Small Business

Diversity has become an even more relevant topic when discussing the development of a work team. Many young business owners are busy playing catch-up because amplifying diverse voices wasn’t prioritized until recently.  Diversity represents differences in race, religion and gender identity. Differences in those pillars of identity promote diversity. However, Sciencedirect stated that diversity also means a distinction in age, physical abilities, cultural background, language and sexual orientation.  Harvard Business Review adds onto what is considered workforce diversity by including employees who have diverse career paths, industry backgrounds and education levels.  Workforce diversity is an essential business strategy.  In fact, it increases respectful employee dynamics by empowering underrepresented employees and appreciating different talents and abilities.  In a space where diverse employees excel, diverse clientele is exposed to different talents and skills. This elevates their experience from the moment they walk through the door.  An example of this is the ability to speak different languages. Sciencedirect confirms that when multicultural employees speak different languages and have different cultural understandings, they can better connect with customers. They do so by eliminating language barriers.  These critical skills extend to operations behind the scenes. Diverse workforces easily become knowledgeable in problem-solving due to the chance of sharing alternative perceptions and interpretations of an issue. In meetings or team gatherings, diverse workforces can voice additions to day-to-day procedures or company policies to better accommodate the needs of marginalized customers. Such improvements in business operations benefit businesses long term. Harvard Business Review found that businesses that welcomed diversity in their workforce were more innovative. In fact, businesses with above-average diversity levels had 19 per cent higher innovation revenues.  Innovation revenue refers to the revenue that results from new practices, procedures or products. Examples include changes in packaging, using digital technology and hiring a diverse team. Employing a diverse workforce is a profitable and ethical business practice.  Yet, only 40 per cent of Canadian businesses in 2022 have implemented diversity and inclusion policies. That number is five per cent higher than the 2020 statistic. However, more than half of the country’s businesses are still missing out on a profitable way to increase productivity. This may be due to businesses being influenced by possible collaborative issues. Sciencedirect says that although diverse employees can bring different ideas and perceptions to the table, this may cause disagreements with colleagues or management. However, conflict resolution in this scenario requires looking for similarities, respecting differences and listening to find a middle ground.  Consistently implementing ethics regarding diversity and inclusion is necessary. In fact, workplace discrimination against gender, race and religion are often to blame in collaborative conflicts with diverse employees.  This implementation can be easier for small businesses. They typically don’t have a large number of employees. Regardless, this quality is an advantage when it comes to enforcing diversity in the workplace.  Firstly, management can ensure diverse voices are being heard by approaching marginalized or underrepresented employees. This allows them to get their input on business decisions. It ensures that they are not overshadowed by other employees’ voices. The ability to have these important conversations are easier with a smaller team.  Furthermore, smaller businesses need to make an effort to put marginalized employees on track to management positions. This can be done through the development of leadership programs or promotions.  For small businesses in the hiring process, it is essential to let marginalized workers know they are welcome and wanted. That should be done from as early as the job description. This can be achieved through inclusive language, which uses gender-neutral terms and gets rid of  discriminatory vocabulary.  Ensuring visible minorities are welcomed within the workforce of a small business requires action. For one, owners and recruiters should push existing employees to refer minorities for available positions.  Lastly, once small businesses establish a diverse team, managers and owners need to keep up with religious and cultural holidays. Those in charge can plan how to celebrate such holidays in the workplace and avoid scheduling meetings on such days.  Achieving a diverse workforce should not work like a checklist. Workforce diversity is beneficial for business but it is also about providing underrepresented and marginalized individuals with the opportunity to feel supported in professional settings. 

It’s no secret that small businesses affect the economy. In fact, the Business Development Bank of Canada (BDC) released statistics on it.  According to the BDC, small- and medium-sized businesses alone contribute 54 per cent of Canada’s gross domestic product. They also account for 98 per cent of the country’s businesses, employing more than 8.4 million Canadians. But, when the roles are reversed, what effect does the economy have on small businesses? Many people looking to launch their startups may feel worried doing so when the economy is down. However, economic slowdowns don’t mean you have to press pause on your business plans. In fact, pursuing your small business in this economy has its upsides. Here’s why you shouldn’t let tough economic times discourage you from fulfilling your goals. Lower startup costs Despite assumptions, starting your business when the economy is down is often cheaper than doing so in a healthy market. Economic challenges of any kind are bound to impact most businesses.  But this can be beneficial for those just starting out. An economic slowdown allows you to take advantage of cheaper prices from suppliers and manufacturers, according to the BDC. You may also find that overhead costs are lower. This allows aspiring business owners to cover the costs of rent, advertisement and materials at a lower price. Saving money is important for a few reasons. For example, your business may not work out. If so, your overall loss won’t be as big as it would’ve been if you started during an economic boom.  Also, spending little in the early stages of your business leads to fewer concerns around profitability. Since you spent less, you won’t need to make as much money to support both you and your business. Less competition  People are more likely to start their businesses when the economy is doing well. This gives you the upper hand. With fewer looking to pursue startups, there’s no need to worry about new businesses leveraging the same position as you. Instead, you can focus your efforts on standing out against the established competition.  However, pre-existing businesses will be struggling far more than those just starting out. Those businesses face budget cuts, layoffs and possible shutdowns. Meanwhile, there’s plenty of room for new business owners to steal the spotlight. Layoffs allow you to recruit experienced employees, and customers of businesses that closed down will be searching for a replacement. As long as you’re dedicated and have a competitive edge or niche, you’re at an advantage. The market will improve The economy will bounce back. Times of economic hardship don’t last forever. When things improve, you’ll reap the benefits. Although you may face challenges or limitations when starting out, like stricter budgets or lower profits, they will eventually pass. Once they do, you will begin to see an increase in sales and overall revenue. Things will even out over time. When they do, the cost-efficiency of starting while the economy is down will pay off. Customer loyalty The customers you gain during this time are more likely to stick around. In fact, you can prove to your current clients that you are dependable and resilient when faced with sudden change. Doing so will make them more likely to stay loyal once the economy improves. While your competitors are struggling, you can attract potential clients. In times like these, people are looking to save money however they can. If your business can offer prospective clients more affordable options than your competitors, they’re more likely to stick around long-term. So, before putting away your business plans, remember it’s possible to find success during challenging economic times.

In the past year, Canadian employees have proved that their work performance remains unhindered when switching from the conference table to the comforts of home. Some say their productivity performance has improved while working remotely or within a hybrid model.  In 2021, Statistics Canada reported that 90 per cent of white-collar employee participants’ productivity remained unchanged while working from home. 58 per cent reported that they accomplished around the same amount of work as they would in the office.  Meanwhile, 32 per cent reported completing more work from home.  The hybrid model has gained popularity this year. Angus Reid Institute and the CBC conducted a survey. Through it, more than 50 per cent of employees shared that they would look for work elsewhere if they were required to work in the office full time. In a global survey by Cisco, 28,000 full-time employees with different career fields, ages and genders reported similar results. Overall, there was improvement in quality of well-being, relationships, work-life balance and personal confidence when working within a hybrid structure.  A preference for hybrid workspaces is emerging. But one in four businesses still aren’t confident about a future favouring hybrid models. What is a hybrid workspace? A hybrid workspace is a work structure that takes place half within a traditional office setting and half remotely. However, it can take on different forms that best suit the business’ demands. Some models are more flexible, allowing employees to come to the office on their own time. Others, however, enforce set office hours. This may be difficult for small businesses that cannot afford the right technology or time to accommodate their employees. But with the right structure and tools, small businesses can greatly benefit. Some advantages include cost savings on travel expenses and operating space and flexible work-life balance. It also allows the inclusion of diverse employees from those who live with disabilities to those outside the local area.  Remote-friendly model This model is the most flexible, allowing employees to choose their schedules based on their personal needs. Employees may also have an open option to return to the office when convenient. The easy access to a comfortable space at home tends to increase satisfaction and mental health. This can motivate workers to build close interpersonal relationships within the company.  Since 2021, Amazon has embraced the remote model and allowed corporate employees to use this structure indefinitely. Their options include  working in-office or at home, based on a team’s needs.  In an interview with Yahoo finance, CEO Andy Jassy said working remotely has proved beneficial for both employees and leaders. He added that it encourages businesses and companies of all sizes to adjust and “change how we operate” as technology continues to embrace a hybrid world. Office-centred model This model requires employees to work in-office most days but enables them to work remotely once or twice a week. Having face-to-face interaction often increases relationship-building and collaboration. Sharing a physical space can also lead to fewer feelings of loneliness and isolation. Google has implemented “collaboration days,” which involve three days at the office and two remote. The purpose is to keep a sense of flexibility while encouraging employees to build social capital. Google is the first to try creating a new hybrid structure based on executive Sundar Pichai’s hypothesis that “a flexible work model will lead to greater productivity, collaboration and well-being.”  Combination model The combination model facilitates a balance between remote and office work, either through fixed timing or the employee’s choice.  Some companies split up office return days by department to save office space. A few large rooms can be used for important meetings and other informal activities take place online. Managers can still stay in touch with team members face-to-face while saving money on transportation and office costs. Sean Woodroffe is a chief human resources officer at the investment organization TIAA. In an interview with CNBC, Woodroffe said switching between remote and onsite work are completely different interactions. Both can bring on different sets of issues but also, as he said, “bring on different types of opportunities.”  Woodroffe has already witnessed more engagement across various businesses resulting from employees gaining control over their schedules. He expects that combination hybrid models are here to stay. As technology develops to fit remote work, hybrid models seem promising. However, it is difficult to assess performance with fewer people at the office. This is only possible if the team feels a high sense of trust, equality and collaboration. That should be the case even while working from home. Without the right communication and tools to facilitate connection, small to large businesses alike put themselves at risk. Though still experimental, a long-term hybrid model for small businesses is not impossible. Formalizing clear goals and rules unique to the business and workers’ needs should have priority.  In addition, check-ins, support, helpful resources and events, both virtual and onsite, can build trust to improve productivity.  Taking on these challenges and embracing modes of engagement make for flexible businesses that can easily adapt to rapidly changing times.

When your business is just starting out, it can be tempting to appeal to as wide of an audience as possible. After all, reaching more people means gaining a larger pool of potential customers, right?  However, this also means it’s easier for your business to get lost in an oversaturated market. Instead, it may be beneficial to consider focusing your efforts on a more specific demographic. In other words—finding your business’ niche. What is a niche? A niche refers to a specialized area of a general market that a business undertakes. Say your business sells footwear. This is a very general market with countless other businesses already occupying it. Now, say you narrow this category down to boots or, even better, safety boots for construction workers. You’ve now found a focused niche within the broader category of just footwear.       What are the benefits? By finding a niche for your business, you have more time to focus on your specific market. That allows you to become a specialist in your chosen field. This makes your brand more appealing than other, more general companies. You are now able to gain loyal customers who trust what you have to offer.  In this way, your business also becomes more valuable to your customers. People are often willing to pay more for your services if they know yours are better than other companies. That said, you could make more as a specialist than you would as a general business.  Having a niche also focuses your efforts. When marketing, for example, you know exactly who your audience is and what appeals to them. That means you won’t waste time or resources trying to appeal to as many people as possible. The marketing process becomes more organized when you don’t have the entire world as your target audience.   Developing your niche  Keep in mind, there are several ways to go about this. The process will also often vary from business to business. Here are some general tips to get you started: Identify your general target audience. Start by figuring out the broader market you wish to enter. Then, begin looking for more specific communities within this demographic.  Find the sweet spot. It is ideal to target a demographic general enough to have a good number of potential customers. But it should also be specific enough that it is underrepresented within its broader market. This way, there will be fewer competitors.  Don’t go too niche. You still want your customer pool to be large enough to make a profit. Catering to a community that is too small with a product/service that needs to be purchased too often,  is risky. In fact, you risk exhausting your customer pool quickly even if those you serve are satisfied.  Make sure your target audience is accessible to you. In other words, don’t waste your efforts by building your business around a community you are unable to connect with.  Namely, how would you reach out to people living remotely off the coast of Japan while living in downtown Toronto? This example may be simplistic, but it highlights the importance of being reasonable when selecting your target audience.  Narrowing down your business with a niche can be intimidating. It can seem counterintuitive cutting off some potential customers in favour of others. However, developing a niche can also have many benefits and may even lead to greater income long term.