There is a reason that many people will never become a small business owner. Handling taxes, dealing with stress, hiring employees and obtaining the right licenses takes effort. For many people, it is far easier to punch a time clock and kick back at the end of a long day. When you run a small business, you are on the clock at any time of the day or night. No matter what happens or when it occurs, you are the one who ultimately has to figure out how to handle each crisis. To be successful, top entrepreneurs learn how to handle challenges in small business start ups.
The 10 Challenges You Face When Starting a Small Business
1. Remembering the Big Picture
You are no longer just an employee. You can’t buckle down, focus on the project at hand and move on. You have to remember the big picture as well as the small details. Otherwise, your company will lose sight of where it is going and how it wants to get there.
2. Money Handling
Another one of the challenges in small business is money handling. You know how to make the perfect gizmo or provide an excellent service. Unfortunately, you have to know how to handle your revenue and costs as well. You have to figure out how to make a business plan that brings in a sustainable cash flow. Garnering bad debts or being terrible at collecting payments can end up harming your company’s bottom line. In addition, you have to know when the time is right for equipment upgrades or expanding the business.
3. Transitioning From Savvy Entrepreneur to Business Owner
When you are running a company alone, you have a lot of room to determine how you work. Once you start hiring additional employees, you have to learn how to manage them and hire the right team members. In addition, you will have to learn how to conduct branding, marketing and financial management. You probably won’t be able to hire someone for these tasks in the beginning, so you have to become a jack-of-all-trades.
4. Tough Decisions
Until you close your company or sell it, you are the person responsible for each decision. A decline in revenue may mean that you have to decide which employee is laid off and which family goes without dinner. Your decisions affect the lives of every customer and employer, and it is a great responsibility to bear. Some of your decisions might not be the right ones, but they are an opportunity for you to learn and grow.
5. Hiring, Training and Firing Employees
Hiring and training employees is one thing. Delegating is an entirely different matter. For your business to grow, you need other people to do the work. Finding smart workers is hard, but letting someone else take charge of a project can be even harder. You have to be good at hiring and training workers so that they can take over some of your tasks. You must be able to motivate the team and be willing to fire someone if they are not the right employee for your company. Leadership is a skill, and it takes time to learn it.
6. Work-Life Balance
You have a dream that you want to put into action, but you still have a life to live. One challenge in small business is learning to relax. You need to put in extra work to get your business going, but you are also a human being who deserves a bit of time with your family. Your business is important, but you have to learn how to delegate tasks so that you can spend time relaxing with your loved ones.
7. Time Management
Being your own boss is rewarding, but it can also feel like a nightmare. Many people have spent their entire lives working for other people, so being your own boss may be an entirely new experience. This new role requires time management, responsibility and commitment. You are the only person who will tell you to put in more work before a deadline, so you have to have excellent motivation and time management skills.
8. Stay Enthusiastic
After a 16-hour day, you probably won’t feel as enthusiastic about your business idea. This is normal., but it is also something that you need to work on. Your motivation and enthusiasm keep the business going, so you have to learn how to recharge and return to the office with renewed energy levels.
9. Start Delegating
Delegating is one of the most important skills for small business owners to have. You have to be able to give other workers the ability and responsibility to do the work. Otherwise, you will never achieve a good work-life balance and your business will suffer.
10. Handling Risk
Another one of the challenges in small business is dealing with risk. Many people avoid running their dream business because they do not want to risk their money, time or career. A number of small businesses fail in the first year, so this is an understandable fear. You have to be able to stomach the risk and focus on your business if you want to be successful. There are also ways that you can lower your risk by learning more about running a business and ensuring that you have enough capital to support your company.