JoAnn Laing's Blog - All About Small Business

Small businesses today face intense financial pressure from multiple directions. Rising costs, unpredictable cash flow, and tighter credit standards can turn an otherwise healthy business into a constant struggle to stay afloat.

Rising costs and shrinking margins

Inflation and higher operating costs are pushing up expenses for rent, utilities, materials, and wages faster than many small businesses can safely raise prices. This squeezes profit margins and leaves little room for error. On top of that, customers may resist price increases, forcing owners to absorb costs or risk losing business.

To manage rising costs and protect margins, small businesses can:

• Review pricing regularly and make smaller, incremental increases instead of large, infrequent jumps.
• Analyze product and service profitability to phase out low-margin offerings and focus on the most profitable ones.
• Renegotiate contracts with landlords, vendors, and service providers or seek competitive bids.
• Invest in efficiency (automation, process improvements, or training) to reduce waste and labor hours.

Cash flow gaps and late payments

Many small businesses are profitable on paper but constantly short on cash. Long payment terms, late-paying customers, and mismatched timing between expenses and revenue create cash flow gaps. When cash is tight, owners may delay paying their own bills, stretch payroll, or rely heavily on personal funds.

To strengthen cash flow and reduce stress:

• Tighten credit policies: require deposits, partial prepayments, or shorter payment terms for new or high-risk customers.
• Offer small discounts for early payment and enforce late fees consistently.
• Use simple cash flow forecasting to anticipate shortfalls a few weeks or months ahead.
• Separate personal and business finances, and avoid plugging recurring gaps with personal credit cards.

Access to credit and rising interest rates

As lending standards tighten and interest rates rise, borrowing becomes more expensive and harder to obtain. Small businesses may be denied traditional bank loans or offered only high-cost credit, making it risky to finance growth, inventory, or equipment. Existing variable-rate debts can also become more burdensome as payments increase.

To navigate financing challenges more safely:

• Build and maintain strong financial records (accurate bookkeeping, up-to-date financial statements, and tax filings).
• Nurture relationships with local banks, credit unions, and community lenders before funding is urgently needed.
• Explore diverse financing options such as lines of credit, equipment financing, and government-backed programs rather than relying on a single source.
• Prioritize paying down the highest-interest debt first to free up cash and reduce risk.

Tax, compliance, and unexpected expenses

Taxes, regulatory changes, insurance premiums, and surprise expenses (equipment failure, legal issues, or sudden repairs) can strain limited budgets. Without planning, these costs can trigger a cascade of late fees, penalties, or emergency borrowing.

To reduce the impact of these financial shocks:

• Set aside a percentage of monthly revenue in separate reserve accounts for taxes and emergencies.
• Work with a qualified accountant or tax professional to optimize deductions and stay compliant.
• Review insurance coverage regularly to ensure key risks are covered without overpaying for unnecessary policies.
• Create a simple annual budget that anticipates major recurring costs and scheduled investments.

Owner burnout and underpricing

Many small business owners underpay themselves or underprice their products to win business or “be fair” to customers. Over time, this leads to burnout, resentment, and an unsustainable business model that cannot fund growth, hiring, or proper systems.

To address underpricing and owner strain:

• Benchmark prices against competitors and adjust to reflect the true value delivered, including expertise and service.
• Factor all costs into pricing: labor, overhead, materials, taxes, and a reasonable profit margin.
• Gradually shift away from unprofitable customers or projects that consistently drain time and cash.
• Build a basic compensation plan for the owner that is treated as a non-negotiable business expense.

Building financial resilience

No small business can eliminate financial pressure, but it can build resilience. Clear numbers, intentional pricing, and disciplined cash management turn guesswork into informed decisions. Over time, that stability becomes a competitive edge—allowing the business to survive downturns, invest in growth, and provide more security for the owner and employees.

Key practices that strengthen resilience include:

• Maintaining timely, accurate financial reports and reviewing them monthly.
• Keeping a modest emergency fund to cover at least one to three months of critical expenses.
• Planning ahead for big investments instead of reacting in crisis.
• Seeking advice from financial professionals, mentors, or peer groups to identify blind spots and opportunities.

With clear numbers, smart pricing, and steady cash habits, even today’s financial pressures can become a launchpad—helping your small business grow stronger, more resilient, and more profitable than ever.

Supply chain disruptions and unpredictable lead times can quietly strangle a small business. A single delayed shipment can stall production, drain cash, and damage customer trust.

Why disruptions hurt so much

Small businesses often run lean: low inventory, few backup suppliers, and limited logistics support. That efficiency becomes a weakness when ports clog, factories shut down, or carriers miss pickups.
With little bargaining power, smaller firms are usually last to get updates or priority, making planning workloads, staffing, and delivery dates a guessing game.

Ways to reduce risk

You cannot stop every disruption, but you can make them less painful by planning ahead. Focus on building options before you need them.

• Diversify key suppliers (ideally in different regions or using different routes).
• Identify “critical” items and hold slightly higher safety stock for those only.
• Negotiate realistic lead times and clear service expectations in writing.
• Share rough forecasts with suppliers so they can prepare capacity.

What to do when things slip

When a disruption hits, speed and clarity matter more than perfection. The goal is to contain the impact and preserve relationships.

• Quickly map which orders, customers, and products are affected.
• Explore partial shipments, substitutions, or temporary product tweaks.
• Inform customers early, give honest new timelines, and offer options.
• Prioritize high-value or time-sensitive orders first.

Improve after every disruption

Each disruption is data for making the next one less damaging. Treat it as a short post‑mortem, not just a fire drill.

• Ask what early warning signs were missed and how to catch them sooner.
• Adjust reorder points, safety stock, or supplier mix based on what happened.
• Document a simple “playbook” so the next disruption is handled faster.

Use simple tools for visibility

You do not need enterprise software to gain control; even basic systems help.

• Use inventory and order management tools instead of scattered spreadsheets.
• Track lead times by supplier to see who is consistently reliable.
• Choose logistics partners that provide real-time tracking and proactive updates.

When done well, supply chain resilience becomes a selling point: customers notice when you communicate clearly, keep promises more often than competitors, and recover quickly when the unexpected happens.

AI ethics and data transparency are crucial. With widespread AI adoption, customers expect authenticity and disclosure. Small businesses must be transparent about their use of AI and ensure generated content and data practices align with their brand’s values.

Ethics and transparency using AI should not only be a priority for small businesses, nor is it just a technology decision — but more importantly, it is a values and trust imperative.

It is tempting for small business owners to think of AI simply as a productivity hack — a quick win: faster marketing copy, automated customer service, better analytics. And certainly, AI offers undeniable advantages. But the stakes of “getting it wrong” are surprisingly high.

• Even a small misstep — a biased hiring recommendation, a data breach, or misleading AI-generated content — can damage trust that a small business spent years building. Without big budgets for PR or legal teams, recovering from a breach of trust is often more costly than the gains from automation.
• Many AI tools operate as “black boxes”: their decisions and outputs are not easily explainable — which leads to problems when customers or stakeholders ask why a decision was made. For small businesses especially, this opacity can undermine accountability.
• Customers today are increasingly aware and sensitive about data privacy and ethical use. If a business collects or uses personal data without clear consent — or misuses that data — it risks not only legal trouble but a loss of brand goodwill.

For small businesses wanting to adopt AI responsibly, here are a handful of guiding principles that should shape every decision.

• Transparency & Honesty — Be upfront about where and how AI is used. If you use a chatbot to interact with customers, or AI-generated copy for marketing, let people know. Do not hide AI behind vague statements; make it part of your brand narrative.
• Data Privacy & Minimalism — Collect only the data that is necessary; avoid hoarding sensitive or personal information if it is not essential. Use anonymization or minimal data retention where possible.
• Human Oversight & Accountability — Always have a human “in the loop.” AI can assist — but humans make final decisions. That way, you own the outcomes, and can correct or override AI mistakes.
• Fairness & Bias Awareness — Recognize that AI learns from data — if your data reflects societal bias or sampling bias, the AI can magnify those biases. Use diverse data sets, regularly audit outcomes, and be alert to unfair or discriminatory patterns.
• Governance & Clear Policies — Create simple AI-use policies tailored to your business’s size and needs. Even a one-page “acceptable use” policy — covering what data can be used, what tools are allowed, and how AI outputs are reviewed — is often enough for a small business.

Ensuring AI Aligns with Your Brand

• AI-generated content can be efficient, but it must reflect your authentic voice and values. This requires active management and oversight.
• Establish content guidelines: Before using AI to create marketing materials, customer communications, or social media posts, develop clear guidelines about tone, style, and messaging. What would you never say to a customer? What phrases or approaches feel authentically “you”? These boundaries guide AI usage.
• Implement review processes: AI-generated content should never go out without human review. Someone who understands your brand should check that AI outputs align with your values, do not contain errors, and genuinely serve your audience. This review process is not just about catching mistakes—it is about maintaining your authentic voice.
• Train AI on your values: most AI tools allow customization. Feed them examples of your best communications, your brand guidelines, and your customer service principles. The more you train AI on what makes your business unique, the better it will reflect your brand.

Looking Ahead

• AI technology will continue evolving, and so must your ethical practices. What’s transparent and appropriate today may need adjustment tomorrow. Build flexibility into your approach.
• Stay informed about AI developments, emerging regulations, and changing customer expectations. Join industry groups, follow trusted sources, and network with other small business owners navigating similar challenges.
• Remember that ethics and transparency are not obstacles to AI adoption, they are the foundation for sustainable, trusted AI integration. Small businesses that prioritize these values will build stronger customer relationships, have more engaged employees, and extra resilient operations.
• The businesses that thrive in the AI era will not necessarily be those with the most sophisticated technology. They will be those that use technology in ways that honor their values, respect their customers, and maintain the authentic relationships that have always been the heart of small business success.

Your approach to AI ethics and transparency is an opportunity to demonstrate what makes your business special. Use it well, and AI becomes not just a tool for efficiency, but a way to deepen trust and strengthen the connections that matter most.

Your marketplace is rapidly changing. You sense it daily—from shifting social media trends to evolving customer expectations.  

Verifying transactions used to mean a card machine and a cash register. Today, that’s outdated—and risky. Customers are savvy and connected. To keep up, diversify payment options. It’s a strategic step to help your business thrive.

Why are more choices better? It is all about the experience.      

Recall your last online purchase or most recent trip to a local shop. How did you pay? Chances are, you reached for the option that was most convenient for you at that moment. Maybe it was your phone, a quick tap-to-pay transaction, or maybe it was a digital wallet you already had set up. You chose the method most convenient for your financial situation.  It is the same for your customers; the payment experience is the last impression they have of your company. Offering a variety of secure payment methods, from traditional credit cards to modern digital wallets like Apple Pay and Google Pay, removes a major source of friction. This convenience not just prevents lost sales; it builds loyalty and shows that you understand and value their needs.

There is a quiet shift away from cash and what it means for you.

The world is steadily moving towards a cashless future. For small businesses, this is not a threat but an opportunity. Digital payments are not just about speed; they offer enhanced security through encryption and tokenization, which protects both you and your customers from fraud. This added layer of trust is invaluable. What’s more, digital transactions simplify your back-end operations. Automated payments and electronic invoicing reduce the time you spend on manual bookkeeping and reconciliation, freeing up precious time and resources you can invest back into your business.

More than just convenience: the impact on your bottom line.

Beyond improving customer experience and security, payment diversification directly impacts your cash flow. Different payment methods settle at different times. Some, like digital wallets or bank transfers, can offer quicker access to funds than traditional credit cards. This steady, predictable flow of money is the lifeblood of a small business. It can alleviate the stress of making timely payments, cover unexpected expenses, and allow you to invest in growth opportunities. Relying on a single payment method can be risky; a system outage for one provider can paralyze your checkout process. A diverse set of options ensures you always have a functioning way for customers to pay.

Tailoring your payment strategy to your customer.

The right payment mix is not a one-size-fits-all solution. It requires a bit of detective work. Consider who your customers are. Are they a younger, tech-savvy demographic who prefers mobile wallets and “Buy Now, Pay Later” (BNPL) options? Or perhaps you cater to an older audience more comfortable with traditional card payments or even checks for larger invoices. Look at their shopping habits—do they primarily make small, in-person purchases that are perfect for a quick tap-to-pay, or larger online orders that might benefit from installment plans? The answers will guide your strategy and help you choose a platform that is easy to use for both you and your customers.

Taking the first step does not need to be a giant leap.

Modernizing your payment infrastructure can feel daunting, but it does not have to be a major overhaul. Many flexible and integrated payment platforms exist today. They make it easy to adopt new technologies, from mobile point-of-sale (POS) systems for pop-up markets to simple online payment links for invoicing. The key is to start small and choose solutions that simplify your life while delighting your customers.

Looking ahead to a smoother, more resilient future.

Ultimately, payment diversification is about building a more flexible and resilient business. It is about more than just transactions; it is about building trust, enhancing the customer experience, and securing a healthier, more predictable financial future for your small business. By staying ahead of payment trends and offering the right mix of options, you ensure your business remains adaptable and competitive, ready to serve your customers seamlessly, no matter how they choose to pay.