If you own a small business, you may feel that the problems that your business is facing are unique. But this is not exactly true. The biggest hurdles that your business is facing are similar in essence to those your competition. There are several challenges that are acting as major roadblocks to the ascent of agencies and small businesses. Some of them are discussed below:
One of the biggest obstacles to the success of relatively small concerns is marketing. To get the word out about your business is important for its success. With the help of technology, you can now test and bring a product to market easily, but it is quite difficult to cut through the noise on social media as well as other marketing channels and differentiate your brand and business.
- Hiring new employees
A hurdle that several small concerns must overcome is while recruiting a workforce. They find it particularly difficult to handle problems related to the hefty costs associated with getting a workforce on board. Sometimes the total cost of the process of bringing them on board – bonuses, training, equipment, benefits, taxes etc. – can range anywhere between 1.5 and three times the salary assigned to that particular designation. That is a really notable amount of investment for companies that are usually already hard pressed for money, to begin with.
- Relationship with customers
According to experts, the key to keeping your small business blooming with success is proper communication and the relationship that you have with your customers. Not all businesses see the face of success. Small businesses that achieve success and continue to survive are the ones where the owners, as well as the employees, have a great relationship with their customers. Know what your customers want and ask them how you can do better or what can be added. For agencies and small businesses, relationships are of paramount importance. In this digital age, it has become important to develop a bond with customers.
- Relationship with the government
To make local government work for you, take the idea of relationships to the next level and use those skills. According to experienced businessmen, small businesses which reach out and become a staple in the community are the ones that get the most support from the local government. You can be present at community events or join the chamber of commerce so that the local governments support you. If you make an investment in your local community, it will affect your business positively. Also, to build valuable customer relationships, you can volunteer to work on events or serve on local boards.
- Cash flow management
A variety of problems related to cash flow is the cause of a headache for many companies. And for agencies and small businesses, the main problems are to do with unexpected outgoings of cash, clients deferring payments and expenses that seemingly need to have been paid for yesterday. However, these problems do not come without solutions. While product demand is far more difficult to control in-house, cash flow related problems can be resolved. In order to improve on your invoicing and budgeting, there are a number of newly designed solutions that are available. All you have to do is to find a suitable one.
- Increasing profits
Agencies and small businesses that have five to ten employees face problem such as increasing profits. There can be many reasons behind this, but the main reason that it highlights is the inability to remain a low-cost leader against the competition. To stay ahead of your competitors, what you can do is to innovate and optimize constantly.
- Not becoming dependent on major clients
Client dependence is a huge issue for several organizations, mostly those with under ten employees. In case the organization has to depend on say just one or two clients for the major chunk of the money they make, then that is a sign of hitting the danger zone. The balance of power is disturbed unfavorably for the firm if this were the case. It would be hard for them to survive – to just remain operational with minimal profits. Reaching this stage is not at all recommended. If you want to your firm to grow, you must necessarily diversify your clientele.
You might, in all probability, as the owner of a small concern, have to face hurdles that CEOs of large companies may not face. However, to look at the brighter side, being small business owner does have a number of benefits. Being small in size, you are much better equipped to respond to volatile circumstances, as well as more flexibility. Pay more attention to the strong points of owning a small business and make more effort to emphasize and use them in advantageous ways for you to overcome challenges. The first step would be to overcome them.