Tag: Entrepreneur Advice

What Small Businesses in Trinidad and Tobago Should Be Concerned About Right Now

Posted on by Cherise

What Small Businesses in Trinidad and Tobago Should Be Concerned About Right Now

Running a small business in Trinidad and Tobago has never been easy, but 2025 has brought a unique mix of economic, political, and social shifts that are making the environment even more challenging. While the entrepreneurial spirit remains strong across the country, small businesses need to approach the next 12 to 18 months with sharper awareness, stronger risk management, and more adaptive thinking. As an economist watching regional trends closely, here’s what I believe every small business owner in Trinidad and Tobago should be paying attention to right now.

Foreign Exchange Scarcity and Cost Pressures

One of the most immediate and frustrating realities for small businesses is the ongoing shortage of foreign exchange. Accessing U.S. dollars and other foreign currencies is increasingly difficult, with many businesses waiting weeks or months for allocations. Banks actually have businesses on a waiting list, and not just for U.S. dollars, but even Euros as well. This delay forces some to resort to the parallel market, where exchange rates are significantly higher, eroding already thin profit margins.

For businesses that rely on imported goods, raw materials, or equipment, this poses a serious risk. Cost planning becomes unpredictable, pricing strategies are harder to maintain, and in some cases, operations can be disrupted entirely. Companies should be exploring alternative sourcing options, negotiating more flexible supplier terms, or holding higher inventory levels if cash flow allows.

Energy Dependence and Macroeconomic Volatility

Trinidad and Tobago’s economy remains heavily tied to the energy sector. Oil, gas, and petrochemicals still account for a large share of GDP and export earnings. While the sector continues to generate revenue, it also exposes the country to external shocks. Fluctuations in global energy prices, production disruptions, or changes in global demand can all ripple into slower economic growth, tighter public finances, and weaker domestic demand.

For small businesses, this means heightened uncertainty. Government spending, consumer spending power, and business confidence are all linked to the fortunes of the energy sector. The pace of economic diversification remains slow, so businesses should anticipate cyclical ups and downs and plan accordingly.

Bureaucracy, Regulation, and Business Friction

Despite efforts to improve the business environment, regulatory delays, bureaucratic red tape, and inconsistent enforcement continue to frustrate small business owners. Licensing, permits, and tax compliance processes remain slow and often unpredictable. Legal disputes can take years to resolve, and government procurement processes are still viewed as opaque and overly complex.

This environment raises costs, lengthens lead times, and makes growth planning more difficult. Small businesses should build realistic timeframes into their operations, ensure they are fully compliant, and consider collaborating with business associations to advocate for regulatory reform.

Inflation, Consumer Spending, and Cost of Living Pressures

Inflation remains a real concern, especially when combined with foreign exchange challenges. Even with relatively moderate headline inflation, the cost of imported goods continues to climb. At the same time, rising food prices and cost-of-living pressures are eating into household budgets.

For many consumers, non-essential spending is the first to go. Businesses in retail, services, and lifestyle sectors may feel the pinch as demand softens. To stay resilient, small businesses should focus on value-driven offerings, flexible pricing strategies, and products or services that remain relevant even in tighter economic conditions.

Financing Constraints and Higher Credit Risk

Access to finance has always been a challenge for small businesses, and the current environment may tighten lending conditions further. Banks are likely to remain cautious, especially with weaker consumer demand and slower economic growth. For entrepreneurs without strong collateral or a solid credit history, accessing loans for growth or even working capital can be difficult.

Now is the time to strengthen financial records, improve cash flow management, and explore alternative financing models such as supplier credit, co-operative lending, or investment partnerships.

Policy Shifts and Fiscal Pressures

The recent change in government introduces another layer of uncertainty. Policy priorities, tax measures, and regulatory approaches could all shift as the new administration seeks to address fiscal pressures and social demands. With public debt rising and revenue challenges persisting, there is a real possibility of new taxes, reduced subsidies, or increased enforcement.

Small businesses must stay alert to policy announcements, budget statements, and legislative changes. Being proactive rather than reactive can help you adjust your business model ahead of regulatory changes rather than scrambling after the fact.

Crime, Security, and Social Instability

Rising crime rates continue to affect both the cost and safety of doing business. Security systems, insurance premiums, and operational risks all add to the expense of running a small enterprise. Beyond that, protests linked to economic frustration or service delivery can also disrupt transportation, supply chains, and customer traffic.

Factoring security into your cost structure and continuity planning is no longer optional. It’s essential!

Climate Vulnerability and Infrastructure Gaps

Finally, climate-related risks and infrastructure limitations should not be ignored. Severe weather events, flooding, and drainage issues can disrupt operations or damage assets, particularly for businesses in manufacturing, logistics, or retail. Weak infrastructure, such as inadequate roads or unreliable utilities, also adds hidden costs.

Businesses should assess their physical vulnerabilities, insure critical assets, and develop contingency plans for disruptions.

What Small Businesses Can Do Now

While these challenges are significant, they’re not insurmountable. Small businesses that adapt early and plan strategically can still thrive. Here are a few practical steps:

  • Conduct stress tests on your cash flow to see how you’d manage under cost increases, supply delays, or reduced sales.
  • Diversify your revenue streams to avoid relying too heavily on one market or product.
  • Build local supplier relationships and explore nearshore sourcing to reduce foreign exchange exposure.
  • Manage debt conservatively and avoid overleveraging in uncertain times.
  • Monitor government policy closely and adjust your business plans quickly when changes occur.
  • Strengthen collaboration with industry associations to amplify your voice on policy issues.

The road ahead for small businesses in Trinidad and Tobago is not without obstacles, but it’s also full of opportunity for those who are agile, informed, and prepared. The current state of affairs demands more than just optimism; it calls for strategic action, sound financial management, and a deep understanding of the forces shaping the economy. With the right approach, small businesses can continue to be the engine of growth and innovation that the country needs.

Did You Get Paid Yet?

Posted on by Cherise

Pay Yourself as an Entrepreneur!

Let’s get honest:
Too many small business owners are making sales but not taking home a cent for themselves. They’re covering all expenses: paying rent, covering suppliers and even spending on Facebook ads. But when it’s all said and done, they’re left empty. You’ve got to pay yourself as an entrepreneur!

What no one tells you is this:

If you don’t build your business in a way to pay yourself, your business will never truly work for you. And eventually, you’ll burn out, be frustrated and financially stressed, wondering where all the money went.

But how can you pay yourself when sales are low or inconsistent?

Let’s break this down. Here are some ways The Timely Entrepreneur worked out:

Shift Your Mindset First

Stop treating your salary as a reward. A salary is not something you earn only if things go well. It’s a non-negotiable business expense just like internet bills, inventory or accounting fees. So, if your business has a monthly operating budget, your pay must be included in it even if it’s small. If it’s not in the budget, then you’ve built your business model wrong!

Pay Yourself a Percentage, not a Fixed Amount

When revenue is low or inconsistent, we understand that a fixed salary can be stressful. Instead, pay yourself a percentage of net revenue or profit.

For Example: If your business earns $8,000 this month, and your fixed expenses are $5,000, you’re left with $3,000.
Choose a percentage, let’s say, 30% of net profit and pay yourself $900.
This leaves room for reinvestment while still honouring your role in the business.

Pro tip: Choose a percentage that aligns with your goals (10% if you’re reinvesting heavily, 30–50% if it’s your main income).

But what if the business owns less than $5000 TT per month? How can one pay one’s self a salary from that?

Now that’s a very real situation and one that many small businesses face.

If your business earns less than $5,000 TT per month, you can still pay yourself a salary, but it requires intentional structure, discipline, and understanding of your business priorities.

Here’s how it can be done realistically:

Shift from “Salary” to “Owner’s Draw” Temporarily – Open a Separate Business Account & “Owner Pay” Account

Whether you’re a sole trader, company or other business structure, set up 2 accounts:

  • Business Account for all income and expenses
  • Owner Pay Account where your salary is transferred monthly or biweekly

Why? Because when all your business money is mixed with personal expenses, it’s easy to “borrow” from yourself and lose track. This system helps build discipline.

Instead of thinking in terms of a formal salary (like in a job), think of it as an owner’s draw – a small, planned amount you take out every week or month from what’s available after expenses.

Example:
If you earn $4,800 TT/month and your bare minimum business expenses (inventory, data, delivery, etc.) are $3,000:
→ That leaves you with $1,800 TT.
→ Decide to give yourself a set draw of maybe $1,000, and keep the remaining $800 for savings or reinvestment.

If you use the percentage rule to stay consistent, simply choose a fixed percentage, no matter how small. 10%–20% of total revenue is a good place to start. If your sales fluctuate:

“This month I made $3,500, I’ll still pay myself 15%, which is $525. Next month might be higher or lower, but stay consistent in percentage, not amount.”

This teaches you to think like a disciplined business owner, even at low-income levels.

Build Your Pay into Your Pricing

Ask yourself: “Is my current pricing too low to ever support me?”

If your profit per sale is only $10 or $20, you’ll need to sell 100+ items per month just to pay yourself. That’s not sustainable.

Even when you’re starting small, build your pay into your cost formula:

Selling Price = Cost of Product + Expenses + Your Pay + Profit Margin

If you pay yourself just $100 per week now, design your pricing around that goal.

If you can’t afford to pay yourself based on your current pricing, maybe you’re undercharging.

  • Are your prices based on actual cost + value?
  • Are you accounting for your labour, creativity, and time?

Your salary must be a line item in your cost structure.
Even if you’re not a limited company, you are still the engine behind it all. Don’t price yourself out of your own business.

Use the Profit First Model (Simplified)

Consider this simplified system:

Every time you get paid:

  • 50% → business expenses
  • 30% → owner salary
  • 10% → taxes
  • 10% → savings/reinvestment

Adjust based on your stage, but the idea is to put money where it matters most — not where it simply disappears.

Manage Personal Expenses with Intention

Yes, this may mean that you have to cut personal costs to make it work. This part is tough, but necessary. If you are drawing $1,000–$1,500 TT/month from the business, then your personal expenses must be minimal. Your personal budget has to reflect that reality.

This might mean:

  • Delaying luxuries
  • Cutting unnecessary subscriptions
  • Getting creative with meals and transportation
  • Staying with family while you build

This sacrifice will just be temporary, don’t worry. Discipline now creates freedom later.

Set a Minimum Survival Salary

Calculate what’s the least you need to survive personally each month (food, transport, phone credit, etc.). Let’s say it’s $1,200 TT.

If your business can’t make room for at least that, then:

  • You either need to increase sales
  • Or reduce business costs
  • Or diversify income (side hustle, part-time work, etc.)

Consider Paying Weekly, Not Monthly

It’s often easier to manage small amounts weekly. For Example: If you only earn $4,000 TT/month, pay yourself $250–$300/week consistently. It feels more manageable and ensures you’re not always “waiting on month-end” to eat or live.

Track EVERYTHING.

The truth is in the numbers. Track:

  • Every dollar you earn
  • Every expense
  • What you pay yourself
  • What’s left behind

This builds self-awareness and helps you see what’s realistic and where changes are needed.

If your business can pay everyone and everything else but not you, it’s time to re-evaluate.

As Entrepreneurs, we need to hold ourselves accountable for what goes on in our businesses. We need to develop discipline in our spending, in our pricing, and in how we manage our most liquid asset, cash, because if we keep building businesses that starve the builder, we’re only building resentment, and that’s not why you started your business. You don’t wait to start paying yourself after your business gets big. You pay yourself so that your business has something to grow you into.

Have you started paying yourself yet, or are you still trying to figure it out? Check out our Business in Trouble Sessions and reach out to us for all your business needs.

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