In recent years, the local economy has noted the dynamic growth of small businesses contributing significantly to the local economic and employment growth. Would-be entrepreneurs see the growth of small businesses as an excellent opportunity for them to start a business. However, it is one matter to start a business and another to sustain it. When starting a business, you face the same challenges met by all types of business: from when you develop a business plan to the hiring of the staff, to marketing strategies, and to the other aspects of running a business. The challenges faced by the small business are different and are pitfalls to the sustainability of the venture.
Concentration on few customers.
It is tempting to focus the attention on a single customer who pays well whenever it is due. The danger is when this customer decides to shop somewhere else and you are left with a substantial loss of revenue. A sensible way is for a business to widen its customer base and cater to their customers’ needs equally. This protects the business from the undesirable customers who use up much of the company’s services and resources. Divert these resources instead to repeat customers with a high percentage of average purchases.
For a small business and especially for beginning entrepreneurs, it is difficult to separate business from personal life. Money intended for the business flows to personal and domestic expenses or the other way around. Either way, one or the other suffers unless the two personalities are clearly delineated. Starting a business needs a substantial capital to run and sustain its operations. One of the reasons for the small business to fall into bankruptcy is the insufficiency of capital resources whereas a well-managed working capital enables the business to at least break even.
Hiring the right people.
Limited fund is a challenge a small business faces in hiring exceptional staff. Attracting excellent workers to work for you is a problem with the low salary and benefits you can offer. The tendency is for the owner to do multi-tasking, which prevents him from focusing on more important business concerns. However, it is still possible to attract the right people to work for your business. Study large companies to find out about incentives not offered and extend these to potential staff. An example is the flexible time schedule. Flexible time is attractive as this allows people enough time to work on their other interests for as long as such interests do not conflict with your line of business.
Balance between work and life.
Running a business, if unchecked, keeps the owner working rather than living. There is never an end to business concerns that keep you tied up in the office. If you find yourself in this situation, fatigue is not far behind, which may result in you losing the drive and your performance being affected. Take a break, recharge, and delegate work to the staff so operations continue in your absence. Other than the goal of revenue, starting a small business offers opportunities for you to be creative and innovative. There will be problems you encounter on a day-to-day basis but you can consider these as opportunities for growth. Eventually, your small business will grow and you will be facing new challenges and opportunities. The problems you faced when you started your business become the foundation of your growing business.