For many entrepreneurs, being able to start a business is already an achievement, but they often forget that the more challenging part is to maintain it. Yes, there are various challenges that a large or a small business may have to face, such as building a brand, hiring the right people, and others. However, there are those that are unique only to small businesses, which large and successful companies have already grown out of.
The following are the biggest challenges for small businesses:
a. Dependence on Clients
If one particular client makes up the majority of your income, you’re considered an independent contractor and not really a business owner. It’s important that you diversify your client base when you’re growing your business. This is easier said than done, however. But it is something you have to take action on because if you don’t, this can lead to a long term handicap. Unless your main client has a consistent and long-term need for your service or product, you may have troubles keeping up with your own expenses once the client stops paying.
b. Managing Finances
Businesses must always have enough cash to cover their bills and business costs. Thus, you need to be heavily capitalized, or you must be able to get some extra income to increase your cash reserves. With that said, money management is of utmost importance. And although dealing with business taxes and other accounting matters may be within your own capabilities as a business owner, getting some professional help is often a great idea.
No matter how passionate and enthusiastic you are with your business, there will come a time when the work, hours, and pressure will wear you out. And when fatigue begins to set in, this can lead to you making rash business decisions, which may affect your entire business operation negatively. The challenge for you as a business owner is to find a pace that will keep your business going without you overworking and feeling exhausted.
d. Dependence on the Owner
If you got sick or had an accident, for instance, would your business be able to produce income continuously? You don’t want to have a business that will not be able to operate without you. The challenge here is for you to find employees or partners that you can trust and give control to. This isn’t easy because it might compromise the quality of work, but it is something you should seriously consider.
e. Balancing Growth and Quality
As you start growing your business, you will find that there are more things you need to do and pay attention to. As a result, you may have less time for checking and maintaining the quality of your products or services. This is when having a business consultant will be very helpful. A business consultant has the experience and expertise that will help you figure out ways to grow your business without sacrificing the quality of what you’re offering.
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