The Five Biggest Problems All Small Businesses Face Comments Off on The Five Biggest Problems All Small Businesses Face
Let’s face it, small businesses face an array of challenges that large, well-established firms simply don’t. It takes a lot of courage and determination to build and maintain a small business into a thriving enterprise. No matter what specific field you’re in, odds are that you have, or will face some of all of these challenges. Sometimes, they come for you individually, but often, you face several of them in tandem. If you’ve been lucky so far, here’s what to keep an eye out for:
Access to Capital
While the big, well-heeled companies might not have much trouble attracting investment dollars, smaller companies that deal in cutting-edge tech and/or services aren’t so lucky. That money is essential to fuel growth, but finding it, and more importantly, finding it without too many strings attached, is a constant struggle when you’re small.
Getting Paid On Time
This one isn’t unique to small businesses, but smaller firms pay a steeper price than larger ones do when the customers they do business with don’t pay their bills on time. That’s simply because smaller companies tend to have less of a cushion to ride out a rough patch when several key people you do business with don’t pay on time in a cluster. What might be seen as a bump in the road for a giant corporation is a matter of life or death for a small outfit.
Finding the Right People
Again, this isn’t absolutely unique to small companies, but it presents a much greater challenge for them than for the well-established firm operating on multiple continents. Your ability to reach the top-tier talent is going to be limited to your own personal network of contacts and whatever dollars you can spend on advertising. It’s entirely possible that you can find a great candidate within that sphere, but understand that no matter how you slice it, you’re going to be looking at a smaller pool of potential talent than your larger rivals will have at their disposal.
Identifying Who the Buyers Are
This can be an especially vexing challenge if you’re working on the frontiers of technology, because often you’re designing goods and services for a market that doesn’t quite exist yet. Trying to figure out who those buyers are or will be can be a monumental task for any company, but trying to do it on a shoestring budget can make that monumental task orders of magnitude more difficult.
Almost everything in small business is a tradeoff. Invest what dollars you have here, and you don’t have any to apply there. Because of that, savvy business owners are always on the hunt for high-impact, low-cost options for everything they do, marketing included. At the end of the day though, no matter how great your product or service is, if nobody knows you exist, you’re not going to sell anything. That’s the challenge, and it is a constant in the realm of small business. That’s why it’s so crucial to pay attention to how your various advertising vehicles are performing and to be quick to cut the ones that aren’t pulling their weight.