5 Biggest Challenges Facing Your Small Business
It is common to assume that big companies control all the aspects of a country’s economy. This is far from the truth, as small businesses play a significant role in generating means for numerous families, creating employment, and managing commercial/industrial operations nationally and internationally. They account for 40% of the country’s workforce, 33% of Australia’s GDP, and 12 % of gross company tax revenue. Therefore, owning a small business is an achievement.
However, sustaining a small business is not easy. Almost 50% small business start-ups close after the first year. If you are a small business owner and wish to save your venture from this fate, here are the 5 biggest challenges facing your small business you need to overcome.
Dependence On One Client
If more than half of your income is drawn from a single client, then growth prospects of your business are grim. You are at risk of becoming an independent contractor rather than a business owner. Every small business starts with only 1 or 2 clients. But, it is imperative to increase your client base so that even if a client leaves your business doesn’t shut down.
Running a business requires substantial capital so that operations can be maintained even if there are less or no profits. Therefore, having a cash reserve for your business or a sponsor is advised. Also, it is vital to keep track of earnings and expenditures. Hence, getting professional help for bookkeeping is required too.
Maintaining Quality With Growth
It is a common challenge faced by small business owners. It can get difficult to maintain a balance of quality and growth. Client and customers are attracted your business for the quality and as your business grows, rendering the same quality will retain them. So, you mustn’t compromise on quality to meet the growing market demands.
To scale your business and maintain the quality, you need to manage your resources. A good team of dedicated individuals is essential for any company. Make sure you have a stringent hiring process to get a suitable professional for a job. Also, it is necessary to have a human resource department to cater to the needs of your new and existing resources.
During the initial phases of your business, it is common to feel exhausted all the time. Running a business is time-consuming and depletes your energy. Learn to manage your time and do not try to do everything yourself. Delegate tasks and work at a pace that is suitable for you. Working when you are tired will only decrease your productivity and cause more harm than good.
You cannot eliminate all the challenges while running your business. However, by being proactive, building a reliable support system, and taking advice from experts, you can learn to face them. If you wish to expand your business and maintain steady growth in income, you need to identify potential problems and devise practical solutions. If you can do this, then you can overcome any challenge and make your venture a success.