Making a Dream, a Reality
Small business owners embark on what is, for many, the most exciting challenge of their lives - pursuing the dream of owning a successful business. With the proper planning and resources, budding entrepreneurs can realize the dream - and avoid potential nightmares. Pacific Capital Partners offers the tools, strategies, and financial resources to help avoid those sleepless nights, and put you on the path to success.
The path to small business success is fraught with peril...
...largely due to avoidable issues, poor decision making, and circumstances unforeseen from lack of experience.
Business
Little demand for product or service Product trending toward obsolescence
Substandard operational controls
Employees
Weak leadership, lack of vision
Poor recruiting and training
Inappropriate employee behavior
Financial
Insufficient start-up capital
Lack of access to new capital
Inadequate financial controls
Marketing
Lack of market awareness
Off-target messaging
Insufficient marketing resources
Job #1: Make Sure That You Have Access To Adequate Capital
The number one reason that early stage businesses fail (other than choosing a flawed business idea) is undercapitalization. How does an entrepreneur avoid this often fatal error?
Financial Planning and Management
Before opening your first store or taking your first order, be sure that you have taken the requisite steps to create a documented business plan, with an eye on financial budgeting and controls. Construct a smart, realistic, and viable plan - and stick to it.
Adequate Access to Capital
Whether it is personal savings, capital carried over from another endeavor, a loan or line of credit, raised investment capital, or a loan from dad, ensure that you have sufficient available capital to carry your business through the early pre-profit months - or years.
Our Commitment
We owe each and every member of our Armed Forces a debt of gratitude for their selfless commitment to our safety and freedom. And we owe them a welcome home. Pacific Capital Partners is committed to contributing to a safe and supported transition to civilian life for all of our returning veterans and their families.
John Yarbrough
Executive Managing Director
Pacific Capital Partners
VA Loan Welcome Home Program
Offering veterans returning from service an opportunity to purchase a freshly remodeled home of their own - with no down payment and no mortgage payments for the first year.
Gov't Veterans Programs
We're here to help.
Pacific Capital Partners is committed to helping small business entrepreneurs all across the country achieve their dreams and experience the pride of successful small business ownership. We have the tools, resources, experience, financial partners, and gratitude for the good fortune that we have enjoyed, to share with our entrepreneurial clients in pursuit of their own success.
"I'm a great believer in luck. I find that the harder I work, the more I have of it."
- Thomas Jefferson
Top 5 Challenges Small Business Owners Face
Top 5 Challenges Small Business Owners Face
Understanding the unique issues faced by small businesses can help you be more successful.
Small businesses in America are experiencing exceptional rates of growth. In fact, this is one of the best times to own a small business. If you’re a small business owner or are considering starting your own business, the market may be primed to help you reach success. However, there are still a number of challenges you’ll likely face. Before you forge ahead, you should be aware of the issues that could trip you up. Here are five of the most common challenges you may encounter.
Lack of Funds
Nothing can hold a business back like money problems. This is even more true for small businesses. While most larger companies have enough cash flow to keep up with payroll and keep the lights on, small businesses are often in a less stable situation. If one big client fails to make a payment, your small business may not be able to cover its bills. There are plenty of tales of small business owners giving up their own salaries in order to pay their employees and vendors. And, sadly, there are plenty more stories of small businesses failing because they ran out of funds.
Lack of Time
Are you working on the business or in the business? For small business owners, the answer is often both. You are the one responsible for executing business plans and winning new business, but you might also be answering the phones, filing the paperwork, and dealing with vendors. The smaller your business, the more tasks you’re likely to have. This time crunch can be difficult to manage and can cause important matters to fall through the cracks.
Trouble Finding Good Employees
There are 30.2 million small businesses in the United States, accounting for 47.5% of all jobs.1 But that doesn’t mean finding qualified, hardworking employees is easy. In many instances, your small business’ benefits package won’t be able to compete with what large companies offer. Additionally, while large businesses can hire people for one specific task, you may need employees who can handle multiple tasks. You’re also likely to need people who have the personality necessary to succeed in a small business environment, where change is common. All of these factors can make finding the right employees challenging.
Difficulties Balancing Growth and Quality
It’s a common story: one day you’re celebrating landing a big client, and the next day you’re struggling to keep up with the new client’s needs. For small businesses, growth often comes with growing pains. In many instances, you have to make the choice between working long hours—and asking your staff to do the same—or finding ways to cut corners. Neither is a great solution, meaning that, ultimately, you will have to find a way to grow your business without hurting your business.
Ineffective Web Presence
Marketing, in general, can cause small businesses a number of problems. Advertising is expensive and word of mouth is slow-moving. The internet provides opportunities to find customers without breaking the bank, but many small businesses don’t do enough with their online presence. You probably know that you need a website, but is it SEO optimized? Does it utilize responsive design? Is it driving sales or is it nothing more than an online billboard? And your website is just one piece of your online presence. You also need to consider social media like Facebook and Twitter, and pay attention to review sites like Yelp where one dissatisfied customer can damage your reputation. Large companies have entire departments devoted to online activities, but small businesses often struggle to keep up with all the ways the Internet can help—and hurt—business.
How Can You Manage These Challenges?
Every challenge has myriad solutions. However, there is one corporate philosophy that can help you handle all kinds of complications:
Small businesses in America are experiencing exceptional rates of growth. In fact, this is one of the best times to own a small business. If you’re a small business owner or are considering starting your own business, the market may be primed to help you reach success. However, there are still a number of challenges you’ll likely face. Before you forge ahead, you should be aware of the issues that could trip you up. Here are five of the most common challenges you may encounter.
Lack of Funds
Nothing can hold a business back like money problems. This is even more true for small businesses. While most larger companies have enough cash flow to keep up with payroll and keep the lights on, small businesses are often in a less stable situation. If one big client fails to make a payment, your small business may not be able to cover its bills. There are plenty of tales of small business owners giving up their own salaries in order to pay their employees and vendors. And, sadly, there are plenty more stories of small businesses failing because they ran out of funds.
Lack of Time
Are you working on the business or in the business? For small business owners, the answer is often both. You are the one responsible for executing business plans and winning new business, but you might also be answering the phones, filing the paperwork, and dealing with vendors. The smaller your business, the more tasks you’re likely to have. This time crunch can be difficult to manage and can cause important matters to fall through the cracks.
Trouble Finding Good Employees
There are 30.2 million small businesses in the United States, accounting for 47.5% of all jobs.1 But that doesn’t mean finding qualified, hardworking employees is easy. In many instances, your small business’ benefits package won’t be able to compete with what large companies offer. Additionally, while large businesses can hire people for one specific task, you may need employees who can handle multiple tasks. You’re also likely to need people who have the personality necessary to succeed in a small business environment, where change is common. All of these factors can make finding the right employees challenging.
Difficulties Balancing Growth and Quality
It’s a common story: one day you’re celebrating landing a big client, and the next day you’re struggling to keep up with the new client’s needs. For small businesses, growth often comes with growing pains. In many instances, you have to make the choice between working long hours—and asking your staff to do the same—or finding ways to cut corners. Neither is a great solution, meaning that, ultimately, you will have to find a way to grow your business without hurting your business.
Ineffective Web Presence
Marketing, in general, can cause small businesses a number of problems. Advertising is expensive and word of mouth is slow-moving. The internet provides opportunities to find customers without breaking the bank, but many small businesses don’t do enough with their online presence. You probably know that you need a website, but is it SEO optimized? Does it utilize responsive design? Is it driving sales or is it nothing more than an online billboard? And your website is just one piece of your online presence. You also need to consider social media like Facebook and Twitter, and pay attention to review sites like Yelp where one dissatisfied customer can damage your reputation. Large companies have entire departments devoted to online activities, but small businesses often struggle to keep up with all the ways the Internet can help—and hurt—business.
How Can You Manage These Challenges?
Every challenge has myriad solutions. However, there is one corporate philosophy that can help you handle all kinds of complications:
"Never learn from your mistakes"
What?? Sounds counterintuitive, but it's not. Never learn from your mistakes...learn from the mistakes of those who have gone before you. With the right guidance, and the right resources, you can navigate through the minefield of errors so common among new business owners, and find your way to success without the painful lessons that others have learned before you. Pacific Capital Partners can be that guide and resource, from decades of experience helping businesses not just grow but thrive.
Owning a small business can be incredibly rewarding. But to make your small business a success, you need to be prepared for the challenges you’ll face. We can help you get to where you’re trying to go.
"Never learn from your mistakes"
What?? Sounds counterintuitive, but it's not. Never learn from your mistakes...learn from the mistakes of those who have gone before you. With the right guidance, and the right resources, you can navigate through the minefield of errors so common among new business owners, and find your way to success without the painful lessons that others have learned before you. Pacific Capital Partners can be that guide and resource, from decades of experience helping businesses not just grow but thrive.
Owning a small business can be incredibly rewarding. But to make your small business a success, you need to be prepared for the challenges you’ll face. We can help you get to where you’re trying to go.