Challenges Small Businesses Struggle WithJan 23, 2019 | Newspaper
Small businesses face a number of key challenges or major problem areas. These challenges occur over and over again. Take a look at some of the issues a small business faces and learn how you can take definite action on them today!
Cash Flow of Small Business:
A small business has to worry about clients stalling payments, unexpected outgoings and outstanding bills. Most small businesses fail because of poor cash flow management. Optimism is critical for a new business, but that should not lead you to overestimate future sales volumes or engaging in impulse spending during the startup phase. To protect your business from cash flow issues, please have reserves in place equivalent to at least two months of operating expenses.
Fatigue of Small Business:
It is one of the most commonly overlooked challenges a small business faces. Long hours add pressure but embracing strategic delegation is not an easy task for any highly motivated individual. You need to identify business elements that do not need your expertise, invest in automation of simple functions and delegate tasks that are outside your skill set.
Customers of Small Business:
You need to find and retain profitable customers. Start by identifying your unique selling point and researching your customer base. Find out the characteristics of your existing best customers and any costs associated with particular customers. Have a clear view of their net value to you. Focus your energies on attracting new clients from your most profitable segment.
Employees of Small Business:
Employee buy-in is very important for a small business. Understand what employees want to boost employee engagement. Communicate clearly and be approachable to ensure employees are happy and productive. Foster a relaxed atmosphere where your staff will feel able to talk to you.
Overheads of Small Business:
Pay close attention to what customers actually want and provide products or services sharply tailored to suit. You can start by analysing your transactions and asking existing customers what they want. Adding value should not increase overheads for you, rather it should benefit both you and the customer.
Staying up to date with Small Business:
You need to keep yourself up to date. Allocate time to track competitors and undertake activities which help raise your awareness, like reading or writing a blog post. Go to sector conferences and exhibitions and you can get massive payback in terms of contacts and potential sales. Investigate becoming a speaker or positioning yourself as a thought leader among your peers.
Marketing Costs of Small Business
A limited marketing budget can make it difficult for you to reach your target audience. The solution is to create a dynamic marketing strategy with goals to increase visibility for your brand and generate quality leads. Base your activities according to your resources.
Problems are an everyday part of every business which you need to face with determination. There is no issue that cannot be solved with tenacity and forethought. Take time to understand the pain points you are feeling, and you will find that taking a step back and re-thinking your strategy will help you fix many of the challenges small businesses struggle with.