8 Biggest Problems Facing Small Business’s.


So what are the 8 Biggest Problems Facing Small Business’s? Nowadays small businesses are facing even more problems with the recession facing us all they have even more problems. the dominant question is How Will I Survive? Here are ten problems I have identified and some ideas how to overcome them

1. Cashflow

Healthy cashflow is a vital part of running a business. It’s the make or break for many business owners who need to stay on top of their finances to ensure they can operate successfully. In times of crisis small business do not have the financial strength to stay the coursse. There are many opportunities for apps and software to give business owners a more comprehensive view and guidance around their financial health. These apps are cheap or even free so there is not a lot of investment needed. But by using these a small business can make their business run more efficiently.

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2 Access to capital

The biggest problem facing small buiness’s is the lack of capital. Without money they cannot  increase  their  exposure. It is a dual challenge, but obtaining capital is a bit more important because with access to funds they can garner more exposure. With capital they  can also get out and find business opportunities so they can provide their solutions to other companies.

Equity Investment.

Growing the business with limited access to capital and resources presents a big challenge, To grow the company they are looking for an equity investment so that they can facilitate the growth to the next stage, but it is hard to find.

Profitability.

Many people start a small business it to create and progress their ventures is because they want to create lasting wealth driven by profit. But getting to profitability, especially for sole proprietors, can be very hard.  In this competitive world this is gettng more difficult. so digital l innovation is a key to increasing profitability. Entrepreneurs should consider how they can do this to help scale an owner’s efforts.

Productivity.

If profitability is about squeezing every cent out of a dollar for small buisnesss’. Then productivity is getting the most from every minute. With every digital leap we take, we’re given new challenges to stay effective, focused and productive. But challenges represent an opportunity. How can we use apps, technology, software and digital technology to remove manual, time-consuming tasks and let SME owners focus on creating value in the areas where they have the most impact?

Connections.

As social creatures, we like doing business with people we know and trust. But for small business owners who spend their time getting work done and don’t have the capacity to network to find more business, it’s a tough reality. How can we connect more business owners to each other, new opportunities and markets and new customers?

3.Finding ways to grow.

The biggest challenge facing small business is the limited access to capital and resources. In order to grow the company they are looking for an equity investment so that they  can facilitate the growth to the next stage, but they find it is hard.

  • Getting access to potential customers.

Their  biggest challenge has been trying to identify who the buyers are. They find it is very hard to crack that code. Even when they do crack that code, it is always hard to get a return phone call or email. The problem is that these people are getting hundreds and thousands of emails and phone calls a day.

  • Getting paid on time.

Small companies find that the biggest challenge right now is the marketplace. Their challenge is that many of the companies that they do business with are unable to pay their bills as a result of the economy. This is even worse now with the Pandemic. Customers still want the product, but they will often times delay the payment and that eats into the working capital. With the economy the way it is, it becomes harder to borrow and many times they are taking away credit lines. It is hard to get that back once it is gone.

  • Getting a fair price.

Small business find the biggest hurdle for them  is in getting over manufacturers’ price sensitivity. The trick for any small business has been in being creative and finding a niche in which they can compete, and that is in mass customization for these same manufacturers. This is an arena that allows them to get over the price sensitivity hurdle with manufacturers, as they are willing to pay a bit more for a custom product because the end consumer is willing to do so as well  Small businesses also provide faster delivery to the consumer than an overseas manufacturer could, a lesser environmental impact as a result (up to 25 times less), and employment for a demographic who needs it greatly.

4. Regulation

Nobody likes red tape — least of all small business owners with limited time and multiple aspects of a business to take care of. The amount of regulations increase every year with seemingly no account taken by the government on the burden this places on a small business. Hopefully once we start to recover from this challenge the government will cut out much of this to enable business in general to recover.

5. Processes

Small business biggest challenge is being under-resourced. That is not having enough talent and the right amount of capital to do what they  really need to..

From hiring, on-boarding, HR, running finances, doing marketing, paying bills, and actually doing their real work, entrepreneurs and business owners are stretched across many business functions themselves. And understandably, many aren’t experts at every single process involved in running a business. How can we make this process simpler, smoother and even enjoyable?

6. Marketing

Direct, social, online, offline — marketing comes in all shapes and colours. There is a massive opportunity to help businesses tell their story. Learning how the process of marketing has changed and will change once we get going again must be learnt. Whilst closed down is a good time to catch up with all the latest techniques. Marketing strategies can be devised now so that  once business resumes a small business is ready to jump in.

7. Time

Of course, owners are stretched for time. Having more time boils down to two steps: identify the essential, eliminate the rest. But it’s not easy to know what to focus on from the inside and business owners are peppered from all directions with distractions disguised as opportunities. Are there tools and technologies to help them prioritise, focus and find balance in their business.

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8. Research and Development

Given the range of tasks above, it’s no wonder that innovation is often shifted to the backburner, and that’s where the opportunity lies for entrepreneurs and startups.

They find themselves having to spend money on inventory and that money gets tied up. That means they are not selling their product immediately. Therefore they need more money for operations to help turn over the product. It is hard to see a great product that is sitting on the shelf and it is not moving simply because they don’t have the resources to help move it.

Now Take Action.

I have outlined eight problems that any Small Business may encounter. The suggestions i have are for you to consider and then to investigate other sources.

There are many places that have advice can be found but treat all advice with care. There are too many scoundrels who will take your money and give you nothing of value. Beware of promises of instant results, there are no such things. all results need work and dedication to be successful.

So my final words are to be diligent, learn all you can and be ready to be persistent.

You will find success. I know.

4 thoughts on “8 Biggest Problems Facing Small Business’s.”

  1. Dear Ronald
    Thank you very much for your fantastic website that shows the most effective approach to start up your own business which can grow gradually. I hope more people will know about your website and follow your guidance.

    Kind regards,
    Andrey

    Reply
    • Hi Andrey,
      Thanks for the reply.
      If you are just starting out I would recommend that you have a look at Wealthy Affiliates.
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      Regards
      Ronald

      Reply
  2. That’s a great post. People don’t realize but almost all businesses face one or more issues from this list. People should bookmark this and analyze what problem they are facing.

    Reply
    • Hi Prav,
      I hope you are doing well.

      I would like to recommend to you Wealthy Affiliates. You can check it out here.

      https://www.wealthyaffiliate.com?a_aid=5c04bcb3

      This site is FREE to sign up and you get a FREE website, Free Hosting and lots of Free advice.

      Just think how much you can save by not having to get a website and get it hosted. You can stay a free member for life. Of course there is a paid version which you get much more but it is not compulsory to upgrade.

      I am a Premium member because I wanted several websites, with the Free version you only get one.

      Contact me if you have any questions.

      Regards

      Ronald

      Reply

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