Small business owners are the engine that keeps our country going. They employ over 60%of the workforce and contribute vast sums to our GDP and overall economy. It’s difficult being a small business owner and for the most part small business owner want to be big business owners so they’d like to stay in business and scale. But before they get to that point there’s many obstacles and challenges facing small business owners in their way a few that we’ve identified are client dependence, money management, fatigue, founder dependence, balancing quality and growth.
A Single client makes up more than half of your income this makes you an independent contractor not a business owner Diversifying the client base is vital to growing a business.it is generally better for a business to have a diversified client base to pick up the slack when any single client quits paying.This arrangement allows the client to avoid the risks of adding payroll in an area where the work may dry up at any time. All of that risk is transferred from the company to you and your employees.
2. Money Management
Having enough cash to cover the bills is a must for any business, but it is also a must for every individual capital drain that puts pressure on one or the other.Head off this problem, by making sure you’re either heavily capitalized or can pick up extra income to shore up cash reserves. Many small businesses start out with the founders working a job and building a business simultaneously. Split focus can make it difficult but running out of cash makes it impossible.Money management becomes even more important when cash is flowing into the business, professional help i.e. accountants, bookkeepers, business managers is usually a good idea.The complexity of a business' books go up with each client and employee,prevent it from becoming a reason not to expand.
With long hours and constant pressure to perform even the most passionate individuals get worn out. There’s fear that business will stall in their absence and avoid taking any long breaks away from work to recharge that’s when fatigue sets in. You begin to make rash decisions about the business, and may have the desire to abandon it completely.
Finding a pace that keeps the business humming without grinding down the owner is a challenge that comes early (and often) in the evolution of a
4. Founder Dependance
What happens If you get hit by a car, is your business still producing income the next day?A business that can't operate without its founder is a business with a deadline.Many businesses suffer from founder dependence. A founder unable to let go of certain decisions and responsibilities as the business grows. A business owner has to give more control to partners and employees, however, this is a big stumbling block for founders because it usually involves compromising on the quality of work being done until the person doing the work learns the ropes.
5. Balancing Quality and Growth
Issues from growth seems to match or even outweigh the benefits. Business must sacrifice in order to scale. You’re not going to be able to personally manage every client relationship or inspect every widget. Level of personal engagement and that attention to detail makes a business semi-successful. Small business owners often find themselves tied to these habits to the detriment of the company's growth. Middle ground between shoddy work and an unhealthy obsession with quality, it’s up to the business owner to navigate the company's processes towards a compromise that allows scale without hurting the brand.
These are challenges, but not death sentences. One of the worst things a would-be- small business owner can do is to go into a small business without considering the challenges ahead. We've looked at some things that can help make these challenges easier, but there is no avoiding them. An important step in overcoming a challenge is knowing the size of that challenge. Besides a competitive drive is part of the reason you started the business in the first place every challenge represents an opportunity