The 5 Biggest Threats to Small Businesses in 2019
Most entrepreneurs are optimists. After all, you have to be a bit of a dreamer to start a small business in the first place considering the likelihood of failure. And while having a positive attitude is beneficial in many instances, it’s important for small business owners to recognize when their company is facing trouble. Though it’s impossible to predict exactly what the coming year will present for small businesses, every entrepreneur should prepare their operation for these five imposing threats:
Recession
There are few things more frightening to a small business owner than the prospect of an impending recession in the coming year. Yet, despite the economy’s excellent performance in recent months, 2019 could turn sour in a hurry for a number of industries. What’s so frightening about a potential recession is that –– should it reach or exceed the level of the 2008 financial crash –– virtually every company in the world will be affected by it. And, of course, short of saving up and planning for a rainy day, there’s little entrepreneurs can do to prepare for one.
Negative Feedback Online
Modern consumers place an inordinate level of trust in online referrals and reviews. As such, nothing can sink a company’s prospects faster than a rash of negative reviews on a few influential third-party sites. True, no business will ever achieve 100% customer satisfaction, but it’s more crucial now than ever before to focus on offering top-notch customer support. Otherwise your consumer base could turn against you in an instant.
Legal Trouble
From employee insurance claims to internal disagreements, few small businesses can afford to engage in a protracted or expensive legal battle. Even family-owned businesses aren’t immune to the prospect of warring factions, internal power struggles, and damaging lawsuits. What’s worse is that when companies do survive extended legal proceedings, they still often suffer from reduced financial capabilities, and their brand may be tarnished beyond repair.
Cybersecurity
It should go without saying that all business owners need to protect their assets –– particularly those stored online. Hackers have become increasingly sophisticated over the years and if you’re not careful, they could easily gain access to some of your most sensitive personal and professional information.
Changing Demographics
Whether your business sells micro blood collection tubes or shower gel, it’s hard to ignore the changing trends in consumer behavior and demographics. Millennials now comprise the majority of the workforce and consumer base in the US, and unless your company adapts to meet the needs of young shoppers, it could quickly become obsolete.
