Common Challenges Small Business Face — And How to Overcome Them
by Mashum Mollah Small Business 19 August 2019
Starting a small business is one of the most rewarding career decisions you can make, but it is also one that comes with significant challenges to overcome.
By deciding to launch your own company or private business, you are taking on legal and financial responsibilities you will need to make sure you can discharge responsibly, and you’re also rolling the dice on whether or not all your hard work will pay off in the long run.
If you are thinking about starting a small business, here are the three most significant challenges you’ll likely face in your first year, with a few tips for how to overcome them.
As the old saying goes, you have to spend money to make money. And even if you have settled on a business plan that is likely to start generating revenue relatively quickly, you will still have to find some way of raising start-up capital.
For many members of the middle and upper classes, it’s fairly easy to borrow money from the bank of mom and dad. But what if you don’t have generational wealth, and you have already been turned down for a conventional bank loan or line of credit?
Fortunately, there are a growing number of funding alternatives available, including merchant capital advances (you can get more information at Sharpshooterfunding.com about how these advances work).
Many businesses start out with a single individual or pair of partners, who believe they have the skills, vision, and expertise to meet a perceived customer need.
But while it is possible to get a business started with a small skeleton crew consisting of the owners and their friends and family, at a certain point the work is going to get to be too much, and you are going to need to hire support staff.
Payroll is one of the single biggest expenses for most companies, so you need to be strategic about it. More importantly, you need to make sure to hire key individuals who the skills and energy you need.
Plan to hire in advance and take your time making your decision. Whoever you bring on board is going to plan an important role in making your business work, so don’t rush it.
3. Getting the Word Out:
Let’s say you’ve managed to put together a decent funding package, have perfected your products and services, and are ready to start making money. Do you simply open your literal or digital doors and wait for customers to start coming in?
In most cases, unless you offer a recognizable service in a high-traffic area (operating a restaurant or boutique, for example) you probably can’t just rely on who walks in the door. If you want to attract customers, you are going to have to get the word out about your business.
There are lots of ways to do this, of course, and depending on what kind of sector you work in, some may be more effective than others. But whether you opt for a social media campaign, events-based promotion, advertising in trade journals, or good old-fashioned billboards, you have to reach out to potential customers and get them excited if you want your business to survive.
Launching a business of your own can feel intimidating, but it doesn’t need to. Facing the challenges that come with starting your own business head-on, and making sure you have the funding, staff, and advertising support you need, will ensure you the best possible chances of success.