Overcoming these 6 common challenges when you’re an online business owner

Running your own business can be very satisfying and rewarding. But, it's never smooth sailing—there will always be setbacks that can knock you off course. In today's episode, I share 6 of the most common challenges I've experienced in business and my strategies and tips to overcome them.

– How persevering through the slow income growth phase of your business is easier with these 4 steps.
– Why growing your audience is a slow burn and the 2 options you could consider to speed up this growth.
– Why understanding that business ownership is a financial rollercoaster will help you to deal with those unexpected burdens (like tax bills!).
– The importance of trademarking your products to protect them from digital “copy cats”.
– Why prioritising YOU is super important to avoid burn out and how to overcome it when you do.

Running an online business is a rewarding but challenging endeavour. As a business owner, you will inevitably face setbacks and obstacles along your journey. Whether you're just starting or have been in the game for a while, these challenges can feel overwhelming. But don't worry; you're not alone. In this post, we'll discuss six common challenges online business owners face and how to overcome them.

1. Slow Income Growth

One of the most frustrating aspects of running a business is slow income growth. You're putting in the effort, doing everything you think is right, yet your income isn't increasing as expected. This situation is normal, as growing a business takes time. However, when you're constantly bombarded with stories of overnight successes, it can be discouraging.

How to Overcome Slow Income Growth:

1. Stay Focused on Your Vision: Remember why you started your business in the first place. Was it for freedom, flexibility, or pursuing your passion? Whatever it was, reconnect with that vision when you feel like giving up.
2. Identify the Source: Determine whether slow income growth results from insufficient audience reach or low conversion rates. Often, it's not about reaching more people but about converting your audience into paying customers.
3. Strategic Offer Suite: Consider revising your offer suite to align with your customers' needs and encourage repeat business. This approach can increase the lifetime value of your clients.
4. Budget Wisely: Minimise your operating and lifestyle expenses. By cutting costs, you can reinvest in areas that will help grow your business, such as marketing or sales strategy.

2. Slow Audience Growth

While slow income growth and slow audience growth are related, they're not the same. Growing your audience can feel painstakingly slow, especially with organic methods.

How to Speed Up Audience Growth:

1. Paid Advertising: Once you have a clear message and proven sales process, consider investing in paid advertising to reach a larger audience.
2. Partnerships and Collaborations: Get in front of other people's audiences through collaborations, such as podcast interviews, guest blogging, or speaking engagements. These partnerships can drive more traffic to your business.

3. Running Out of Cash

Even if your business is technically profitable, cash flow issues can arise if you haven't retained enough cash to cover expenses like taxes or operational costs.

How to Manage Cash Flow:

1. Budget for Cash Flow: Use a cash flow forecasting spreadsheet to predict your inflows and outflows. Regular updates will help you prepare for upcoming expenses and avoid running out of cash.
2. Understand the Difference Between Profit and Cash: Profit and cash flow are not the same. While your business may be profitable, it doesn't guarantee positive cash flow. Educate yourself on these concepts to manage your finances effectively.

4. Unexpected Tax Bills

Paying taxes is a part of running a business, and unexpected tax bills can catch you off guard, especially if you've already spent the money.

How to Prepare for Tax Bills:

1. Consult an Accountant: Make sure you have a good accountant to help you anticipate your tax liabilities. Regular consultations will give you a better idea of what to expect.
2. Set Aside Funds: Allocate a percentage of each sale to a separate tax account. This money isn't yours to spend; it belongs to the tax department.
3. Read “Profit First” by Mike Michalowicz: This book offers excellent advice on managing your finances and ensuring you're prepared for tax season.

5. Copycats and Impersonators

Dealing with copycats and impersonators is frustrating. Whether someone is impersonating you on social media or copying your intellectual property, it's essential to protect your brand.

How to Protect Your Intellectual Property:

1. Trademark Your Brand Names: If your business name or product name holds significant value, consider trademarking them to prevent others from using them.
2. Legal Action: If someone copies your content, know your rights under copyright law. Consult a lawyer if necessary.
3. Preventive Measures: Invest in resources like Riz from Foundd Legal's Copycat Kit to be prepared for potential copycat issues.

6. Burnout

Burnout is a common issue for business owners, ranging from creative lulls to severe exhaustion.

How to Prevent and Overcome Burnout:

1. Prioritise Rest: Preventing burnout involves resting, exercising, and connecting with loved ones. Avoid living off caffeine and adrenaline, which can lead to exhaustion.
2. Cut Back When Necessary: If you feel burnt out, take time off and cut back on your workload. Hire an assistant or delegate tasks to create more space for rest and rejuvenation.
3. Engage in Activities You Enjoy: Schedule activities you love that aren't work-related. Whether it's a hobby or spending time with friends, make sure you're nurturing your well-being.

Running an online business is filled with challenges, but each setback is an opportunity for growth and learning. By addressing these six common challenges head-on, you'll be better equipped to navigate the ups and downs of entrepreneurship. Remember, you're not alone in this journey. Stay focused, keep learning, and know these challenges will pass, leaving you stronger and more resilient.

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