A business that can't operate without its founder is a business with a deadline. Even when a business is not founder dependent, there comes a time when the issues from growth seem to match or even outweigh the benefits. Barista Photo via Shutterstock2 Comments ▼. From online invoice software to better budgeting systems and effective cash flow management, this challenge can be overcome. It’s important to remember that these challenges are just that – challenges and people do overcome them. ; Providing health care for your employees – finding the right solutions for your employees, fitting it into your budget, etc. Growth should never be the enemy of quality. The uncertainty of the economy’s condition cannot be overstated, and must be treated with the utmost respect; doing so keeps you from taking unnecessary risks. While this split focus can make it difficult to grow a business, running out of cash makes growing a business impossible. Our mission is to bring you "Small business success... delivered daily.". I think that businesses should really sit down and tackle these. The problems faced by small business are considerable, and one of the worst things a would-be owner can do is to go into business without considering the challenges ahead. Diversifying your client base is vital to growing a business, but it can be difficult, especially when the client in question pays well and on time. Managing your money – creating a budget, running financial reports, tracking expenses, paying bills, and more. The Federal Trade Commission applies these regulations to both online and print advertising. Whether a service or a product, at some point a business must sacrifice in order to scale up. If a single client makes up more than half of your income, you are more of an independent contractor than a business owner. Money management becomes even more important when cash is flowing into the business. How you respond to these challenges will change the “game” – as you become more successful, thereby leaving your rivals by the wayside. Although handling business accounting and taxes may be within the capabilities of most business owners, professional help is usually a good idea. Don’t let your business rely on one client – it’s a recipe for disaster. There is a large middle ground between shoddy work and an unhealthy obsession with quality; it is up to the business owner to navigate the company’s processes toward a compromise that allows growth without hurting the brand. If you are going through any of those problems, here’s a good news. All established businesses was once a startup, you might have listened or read struggles of small business owners who faced the problems and now running multimillionare companies. Nothing can hold a business back like money problems. How Investors can Perform Due Diligence on a Company, The Small Business Health Care Tax Credit, go into business without considering the challenges ahead. Without obsession, work becomes another mindless grindstone to put your nose to. A small business owner should not create a situation in which the business could not continue in their absence. In “How To Get Rich”, Dennis Publishing founder Felix Dennis had problems getting a loan for his business from a bank. 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 small business. Under current U.S. law, the corporate tax rate is currently 15% on the first $50,000 of taxable income. Does it feel like each year federal income tax rates skyrocket? We’ve looked at some ways to help make these challenges easier, but there is no avoiding them. ; Building a quality team – finding and hiring the right people to help your business grow. In the daily grind of living, it is crucial more than ever to be obsessed with what you’re doing. There are plenty of tales of small business owners giving up their own salaries in order to pay their employees and vendors. If you’re still thinking about starting a business, make sure you are selling a product or service that you are passionate about. However, there are some that are strictly small business problems, ones most large companies grew out of long ago. One simple tip is to keep strict track of your money, where it’s coming from, and where it’s going. Whether it is your business or your life, one will likely emerge as a capital drain that puts pressure on the other. Problems such as inexperience, business size, and the lack of resources can get in the way of an entrepreneur’s success. Having enough cash to cover the bills is a must for any business, but it is also a must for every individual. Unfortunately, this can result in a longer-term handicap, because, even if you have employees and so on, you may be still acting as a subcontractor for a larger business. All rights reserved. When your income has you riding one “whale”, that one whale could dash off to do business with someone else. His solution was to keep astute track of his income and expenses. In time, a business may boom beyond growth expectations. Want to know the biggest challenges facing small businesses? Unfortunately, it is usually that level of personal engagement and attention to detail that makes a business successful. Having professional help with money management frees up a small business owner to focus on operating concerns. The 10 Biggest Business Problems for Small Business Owners . Here are the five biggest challenges for small businesses. (In advertising, honesty truly is the best policy. Otherwise, the quality of your product/services suffers… thereby giving your customers a shoddy experience… which inspires them to take their business elsewhere. Bar-none, one of the most challenging aspects of running a small business comes from managing health care for your employees.