Biggest Challenges Small Businesses Face
Getting your foot in the entrepreneur world is much easier than maintaining a business once you already started. Today we’re talking about the biggest challenges that every small business has to go through before becoming a steady and functioning business system.
1. Client Dependence
Small businesses usually start by having only several clients. But if a single client earns more than half of your entire income, you are rather an independent sub-contractor than a real business owner. While it is completely normal to be client dependent in the beginning, it can also be a burden in the long run.
Working for a couple of clients that are relying on you but you can rely on yourself, makes you act as a sub-contractor and will lead to a greater business insecurity. Try to diversify your client base so your business can continue to work and grow even if the best paying client quits paying you.
2. Money Management
Having enough money to pay for all bills and expenses is not only important for each business, but for every individual too. When you own your own business, it is very likely to feel the pressure of growing bills on both sides (personal and professional). This is why it is much easier for business owners that have a good capital before starting, or those that are still having an extra income outside of their new business.
While it is definitely more difficult to start a business while working another job simultaneously, it is definitely a better way to avoid running out of cash and providing your business with a steady start. Once you see and feel that your small business is increasing its profit, it will be much easier to quit your first job and focus on your business’ growth.
Being an entrepreneur comes with fatigue. Usually all the hours spent to work and give your best for each task you’re doing inevitably wear you down at the end of each day. Most business owners usually work much longer hours than their employees. This behavior is partly caused by the belief that the business may stall in their absence, which leads business owners to avoid taking time to recharge. Instead, they invest most of their time in work.
While it is normal to fight a bit of fatigue every now and then, accumulated fatigue might lead one to rash decisions and even abandoning the business completely. The challenge of finding the perfect balance between time spent on work and growth of the business is one of the first ones that appear in a small business owner’s journey.
4. Founder Dependence
If you get sick or you decide to take a break and travel with your other half, will your business still be having income? Most of small businesses can’t manage to deal with deadlines when the owner’s not present.
This is often due to the owner’s fear of letting go of certain decisions and responsibilities as the business grows. While this challenge may sound like a pretty easy one, it is psychologically hard to compromise on the work you have invested so much time in, and accept that when you give more responsibilities and control to employees or partner the quality of the work might initially be lower than the one your business usually provides.
5. Balancing Quality And Growth
Initially most small business owners focus on providing the best quality of their service or product in order to market themselves better. But, the truth is that giving the highest quality results is very time consuming, which inevitably leads a business to lose money.
That’s why it is very important for the small business owner to understand when it is time not to inspect every single detail of the work done and find the balance between a good work and an overly checked, quality-obsessed one. If you want to scale and grow, you will have to engage less personally to your job tasks, and see at what point you should start doing a new task instead of rechecking the details on the work already done.
These were the top 5 challenges every small business owner has to go through before setting the core basis of his new business. If you’re a new business owner, don’t panic. While you can’t avoid these challenges, you can definitely prepare psychologically for them and be more attentive about certain things so they don’t ruin your long term business plans. Persistence, patience and efficiency will set your business apart from many others. Just don’t give up!