Owning a small business is a dream for many first-time entrepreneurs. However, starting a small business is no easy project, and maintaining one can be just as difficult. Small business owners face a variety of problems on a daily basis, and they must be able to find viable solutions to each of these challenges. Here are the top six challenges that small business owners may face and how to overcome them.
#1: Time
Like many people, many business owners are pressed for time. In the business world, time is synonymous with money, so wasted time equals wasted money. As a small business owner, your time may be stretched among different job titles, such as CEO, accountant, and product developer. To combat this issue, you’ll need to engage in specific time management strategies, such as the SMART model:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
You can also use tools such as time-tracking software to help you see where you’re putting the majority of your time, and where time can be better spent.
#2: Supply Chain Disruption
It’s no secret that almost the entire world has been impacted by the current supply chain issues, and this affects virtually every business that sells goods to consumers— and even those who provide services to clients. Because you have little to no control over this, there are very few solutions to this issue. First and foremost, be upfront with your customers because they appreciate honest businesses much more than those who beat around the bush. Also, try to increase your inventory whenever you can to try and stay ahead of supply chain issues.
#3: Money
Another major struggle faced by many small businesses owners is money— or the lack thereof. Just about every business owner has (or has had) limited funds. The most obvious solution to a lack of cash flow is to obtain funding. Some funding options that small business owners have include:
- Bank loans
- Credit union financing
- Crowdfunding
- SBA (small business administration) loans
Another obvious solution to your money problems is to better manage it. Maybe you need to hire a professional accountant to help you with your finances, instead of managing them on your own.
#4: Marketing and Advertising
No one will know about your company if you don’t advertise it. There are several different marketing strategies that you can try and if one doesn’t work, try another. You may even need to hire a marketing specialist to help determine which marketing strategies will work best for your type of business. Overall, digital marketing is the most effective form of marketing, and there are several different types of strategies within this method, such as:
- Affiliate marketing
- Content marketing
- Email marketing
- Inbound marketing
- SEO (search engine optimization) marketing
- Social media marketing
Social media marketing is a method that most small business owners can do on their own without hiring a marketing specialist.
#5: Employees
The recruitment and retention of employees may be the biggest issue that the majority of small business owners face. Low unemployment rates, although good for the country as a whole, present problems for the owners of new businesses. You can always post your job openings on job search sites, such as Indeed.com, but that only solves the recruitment problem.
To solve both issues, look into hiring a recruitment marketing agency. This type of agency helps you build a brand for your company to market towards potential job seekers— and not just any job seekers, but those who possess the skills and knowledge that match your needs. This also helps with retention of employees because you’re advertising towards the best fit for your company.
#6: Administration
Administrative tasks such as bookkeeping, payroll, and taxes are tedious, but necessary tasks. Failure to do these, or even doing them incorrectly, can lead to money problems within your business. The solution here would be to outsource these administrative tasks, this way you can focus on other business matters while these tasks get done quickly and correctly.
As a business owner, you can face any of these six problems at any time of running your business, so it’s important to be aware of how these problems can be fixed. The majority of these challenges can be solved by hiring a specialist or investing in software— but that presents another cost to you. For a successful business, you’ll have to spend extra money in some places to help save and make money in others.