As a small business owner you’ll face numerous challenges and in order for your business to grow and thrive you need to be able to overcome them. While it is impossible to anticipate all the problems that you may have to face, there are some common issues that almost every small business owner inevitably has to deal with.
Typically the four most common problems that you will have to overcome are:
Insufficient cash flow when you start out
To break even and start making a profit, your business needs to generate cash flow, but many small business owners have a lackadaisical approach to cash flow when they first start out. Often this is due to an overreliance on capital to carry the business when it first starts out, but it can also lead to further issues down the line if business decisions are made without taking cash flow into account. As far as possible it is best to always try to start generating a cash flow early, and focus on growing revenue right from the get go.
Business and personal debts that pile up
Most small business owners are exposed to a lot of risk when they finance their businesses using either personal loans or business loans that they personally guarantee. If unmanaged these debts can quickly pile up, especially if other areas of the business’s finance aren’t being carefully managed. As a small business owner, you need to make sure that you service and manage the debt so that it doesn’t end up spiraling out of control.
Starting to feel tired and burning out
With so much on your plate, you will find yourself constantly under a lot of pressure and having to work long hours. Inevitably that will leave you feeling fatigued and at risk of burning out as a result. While this problem isn’t easy to overcome, the first step is to realize that it is important that you take care of yourself, manage your time, and don’t overwork yourself. If you do that and combine it with good delegation skills, you should be able to manage the workload without taking on too much on your own shoulders.
Managing and motivating your staff
If you have little (or no) experience in managing a team and motivating them, it can be a tricky skill to pick up. At the same time the success of your business will depend heavily on your ability to keep your staff motivated, on track and properly manage them so that they deliver. Fortunately leadership is a skill that can be learnt, but you need to be open to doing so and start – sooner rather than later.
Now that you’re aware of these four common problems, you can take steps to address them preemptively. By taking measures now to improve all four areas, you will be able to strengthen your business and can then focus on dealing with any other challenges that may come your way.