Business and Law Consultancy Services

Sound Business and Legal Advice

You are not alone. Discover at least 7 shared small business challenges we all face. As a (very) small business owner, I find it more and more difficult to plan ahead and meet the financial challenges associated with running your own business. I have done some reading and, to my surprise, discovered that most small business owners suffer the same challenges and anxieties. Unpacking my basket of problems made me realise that I need to evaluate each challenge, address those I have control over, and seek advice on those not in my ability to solve. A problem shared is a problem halved. Contact me here: Trade and Legal Ltd

Small businesses in UK villages, towns, and cities face several shared key challenges in 2024/25:

Economic Uncertainty: Ongoing issues like Climate Change, Energy Crises, Flooding, Government Policy, Brexit and fluctuating global markets make it difficult for small businesses to plan ahead. Many are struggling with unstable supply chains, rising costs, and unpredictable demand, making it hard to operate smoothly

High Costs and Inflation: The increased cost of living and inflation is shrinking consumer spending, which hits local high street shops hard. At the same time, businesses themselves are facing higher costs for energy, rent, and wages

Access to Funding: Getting loans or investment can be a real headache for small businesses. Banks are often reluctant to provide loans, pushing many businesses to look for alternatives like crowdfunding or government schemes, which can be complex and time-consuming

Competition from Online Retail: High-street shops are competing against online giants that offer cheaper prices and greater convenience. This is particularly hard for businesses that rely on local foot traffic but can’t match the reach or efficiency of online platforms

Hiring and Retaining Talent: Small businesses often struggle to match the salaries and perks offered by larger companies. This makes it tough to hire and keep skilled workers, especially in a tight labour market

Regulatory Compliance: Keeping up with changing regulations—whether it’s around tax, health and safety, or environmental rules—can overwhelm small businesses, particularly those with limited staff or resources

Cash Flow Issues: Managing cash flow is a persistent problem, especially when payments are delayed or costs increase unexpectedly. It can be a challenge just to keep day-to-day operations going

Could Going Online Help?

Yes, moving online could help. E-commerce and digital marketing allow businesses to reach wider audiences and stay competitive. However, going digital isn’t a magic bullet. While it opens up new opportunities, it also comes with its own costs—like building and maintaining websites, managing logistics, and investing in cybersecurity

Would Becoming a Ltd Company Help?

Registering as a limited company (Ltd) can offer advantages, like reducing personal liability and making it easier to secure funding. However, it also comes with more regulatory burdens, such as stricter reporting requirements and more complex tax obligations. While it can protect personal assets, it won’t automatically solve operational challenges (Ppsstt…we can help with that!)

Ultimately, a combination of going digital and formalising as a Ltd Company could help tackle some of the hurdles, but they both require investment and careful planning.