Top 4 Most Common Small business Struggles
A small business is a dream for many people but can also be a scary undertaking with many risk factors involved. The key is to set up proper systems so your company can thrive. We have outlined how to overcome the top 4 most common small business struggles, no matter the economic climate and outlook.
1. Lack of Capital or Cash Flow
Having limited resources is the biggest challenge faced by most small business owners. Capital and cash flow are the lifeblood of a business, providing for both everyday operations and future initiatives to expand and innovate. These are both essential to the survival of a business.
A solution for many entrepreneurs is to obtain funding through loans to satisfy their capital and cash flow needs.
Once you have a loan, plan to manage your cash flow closely. Assess your product line and focus only on what’s most successful. Watch for ways to reduce costs such as staff, real estate, and other operating expenses.
Keep your eye on the bigger picture. Most businesses are not profitable in their first year. However, the chances of profitability are substantially higher the longer a business is in operation.
2. Recruitment & Retention of Employees
It is crucial to take the time to effectively recruit and make sure you choose the right employees to achieve your goals.
Take the time to think through what skills and capabilities a new employee needs to bring to your company.
Hire for the essential roles you need coverage for first. Then, make sure the salary and benefits you offer are competitive to attract top people. The goal is to not only attract top employees but also to retain them.
Find ways to express their value and your appreciation towards them as their loyalty will hopefully translate to productivity and assist in company growth.
3. Marketing and Advertising
A successful business needs lots of customers. Find ways to get the word out to potential customers. People are spending more time at home, so advertising via online campaigns, social media ads and even text promotions can be used to share your services and loyalty programs.
4. Time Management
Running a business demands that you constantly pivot from long-term strategy to short-term goals and everything in between. Manage your time to prioritize tasks aligning them with the company’s primary goals. Time is one of your most essential business commodities.
Create a to-do list, assign each priority by their importance, and start working away at them. Accept that some tasks will not be completed right away; it’s a part of running your own business.
After a month, analyze your time management and assess where you may need assistance from other employees or contractors.
If you notice the problem is coming from constant interruptions, block your time. Make it a regularly scheduled meeting with yourself to clear time and focus on your priorities.
If you have any questions about business loans and other business services to help get your business started or to keep it thriving, visit our website at Kitsap Credit Union Business Accounts or contact us by phone today at 800.422.5852.