Beth Ann DeBouvre starting a business and getting it off the ground is very satisfying for entrepreneurs, but the bigger challenge is to maintain it. All sizes of businesses face many challenges that are pretty standard, which includes arranging for finance, hiring the right people, building a brand, etc. But as small businesses are different from the large ones, some challenges that small businesses face are unique too. What are these challenges that small businesses must be ready to counter the topic of discussion of this article?
Dependence on client
Getting good clients who not only gives sizeable business but also make the payment on time is a blessing for small businesses that must fight hard to maintain proper cash flow. Having a diversified client base is vital for business growth. However, it happens with small businesses that they become over-dependent on a single good client that gives good business and pays well in time. The client’s contribution to the business is undeniable, but that the business revolves around that client only is not a good sign as it is detrimental for making the business grow. The business owner acts as a sub-contractor for the client with exposure to the risks that the client’s business may have to face. It can also be risky if the client does not have a consistent requirement for the products or services.
Beth Ann DeBouvre maintaining a steady cash-flow is vital for any business. But it can be very challenging to manage the money when the owner stars receiving the cash that flows into the business. Even if you are a skillful accountant when you don the hat of an entrepreneur or business owner, it is sensible to seek professional help in managing money and maintain the accounts. Often accounting problems impede business growth and having a trained accountant, or financial expert can keep things under control and pave the way for business growth.
Business owners often fall victim to extended working hours and encounter too much stress, thinking that their absence could make the business stall. Their hands are overflowing, and as they fear that the business could suffer if they reduce their active working hours. They over-work so much that they become fatigued with no chances of recharging their batteries.It can lead to rash decisions that affect the business. The challenge is to set the pace of business in such a way so that it does not crush the owner.
Dependence on the founder
Despite being an ownership business that most small businesses are, there must be a proper hierarchy of business so that it can run even when the owner is away for some time. The owner must create a hierarchy within the organization by delegating responsibilities and also some amount of decision making so that it does not suffer from over-dependence on the owner or founder and turns to be a one-man show that stunts growth and makes the future uncertain.
Business owners must aim for business growth that involves scaling up, but they must never pursue numbers by sacrificing quality, which rules supreme in determining the fate of the business.