Rewarding but tough may be the general consensus established entrepreneurs use to describe owning a small business. When working for someone else, individuals primarily only need to concern themselves with their own role in the company. When a person owns a company, the weight of that responsibility rests primarily and exclusively on his or her shoulders.
Regardless of their industries, small business owners often encounter similar obstacles. A greater awareness of such obstacles can help entrepreneurs ride the waves and be better prepared.
1. Client diversity: Putting all of your eggs in one basket can be an issue when running a business. An obstacle some businesses face is relying too heavily on the support and financial contributions of one client. Diversifying a customer base is the key to growing and maintaining a business.
2. Financial management: Some people are ideas people, some people are customer service people, and others are money people. Everyone handles these tasks differently. Properly managing the finances of a small business is essential to keeping it running smoothly. If it’s possible to hire an accountant or bookkeeper knowledgeable in finance, all the better. However, software can assist novices with keeping the books in check.
3. Burnout: Small business owners often take on extra hours and responsibilities to see their companies grow. Also, owners may not bring on adequate staff in an effort to save money or ensure their vision is adhered to. A lack of help can lead to fatigue and burnout. Trying to go it alone is one of the biggest mistakes an entrepreneur can make.
4. Overdependence on a founder: The business needs to be able to run smoothly even when the founder or owner isn’t on the premises. If the owner becomes ill or takes an extended vacation, operations need to flow. If the company is dependent solely on the owner being around day in and day out, it can staunch potential.
5. Quality and growth balance: Every small business wants to grow and continue to see profits rise. However, when growth starts to impede on the quality of the service or product, it may not be so beneficial. Business owners need to strike the right balance between expansion and quality.
6. Customer service: Business owners have to devote the right resources to maintaining optimal customer service. A happy customer often is a returning customer. Failure to address negative reviews or compromised service will make it harder to succeed.
Small business owners can learn about the common obstacles entrepreneurs face and then devote resources to avoiding them.