23 Oct Small Business: 5 Most Common Problems and how to Deal with Them
Starting a business is never easy. It takes a lot of time, energy and, of course, money to do it right. No matter how good and thorough your business plan is, there will always be a learning curve that will bring some problems, both expected and unexpected. Some would say that starting a business is not an actual problem, but the ability to successfully maintain one. There are a lot of challenges to overcome on that road to a successful business. Here are the 5 common problems any startup and small business eventually face.
Money makes the world go round
It is true that money makes the world go round, but it is also probably the thing that separates successful from the unsuccessful businesses. Obviously, any business needs startup money, i.e. an investment in order to get started in the right direction. You shouldn’t expect instant profit, because it takes time, dedication and thorough planning before you can see a reasonable profit. This is why you need to be prepared for the worst case scenario. Be patient and start slowly.
Don’t waste money on unnecessary fancy office supplies and expensive marketing solutions. Moreover, if your business doesn’t need an office, you can start it from your home. Have in mind that some of the biggest companies started in their basements or garages, e.g. Apple, Google, Amazon and many other.
When it comes to money management, you need to be realistic and completely understand the different aspects of cash flow. Very often, accounting and tax planning can be a real nightmare, which is why you should reach out to professionals that can help you with this problem and make auditing services and accounting easier.
Clients keep you in business
Gaining the trust of new clients can be really hard, especially if you are conducting business in a highly competitive market. This is why you need an excellent marketing strategy and proper research on the competitors. Learn as much as you can about your target group and highlight the benefits they will gain if they decide to go with you. Once you get the first clients, make sure to provide high quality services or products, since you want them to come back and spread the word. Finding new customers can be hard, but maintaining them can be even more challenging. Earn their trust and meet their expectations as you want to make this a long term relationship.
Affordable marketing strategy
Although you shouldn’t waste money on expensive marketing promotion, it certainly doesn’t mean you don’t need one. As a matter of fact, a proper marketing plan is one of the most important aspects you must consider when starting a small business. However, instead of spending a small fortune on TV commercials or newspaper ads, the cheaper and by far the most effective way of promoting is via social media marketing. Identify your primary audience and learn which social media platform they spend most of their time on, then reach out to them. Don’t forget to visit various blogs and forums, where your potential clients exchange their opinions.
Creating the right team
It is essential to create a team with productive professional individuals that can truly make a difference. Don’t bring somebody on board just because you know them or because they are your friends. You need skillful professionals that can make an impact and work perfectly as a team.
Taking a risk
In business, you have to take a few risks in order to achieve anything worthwhile. There is nothing you can fully control, and every investment and project are a huge risk. No one succeeded while playing it safe. Some risks will lead to failure, and that’s perfectly normal. You just need to learn to deal with them and use them to your benefit.
Your income depends on clients, which is why you need as many clients as possible. Don’t rely on just one or two big clients, especially if they account for more than a half of your total income. They can stop asking for your services at any time and you will end up with no customers. Don’t just wait for problems to occur before doing something about them, try to identify them in advance and you will be able to deal with them more efficiently.
Numerous and constant challenges are something every small business owner needs to deal with. Entering the waters of entrepreneurship is time-consuming, but if you are patient and persistent in achieving your goals, you will able to attain a great deal of success with time. Of course, thorough research and a carefully planned business strategy are absolutely necessary or you will unable to keep your business running efficiently and eventually you’ll fail. Do your homework and be prepared, and if anything bad happens, you’ll know how to deal with it.