5 challenges small businesses in Charlotte face

With Charlotte’s rapid growth, small businesses are popping up all the time – everything from breweries to boutiques. These are businesses that keep Charlotte interesting. They give us our own unique identity. Not to mention they help stimulate our local economy.

But owning a small business isn’t a cake walk. There are challenges along the way. To outline some of those challenges, I talked with small business expert, Beth Hoving.

Beth leads a small business banking team at Bank of America, where she’s worked for the past 19 years (she knows her stuff, y’all). Her role at BofA means she’s gets tons of insight into Charlotte’s world of small businesses. And after talking with her, I’ve got mad respect for what these small business owners do.

Not sure what makes owning a small business so tough? Here are a few of the challenges:

(1) It’s an election year

You can expect three things during an election year: annoying Facebook posts, hilarious SNL sketches and lots of uncertainty. Will taxes get raised? What’s going to happen with healthcare? The same questions you ask yourself are ones that small business owners ask themselves.

“Anytime there’s an election year you see drops in confidence in the national and local economy,” says Beth. Small businesses typically try to play it safe until they see how it all shakes out.

In Bank of America’s Spring 2016 Small Business Owners’ Report, the 2016 election is cited as a top concern nationwide. However, in speaking with Charlotte business owners, Beth says she hears a lot of optimism despite the 2016 election. Why? Beth notes the city’s population growth and startup success as two big reasons.

(2) Finances are tough to manage

From managing cash flow to finding an effective way to keep up with expenses, it doesn’t take long for small business finances to get complicated. Making mistakes can be costly, and inefficient payment processes can be a major headache.

That’s where Beth’s team at BofA comes in. “We can go in and help these businesses streamline everything,” she says. “It’s all about simplification.”

Small business owners Kara Deir and Andrea Edwards have worked with Bank of America from the beginning. Located in the Shops at Piper Glen, Kara and Andrea own Olive This!, an extra virgin olive oil and balsamic tasting store. “Deana Gear has been our small business banker and she has been there every step of the way for us,” says Kara. “She helped us navigate the various choices we had for accounts as well as payment processing services.”

(3) Great talent is hard to find (and harder to retain)

Having a solid team is vital to a small business’s success. That means it’s crucial to attract high quality talent. Beth says this is one of the most common challenges she sees small businesses in Charlotte facing.

Sometimes the key to solving this problem is simply thinking about what type of people you’re looking for. “We work with a staffing company that was trying to attract millennials,” says Beth. “To get the right people, they made their office more attractive by adding things millennials might like, such as a basketball hoop.” Creating a more fun environment can also help with retention.

(4) They’ve got to compete with the big guys

There are a lot of awesome large companies in Charlotte, which is great. But sometimes it’s not so great for small businesses that have to compete with them, especially when it comes to talent.

“People are attracted to the benefits offered by these bigger companies,” says Beth. “Small businesses can offer benefits too.” In fact, her teammates in Merrill Edge help small businesses set up 401ks and retirement plans.

(5) Successful marketing isn’t easy

From social media campaigns to designing an effective website, the digital component is an important piece of the puzzle – and it’s not easy.

“One of our continued challenges is in the area of marketing,” says Kara Deir, co-owner of Olive This!. “Given how quickly technology is changing, the new ideas and strategies are constantly put in front of you.  All of these marketing ideas cost money and there is never a clear idea of what return you will see on any potential marketing investment.”

So to market their business Kara and Andrea have focused on donating to local nonprofit events. It not only helps them get the word out about Olive This! but also supports great local causes. “Nonprofits and locally owned small business face many of the same challenges, and we believe supporting them is a wonderful way to market ourselves,” says Kara.

The bottom line? Think outside of the box and figure out what makes the most sense for your business. There’s no one way to market something.

 (Note: This content was co-created with Bank of America.)