Starting a business is undoubtedly a big challenge, but once you see the business take off the ground, stay prepared for the next challenge of maintaining the momentum and making it grow. Many challenges that entrepreneurs face when starting a business are quite common, like arranging for finance, building a strong workforce by hiring the right people, brand building, etc. But some challenges that small businesses face are typical to the business sector, which makes these challenges unique, observes Michael Giannulis. What are these unique challenges of small businesses will become clear ongoing through this article.
For Michael Giannulis, money management is critical
While money management might seem common to all businesses, it is a bit special for small companies that rely solely on the business challenge income or revenue to maintain cash flow that makes the task look tightrope walking. No matter how skillful you might be in keeping accounts, as an entrepreneur, you will have your hands full with too many things. It makes perfect sense to seek professional help in maintaining the accounts and manage money better. Accounting problems can hinder business growth and professional accountants, or financial experts can help in navigating the business smoothly with better control over finances.
Worries about accounts receivables or receiving payments against bills. On-time is among the biggest concerns of entrepreneurs who go through hard times in maintaining smooth cash flow. It is a bane for small businesses that it tends to become too much dependent. On one single client who makes timely payments besides giving good business.
This approach defies the basic tenets of good business practice that revolves around maintaining a diversified customer base. Too much dependence on a single customer or a few of them is not a good sign. As it can lead to problems that can stifle business operations and also prevent growth. It creates a scenario in which your role as a business owner gets diluted. And you become a sub-contractor of the lone customer that could expose you to the risks that the customer faces. If the customer does not have stable challenge requirements, it could pose further risks.
Dependence on the founder
Creating a hierarchy in the business administration is critical to avoid an excessive challenge. Dependence on the entrepreneur who is also the founder of the business. This will ensure that the business runs smoothly for some time when the owner is away. Creating a business organization by delegating responsibilities as well as some of the decision-making powers. At various levels will help to lessen the dependence on the owner or founder. This will help avoid the business turning into a one-person show, which is dangerous and can stall business progress and growth.
Running a small business is a stressful experience for many challenge business owners. Who work for a prolonged period at a stretch, and the thought that their absence could halt the business adds to the stress. They fear that reducing their working hours. Could adversely affect the business performance, and overworking results. In fatigue that leads to rash decisions, and that can negatively impact the business.
Achieving business growth and also respect for quality over quantity are the pillars of success for small businesses.