4 Challenges Faced By Small Business Owners.
Small business owners have to face many challenges in starting a business and in the first few years of operation. According to the U.S. Bureau of Labor Statistics, about 20% of small businesses fail by the end of their first year. BY the end of their 5th year, 50% fails and by the 10th year that number rises to 80%.
With survival rates it is easy to understand that there are many challenges face by small business owners. They have to face many problems like difficulty finding customer, generating leads, hiring the right people, funds management, etc.
1. Money Management
Money is the backbone of every business as if any business having good cash flow will grow big in little span of time. Also note that if you own a small business, chances are that you don’t have a extra money laying around to do whatever you wish to.
Try to use invoice software to check cash flow and your daily expenses. Also make your day books, sale books and balance sheets properly as these things can impress the financial institutions and you can get business loans or CCs as a working capital.
2. Hiring New Employees
Hiring new employees is one of the biggest challenges for small business owners. It is a very complex process as the cost of onboarding is quite high. Also it is also very difficult to retain man power in small businesses.
You can’t run the business alone, so it is better to find the right people who actually excited about your company. And try to give them ownership so that they can take responsibilities not as an employee but as a owner.
3. Finding Customers
Finding customers is a concerning point for all business owners. Even the most successful companies like Apple, Toyota, McDonald’s, etc don’t just sit around waiting for the leads to come in.
Firstly make a list of your targeted customers and then note what they do, what they like and what type of product they are expecting. Then work according to demand and spread the word to the right customer.
4. Staying Motivated
In business, there is a daily new problems and sometimes these things pull your motivation down. Problems like low cash flow, low sales, low profits, tax issues, etc make you negative. Small business owners facing this problem on daily basis.
Spend time on reading motivational books, watch motivational movies or listen inspiring tapes. As when you go through stories of successful business people , you will get motivation as how they became successful against all odds.
As a small business owner, one must aware that these are basic challenges face by all business owners. How you respond to these challenges will change the “game”. Always remember that these challenges are just challenges and people do overcome them.