial tips to reduce spending during inflation:

  • Review all of your expenses: And we mean all of them – not just the areas of your budget most easily addressed. Examine your finances closely. Focus on identifying opportunities where you can make the biggest financial impact without affecting the quality of your products or services. 
  • Reduce your biggest time wasters: Don’t just analyze your budget. Take a good hard look at your business practices as well. And don’t discount making changes to your business that involve investing money now for a long-term payoff. Reviewing your operations can help you better apply employee skills and company resources.
  • Ensure you have a trusted financial partner like SECU: In times of high inflation, small businesses need a trustworthy financial party that offers competitive rate lending opportunities and rewards designed for business owners.
  1. Interest rates are a consistent barrier to small business financing.

Concerns over interest rates have been creeping upwards, spiking this summer when the Federal Reserve last announced an increase. The current rate market puts pressure on growth plans, with many businesses unable to afford or qualify for financing opportunities. As a result, small business owners are putting long-term growth plans on hold – at least for now.

How to set the stage for long-term business growth:

Although inflation and rising interest rates are ongoing challenges, small business owners are optimistic about the future. Surveys reveal that revenue is a bright spot among these financial challenges. 71% of small business owners expect revenue to grow in 2024 even as they continue to face financial challenges.

Focus on saving whatever your business doesn’t spend

Put the money your business isn’t spending towards your long-term goals. SECU’s Business High-Yield Money Market allows your revenue to work harder and leverage the current interest rate market. Plus, you have the freedom to access your funds whenever you feel ready to expand the business.

Learn more about the benefits of opening a Business Savings Accounts with SECU.

  1. Small businesses are concerned about the cost of employee benefits.

Job seekers have high expectations for their salary and benefits, and it’s a challenge for small business owners to keep up. Fortunately, small business owners report having strong connections and networks of support for their employees. The close-knit nature of many small businesses has entrepreneurs feeling more confident in their ability to retain talent.

No-cost financial wellness benefits for small businesses

When considering your employee benefits program, think outside the box. Financial stress holds people back from reaching their full potential. Employee financial wellness programs offer resources to address complex money matters.

The benefits of employee financial wellness programs:

  • Improve employee health: Financial stress takes a toll on employees’ mental and physical health, leading to reduced productivity and engagement. Financial wellness programs offer real solutions to address these financial issues.
  • Strengthen engagement: When employees feel supported in their financial goals, they tend to be more committed to their work and the company. Employees will stay with the company longer – and often perform better.
  • Reduce benefits costs: Financial wellness programs help employees build their savings, and manage money. When employees have access to proactive money management resources, they’re less likely to rely on costly employee assistance programs or medical benefits for stress-related issues. This can result ultimately in cost savings for the business.

SECU’s Bank at Work program makes it easy for small businesses to offer comprehensive financial wellness support to employees without adding another cost to their budget. Getting started is easy. Just complete and submit an enrollment form with some basic information about your business, and we’ll reach out to start building a financial wellness program for your organization.

Seek small business finance solutions that grow with you

SECU offers convenient, safe, flexible solutions for small businesses across Maryland. Our community-focused credit union offers competitive rates on small business financing and a variety of financial education resources for both you and your employees to take advantage of. Learn more about the benefits of banking with a credit union as a small business owner.

Share This Article: