The Five Biggest Challenges Facing Small Business
Starting a business is no small achievement. Maintaining a business is an even bigger accomplishment. It’s important to go into any business venture with your eyes wide open. In this article we address the five of the biggest challenges you will face in small business.
1. Money Management
Cash flow is always a concern for small businesses. The lag time between receiving payments and meeting ongoing expenses can place a business under real pressure.
Before starting a business, it’s advisable to have enough money saved to keep you afloat for at least two years. This will help you when cash flow is lean, especially during the start-up phase.
There are many opportunities for apps and software to give business owners a more comprehensive view and guidance around their financial health.
Furthermore, take advantage of the numerous apps and software that are on the market that can assist with the financial health of your business.
2. Getting (and keeping) clients
It goes without saying, businesses need clients. Relationships and word of mouth is obviously the best place to start. Get out there and hustle. Never underestimate the power of old fashioned networking.
“When you network you develop a list of resources that you can share with others. This increases your value to those prospects and clients you deal with.” ― Diane Helbig
3. Founder dependence
Founder dependence is really common. The vast majority of business owners find it challenging to let go of responsibilities and decisions as their businesses grow.
Founders are reluctant to hand over control to their employees and partners because it requires compromise of quality (at first). It takes time for another person to get a handle on a particular responsibility, but in the long term it’s worth it as it allows the founder to focus on taking frontiers.
Burnout, first cousin of founder dependence. It’s tempting to be across it all, do every little thing yourself, after all it’s cheaper and seemingly more effective. However, doing it all yourself can only ever be sustained in the short term. Before long you’ll hit burnout. You will become fatigued, disorganised, irritable and prone to making mistakes.
Business owners must get good at the art of balancing — delegating tasks, remembering to exercise, regular rest, eating right, taking breaks & enjoying other aspects of life.
5. Staying Fresh
Be careful not to get so bogged down in the daily grind that you lose your edge. Finding the time to think big, access creativity, research competitors and invest in personal development often gets pushed at the bottom of the pile.
Try and lock away at least one hour a week to grab a coffee and quite place to dream and innovate.
It’s important to schedule in blocks of time to attend sector training, conferences or exhibitions.