Last month I participated in a Google Hangout with Rieva Lesonsky, CEO of GrowBiz Media and SmallBiz Daily; Nikhil Arora, co-founder of Back to the Roots; and USA TODAY senior small business columnist Steve Strauss entitled, “Small Business Success: Finding Talent and Balance.” During our 30-minute discussion, the panelists shared their experiences making sacrifices for their business and offered advice for small business owners looking to find the balance between self-sacrifice and success.
Small business owners are very dedicated to their businesses, with 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 by yourself. Many small business owners are saying it’s difficult to find qualified job candidates with realistic salary expectations, and therefore take on more work themselves. Consider investing in training and development for your current team; your employees will feel appreciated; and having happy employees often leads to happier clients. Additionally, better trained resources will free up more time for you to think strategically about your business and future growth opportunities.
- Sacrificing personal finances. According to the spring report, more than a third (35 percent) of small business owners have carried business costs on a personal credit card. In addition, 29 percent have taken out a personal loan. If you fall behind on payments, you could jeopardize your personal credit, affecting your ability to achieve personal and business financial success. Resources are available. Consider consulting with your accountant, small business banker, or other trusted advisor, to help manage through the options.
- Failing to reward yourself and recharge. Nearly all (94 percent) small business owners from our survey reported that they offer employee appreciation programs, including team outings, office recognition and extra time off. However, more than half of small business owners we surveyed said that they haven’t given themselves a raise in more than two years…or ever! You would never ask your employees to work 40+ hours without a pay increase or vacation, so don’t ask yourself to do so either. Allow yourself time to recharge. Whether it’s a short vacation or taking time each week to exercise or socialize, it’s important to invest in yourself!
All small business owners know they must make sacrifices for their business from time-to-time. However, make sure you are thoughtful about which sacrifices you do make in order to give yourself and your business the best chance for long term success. For additional thoughts on these topics and more, you can watch a recorded replay of the Google Hangout. Check it out by clicking here.