Small Business Owners share their biggest obstacles and tips for success

Incfile, a leader in online business formation and startup services, today released new data showing the state of seasonal small businesses this summer. Incfile asked 2000 small business owners, who operate at their peak during the summer, to share their biggest obstacles and best tips for those in the trenches. To see the complete results of Incfile’s survey, please visit Incfile.com.

BIGGEST OBSTACLES FOR SMALL BUSINESSES UNCOVERED

When asked about their biggest obstacle this summer, 36% of respondents said it was trying to stand out in a crowded market. Hiring talent and budgeting for marketing were tied for the second and third spots, at 24% each. Another 15% said increasing operating hours in the summer was a major hurdle.

SUPPLY CHAIN ISSUES ARE IMPROVING

58% of small business owners say supply chain issues have improved since last summer. Previous small business surveys conducted by Incfile found that supply chain issues were a major roadblock for business owners, largely due to the COVID-19 pandemic. Luckily, those tides appear to have turned in the last year, as close to 60% now say the supply chain issues are beginning to resolve. Just 15% say they’ve seen no change in supply chain delays, while 27% report more delays.

SUSTAINABILITY

Summer is when awareness turns to nature, earth, and oceans, bringing sustainability and ecological responsibility to people’s minds. In our survey, 85% of respondents said they felt greater pressure to be more sustainable and environmentally friendly as a summer business, while just 15% said they didn’t feel that pressure. Many business owners say they want to be more sustainable, but there are barriers standing in their way. In fact, 42% said it’s simply too costly, while another 22% said they aren’t sure how to reduce business costs to make up for it.

Beyond that, 24% reported that it’s difficult to find eco-conscious suppliers, and 12% said the impact of sustainability efforts is just too difficult to prove.

57% OF ENTREPRENEURS EXPECT AN INCREASE IN REVENUE THIS SUMMER

57% of respondents said they’re predicting revenue growth of 30%-50%, while 30% said they expected to see up to 30% more revenue during the season. So how do they ramp up and get ready for a blazing sales season? 41% reported they’re planning to add new products or services to their lineup. Another 29% are tackling the busy months by hiring more staff, and 22% are putting their money where their mouths are and increasing their marketing budget to expand their reach and be heard.

Nearly 40% of Business Owners Say They’ve Raised Prices to Combat Inflation

Another challenge uncovered in previous surveys is the looming and lingering threat of inflation. As the economy continues to fluctuate, entrepreneurs are faced with the very real dilemma of how to balance rising costs with their often tight budgets. Perhaps not surprisingly, 36.5% of small businesses are increasing prices this summer to offset the negative effects of inflation, 24.9% are cutting low-margin products and services altogether, and 31% are negotiating better domestic and international supplier deals.

“For so many entrepreneurs, the summer season brings an increase in business, and with that, an increase in stress and day-to-day challenges,” said Dustin Ray, Chief Growth Officer & Co-CEO, Incfile. “It’s inspiring to see the candid feedback from real entrepreneurs, hustling every day to realize success. There’s no question learning from others sharing the same experience will help small business owners navigate the busy few months ahead.”

TIPS FOR ENTREPRENEURS FROM ENTREPRENEURS

We asked Incfile’s small business community to share tips on how they navigate the busy summer season; here’s what they had to say:

• Invest time and energy in hiring right - Instead of focusing on hiring the most staff possible, focus your energy on hiring the right people and building a team with a strong foundation.
• Have the proper staff trained and ready - Start training before the summer months
• Build your community - work with professionals and successful entrepreneurs to seek their advice and guidance to help you achieve your goals. Include non-business owners, too. In fact, according to our survey, 32% of respondents said they rely on family and friends to help them avoid burnout.
• Manage personal time off effectively - encourage staff to schedule well in advance or take during off-peak times. Offering incentives for this (banked time, extra days) can be more cost-effective than hiring additional people.
• Protect your own time - plan to set some time aside once the season is over to recover and recharge. It’s a common practice — in fact, 52% of respondents said they plan to take some time off starting in the fall.
• Fill your toolbox - look at email automation tools, social media management, chatbots, or marketing automation like HubSpot to save time and maximize summer campaigns. In our survey, 29% say they’re automating business processes as much as possible because it helps them avoid burnout. Another 28% say this is the one thing they’d do if it would make their business grow faster.

To learn more about Incfile’s Summer Small Business survey, please visit Incfile.com.

About Incfile

Incfile is a leader in online business formation and startup services. Since 2004, Incfile has simplified the process of registering and running a business for over 800,000 entrepreneurs and small business owners. In addition to streamlining formation and incorporation with end-to-end service, Incfile’s all-in-one solution delivers a full suite of essential ongoing services like compliance, banking, bookkeeping, and more. With simple pricing, no contracts or hidden fees, $0 LLC formation, and one free year of registered agent service, Incfile offers unparalleled value for the modern entrepreneur. Incfile is proud to be recognized in Inc. Magazine’s Inc. 5000 National Awards in 2022 and 2023. For more information, please visit www.incfile.com.

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