January 23, 2015
Smart ways to master some of the greatest challenges faced by small businesses
Are you someone who wants to be an entrepreneur and leave your corporate cubicles once and forever? If you’re been an employee and an entrepreneur for even a short period of time, you will know for sure that the role of the latter is enjoying, thrilling and even satisfying. You might not be aware of the fact that by being an entrepreneur, even by being a not-so-good one, you can make way more dollars than that you could make as an employee. You can not only be your own boss and do things according to your wish but you can also make decisions on your own about recruiting and firing employees.
However, just as everything has some benefits and cons, here too you will gradually see that things are never too easy for a small business entrepreneur. No matter how tough you try, there will always be some kind of issues to solve and fire to put off. Whatsoever it is, you won’t at least feel that you’re alone as every small business owner goes through such things. When it comes to starting your own small business, you have to face some of the most common challenges.
The potential small business challenges – Are you strong enough to beat them?
After having an interview with some of the top CEOs of some popular organization, here is a list of challenges that were faced by almost all of them.
- Affording the marketing costs: One of the eminent CEOs of a natural-tea company has said that there is an issue that most entrepreneurs go through and it is the problem of finding more capital as your business is growing. You always find yourself with all the responsibilities of investing in inventory and soon you see the money getting tied up there. This happens especially when you’re selling off your product or service immediately and you hence need more money for operations in order to help you turn over the product. It is indeed tough to see a worthy product sitting on the shelf and not moving out only because you don’t have ample resources to move it.
- Coming across the right people: You can start and run a business along. For that, you need a team of like-minded, hardworking, dedicated and experienced people. The biggest challenge faced by most businesses is to find out the right resources. Not having enough talent and not having enough capital to be able to do what you want to do is one of the biggest small business challenges. Although organic bootstrapping can help you a bit but when it comes to moving on, you need capital.
- Achieving a fair price: When you start off with a small business, you’re entirely new to the market and hence you may face a very common challenge that of not getting fair price of your products and services. The trick is to be creative enough and find a niche in which you can compete with the other competitors. You have to get over the price sensitivity hurdle with manufacturers. All you need to do is wait for the right time so that you can get the fair share for your products.
- Cash flow management: Cash is king when it comes to your business organization. We’ve all heard about this and it is indeed true now than ever before. Without the desired cash flow, it is tough to run your business as you won’t be able to do what you desire. A healthy and wealthy profit might look nice on your fiscal statements but if accounts receivables and capital expenditures are draining away your cash, you won’t be able to continue your business. Too often executives fail to focus on cash flow generation. Not being able to manage their cash, they soon start incurring commercial debt and then keep asking for debt consolidation loans from lenders. So, cash flow management is yet another challenge.
- Increased competition: This is the time when it’s easier to start off with your new business. Gone are those days when it took months or weeks to get your business started. Now you just have to purchase a domain name and start your business online in order to be ‘in business’. However, staying in business includes fighting with your competitors and getting an upper hand over them so as to survive. You may find a number of companies fighting over the same product and competing against each other. Overcoming your competitors is indeed a tough challenge.
Therefore, when you’re wondering about starting off a business, you need not fret about the challenges as they will teach you stand strong amidst all odds. Take into account the advice of your financial advisors who can help you with some great ideas on tackling your business.