Small Business Owners face tough challenges while growing their businesses. Here’s some of the challenges every business owner faces;
SME struggle with managing cash flow right from the beginning and situations get tougher due to increased borrowing. A business owner is on a constant lookout for low-interest loans while bank interest rates remain quite high and competitive. High interests eat up a large part of the margins and create slowdown in business activity.
Managing cash flow at an early stage keeps you in control of your spending thereby building the right atmosphere for growth, approach for loans. You may have to rely on personal loans, business credit cards, loans from friends and family, or crowdfunding. Managing the cash outflow, living frugally and focusing on improving business inflow using your business skills can help you manage better.
Keeping accounts up to date, keep track on your receivables and payables, avoid paying penalties are part of the process to achieve your goals with a long-term business vision in mind. Debt is good if your customer is paying it to fulfil orders in time. Bad debt is an invitation to getting your business complicated with interest payment piling up.
Small businesses do have incumbent jobs, with the owner himself wearing various hats, leading to handling all tasks simultaneously, causing an ultimate burnout. Employing the right people with the right skill set, experience and knowledge can be a daunting task too but will keep you more focused on important parts of your business, especially revenue generation.
You had started your business to create employment in mind. While job creation takes time and related to the customer demand it becomes necessary to recruit and train a team at the very beginning. While you see a rise in demand you need an efficient team to fulfil orders and deliver in time.
Managing people comes at a time when you have set well-defined roles and responsibilities, so people do not step on each other’s shoes.
An entrepreneur juggles with many roles, wearing many hats and spending hours together working on his business initially, from a cleaner to the boss. He has so many things to get done to keep his business running and keeping his clients happy. Slaving day and night causes frequent burnout, causing restlessness and dedicate time to family and friends. It becomes important to manage schedules to each area of life than lose your mental and physical health and allocate a few hours a day.
Setting schedules allow you to have more control makes good progress in the long run. Remember, you can sprint and burnout easily while a marathoner thinks long term. Juggling too many activities will not get you anywhere else and that’s why managing time keeps you healthy and your business safe.
Running a business comes with laws both to protect you and your business. In business, the world is full of danger which comes to you in any way possible. Understanding the local laws, documenting them, registering them with the local authority can help you grow your business successfully. Some laws are government laws like registering your company laws and contracts, understanding labour laws, discrimination, intellectual property, mercantile laws, bank laws, sexual harassment and the like. These laws are difficult to understand, but framing them with the help of a consultant can bring your tremendous relief to your company. You can have good sleep if any company sues you, or an employee plays phoney, or you are crossing into unknown territory can break your business.
All entrepreneurs are basically marketers and if they are not spending time marketing their brand they are doomed to fail. Experts believe you need to spend 75% of your work into marketing and leave all the other production and accounting activities to other people in your company. This applies to even big or small time entrepreneurs. If you do not know how to market or sell your product your not called an entrepreneur. It doesn’t mean you need to sell anything instantly, but you need to keep in constant touch with clients, new prospects, understanding their needs firstly, creating a trust, sending them emails, offers, discount and using your creativity to get business. Without customers, you are nowhere a company. Big clients look at the leader, his team and their capacity to complete the project than a small time gig. They love coming back for more work and you need to connect with them often through emails, frequent visits or just talking on the phone.
Online marketing is the best place for entrepreneurs to be at this time not only because it’s a trend, but it’s highly cost-effective than traditional advertising and lead generation. Websites, Social media, SEO, e-commerce and other online tools have made it easy to engage with your clients through giving updates, provide offers and win in the long run.
Manish started out as a research writer and has been writing for the past 2 years on technology, marketing, and business. He has held various job posts in finance, marketing, and engineering companies.