Big Challenges For Small Businesses
The world of business is never without its challenges. However, if you run a small business, these challenges can seem a million times worse. In this post, we are going to take a look at the hurdles that impact small companies specifically. So, let’s take a look…
There is only one place to begin and this is with money management. This is undoubtedly one of the biggest challenges that face small companies. Cash flow can be a big issue. If you run out of cash it is going to be impossible for your business to grow. This is why a lot of business owners start out with the founders still working a job, so they can shore up a cash reserve with extra income.
Of course, all businesses are subject to taxes. However, they can prove to be a bigger challenge for small businesses. Whilst large conglomerates may have complicated taxes to face, small businesses often find that taxes place a massive strain on their company and their finances. Because of this, it certainly pays to hire a chartered accountant. Check out accounting packages from QAccounting. By doing this not only will you ensure that everything is handled correctly and above board, but you can be certain that you will be making the most of any tax reliefs as well.
Client dependence is an issue that definitely impacts a large proportion of small businesses. As a small company, it is unlikely that you will be able to accommodate a huge number of clients. Because of this, small businesses are often dependent on a small number of clients. If you are heavily reliant on one client you put yourself in an extremely risky position. Diversification is the key to success and growth. It can be difficult to diversify, however, especially if you have been lucky enough to find a client that pays well and on time. If the client has a consistent need for your product and/or service then this may be fine, nevertheless, it is much more advisable to spread your services across several clients to minimise risk and give yourself the ideal platform for growth.
Balancing Quality and Growth
In addition to the points that have already been mentioned, balancing quality and growth also proves to be relatively tricky. Of course, all small businesses want to grow and get bigger. However, this can have a detrimental impact on the quality of your products and services. You need to try to find the ideal balance, especially as personal engagement and attention to detail tend to be two of the main qualities that make small businesses so successful.
All in all, there are certainly challenges facing any company and when it comes to small businesses there are unique challenges that aren’t felt by other companies. Aside from the four main points raised in this article, there’s also a heavy reliance on the founder, which can be risky, whilst fatigue is guaranteed to impact you and everyone that works for your business – as there will be more pressure.