Small business owners are under a constant threat of either going under or getting wiped off by the bigger, more established competitors. However, there are a myriad of other problems that plague small businesses and their owners, with most of them being only a smidge difficult to overcome. However, as it is with small businesses, even small problems or complications can compound and cause bigger problems, which can eventually lead to the business and the owner going bust. Recognising and realising the problem is the first step towards resolving the lacunae and therefore, here are the 6 biggest problems facing small businesses and their simple but effective solutions.
While this is only a limited enumeration of the issues that a small business can face, they are in no manner overwhelming or unresolvable. Every problem has a solution; all it requires on the owner’s part is dedication, steadfastness and being headstrong. Once you’re past all that, its smooth sailing and big money onwards.
The Biggest Problems Facing Small Businesses
Being a small business owner is no walk in the park. It takes sheer dedication, willpower and ingenuity to keep it afloat and profitable. Unfortunately, problems can arise at any stage of the evolution of the business and when the time comes for small businesses, well, you’re on for a rough ride because problems can compound rapidly and your status as a small business does not help one bit.
- No proper marketing: A small business struggles most with marketing and advertisement budgeting or even the lack of it. Marketing is the main factor of driving in new business, new customers. But marketing is also pretty expensive and can burn a pretty deep hole in your pocket. So, while your revenue cannot allow for a hefty inclusion of marketing budgets, it is essentially stunting the overall growth of the business by not allowing for the exposure and the establishment of new sales channels. Its kind of a Catch-22 situation: your pocket does not allow for marketing, but by not including marketing, you’re not allowing your business to grow, thereby keeping you in the financial zone where you can’t allocate money for advertising. This vicious circle goes on and on until the business dwindles down to bankruptcy. The simple solution is this: start with unconventional marketing methods that suit your limited budget and grow a local following. Plan and earmark an amount to be used for a full-fledged campaign once your local following earns you enough to go truly national or international. This method will take time and patience but the rewards are huge.
- Building, retaining new customers: The key to new business is repeat business. While this was a dialogue in movie, it speaks volumes on business-growing 101. The fact is, that new customers and recurring customers are the lifeblood of any small business. Its how the establishment thrives. Unfortunately, new customers only come in after a good amount of marketing, thus robbing your small business the fighting chance it deserves. But the solution is simple: the same as the first point. Start small, gain a local following, then strategize to penetrate other regions or markets. Evolution is key for small businesses; they can’t afford a revolution.
- Being money-smart: Time is money. And as your time is limited, money is unfortunately even more limited and restricted. Small businesses are always in need of a cash injection and if you squander all your resources, well its going to be a big problem for your small business. You can’t stay afloat and might go under if you can’t be smart with your money: so, you need to budget accordingly, save excessively and spend like a miser (but in a good way). The more change your account has for a rainy day, the more easy and quick will be the rainy day be spent when it inevitably comes. Money management is to a small business what oxygen is to a human. Without it, your business will suffocate and wither away.
- Time management: Time is another resource you’re really short on and your business direly needs it. The more time you give it, the more time you spend on its different facets, the more it’ll grow. Unfortunately, you can only give so much. And, to make matters worse, a small business runs on a timer; once the time is up, there’s not much left to work for. It’ll be gone unless you grow within a certain time. Luckily, there’s a solution for this too. Prioritise and strategize; the majority of your day should be spent on your business, and even then, the most time should be reserved for the most pressing matters. Once you learn this art, you can give your business the time it needs and still have a few hours left to spare.
- Juggling quality, growth: Quality and growth are both important for a small, growing business. Absence of even one of those can be pretty damning for your business. Just as quality will bring in more customers and will increase the pool of existing customers, growth will ensure that your small business takes time into evolving into a big business. However, most small businesses fail to juggle and prioritise between the two; leading to the slow, eventual demise of their small business. You need both; the process is almost tandem. The more you focus on quality and improve it, the more your small business will grow. So, don’t decide between the two; instead, know that this process works in tandem and focus on quality. Growth will follow.
- Ending dependence on founder: While the founder’s presence is imperative for a small business, there comes a time when to expand, it becomes necessary for the owner to relinquish their position to an employee. A smooth transition will ensure the small business grows into a large one; similarly, a transition that includes distrust and all of the things considered cyanide for a small business will eventually result in a small business getting smaller until its barely sustainable. The solution is simple; know that all small businesses require the transfer of power from the owner to a trusted employee and do the needful with the least amount of distrust involved. The more you trust your employees, the more chances your small business has to take off into the bigger leagues. To get latest news about business https://dthai.us/ is your best place to go.