The courage to start a business itself is one of the steps to success. The challenges come when managing the business and related things become a burden.
The small business is alike to a toddler. They need as much nourishment as a child needs. That is why during the process, they miss on areas that hinders the progress. These 4 top small business challenges will give an idea where are you lacking as an entrepreneur, and how can you overcome these challenges?
Plus, the struggles of small business owners are real. This is something can’t be avoided if it is the only source of income. It is important to enhance the needed areas for the long-term growth.
4 Small Business Challenges 2020
Here are the five challenges faced by the small businesses.
1. Spending Mistakes
One of the most common small business challenges is not having the financial education. The owners spend the entire earnings, even if it’s the smallest amount.
I won’t say it is their mistake. The thing is they don’t know the ways to spend that money. Because of the need and having the business as the only source of income, they spend whatever they earn in a day.
This also makes them not pay off the debt because they can’t get over the habit of spending all that they earn. If you are earning 100 Rupees a day and using the same 100 rupees a day, what are you even making then?
If you break down the 100 rupees, even save the 25% of it in the start, you will have 750 at the end of the month. The rest you can use to fulfill the needs.
If you lower the amount spent on your needs initially, the small business will grow from small to big fulfilling all your needs at a time. Additionally, you will be able to pay off the debt easily.
2. One Client Focused
Because most of the income is generated through one client, you don’t expose yourself to more. You feel the work will increase, and you alone won’t be able to handle so, why not manage more clients when you hire people?
The one client income is making you a freelancer, not a business owner. When you learn to work on a number of projects with a documented plan, you progress better. The plan is the key. That will help you manage the different clients, and won’t make you feel pressurized.
Small business challenges are not difficult to overcome. They can just go in the flow with a little more learnings.
The other problems encountered by small business owners are imbalances in personal, social and professional life.
While making the most out of the business, you forget to nourish your mind, body and soul. That feeling that my business will go down if I take a day off actually hinders the progress.
When you stop taking care of your health, your thoughts and not so present around the family, the things get worst. To be able to grow more, you need to walk ahead with every important thing – family, friends, social relationships, and mental health to achieve healthy lifestyle.
If you think your absence will snatch away your business, you are wrong. These are the common struggles of small business owners, but once managed to balance all the areas of life, you will win and grow more.
Additionally, a good health with positive thoughts will double the productivity.
4. Dependent On The Founder
The business with only founder can finish the existence in no time. The uncertainty cannot guarantee the presence of your business if the controls are only in the hands of the founder.
The owner has to appoint the control to someone who can take over the business in their absence. It can be an employee, a partner or a family member interested in the business.
If the founder meets with an accident and can’t work for a year, who will work then? If the founder dies, who will work then? If the founder is on holidays and can’t be productive, who will work then?
One of the small business challenges is there’s no real planning.
The initial stages are too crucial for any venture to grow. If in the initial stage something happens, the venture will die. In that matter, you have to make your business ‘founder independent’. So that the work doesn’t stop.
Hope this was helpful. Let me know what challenges do you face other than these four in the comment section below.