According to the statistics given in the Small Business Bulletin, small businesses are now creating more jobs than the giant businesses. The number of small businesses by 2016 was near to 28.8 million and they cover 99.7% of all the businesses in the US alone.
The trend of entering into the industry as a small business is widely spreading and now with the power of technology and the internet, these small businesses are not only surviving in the industry but they are also giving tough competition to the giant players.
But even with so many small businesses entering into the industry, they still have to face some major challenges, and many of the startups fail in facing and conquering such challenges. And therefore, only 30% of the businesses are able to survive till the 10th year.
There are many challenges which small businesses need to overcome in order jump to from the 70% of failed businesses to the 30% of successful businesses and we are going to discuss these major challenges in this article.
It is true that no one can add even a single second to the 24 hours of your day but the small business owners always think they could do so. With too many balls hanging in the air at one time, you need to prioritize your tasks according to their importance otherwise you will end up finishing nothing even while working for 15-16 hours a day. Devote your time accordingly and make your every second of work productive because being an entrepreneur is not that easy, and especially when it comes to time management.
Cash flow management
The biggest obstacle between a small business owner and success is the cash flow management. Delayed client’s payment, unplanned outgoings, and outstanding payments, all these things pile up between the small business owner and a proper cash flow management. But the good news is that the cash flow issues can be easily cured. All you need is proper planning, right employees and the perfect tools. There are many solutions which have been designed for better invoicing and budgeting.
Local and Online competition
Both local and online competitions are a big challenge for small business owners and therefore they should look for different ways through which they can differentiate their product and services from other similar firms. For example, if you are running a bookstore stop, then you will face tough competition from all those players who are offering larger inventory with an intense marketing campaign.
Matching growth with quality
It’s a very common story; you celebrate the arrival of a big client and the next day, you may struggle to fulfill their high quality needs. For most of the small businesses, growth comes with pain. In many situations, you will find yourself focusing on the growth while asking your employees to do the same or trying to cut the corner. But none of the above solutions are ideal as you will have to find a way through which you can find a way to growth without hampering your business.
Continuing a small business is not as easy as starting one. You need to have patience, right mindset, good employees and precise strategies under your sleeves in order to win the game.