Statistics show that 50% of small businesses struggle to survive past their fourth year. This only shows the reality of how hard it is for small companies to compete for survival in the business industry.
It’s already a well-known fact that starting a business is no easy feat, more so, managing it to endure the competitive nature of the trade. There are a lot of challenges that a small enterprise struggles with on a day-to-day basis.
So, if you’re starting your own company, it’s best to get a thorough concept of the challenges you’ll have to face and overcome to achieve success.
The biggest obstacle a small business usually faces is the irregularity of cash flow and investments, which often results in unsteady footing. Often, small business owners make huge risks in investing their own money in the hopes of successful return of investments in the end.
However, the reality is that there’s no guarantee that you can get your money back at all. And with a limited amount of money to back you up, your small enterprise is destined to fail without funding opportunities.
How to Fix It: Upon the establishment of your company, it’s best to consult with an accounting firm to help you out with financial and accounting matters. These types of organizations can help you chart contingency plans and iron out financial irregularities. You can also ask for bookkeeping support and other types of services, so you can take tabs on how your company is doing financially.
Ineffective Marketing and Advertising
Because of this, some struggle to hit the target sales margin they have initially set. This poses a great deal of problems since the firm’s funds will be depleted without income from sales.
How to Fix It: Since your company has limited resources and funds for launching advertising campaigns, go for the digital approach in marketing instead. This is cost-efficient. Furthermore, the internet has a wider scope and reach compared to other advertising mediums.
Because a small company is often pressured to fill in vacant positions fast, there are instances wherein proper screening processes are neglected. While having one or two incompetent employees can be manageable, it should still raise some concerns in the way you manage your hiring pool.
Also, as a business owner, you should understand the importance of hiring competent individuals especially since your company is still in its most vulnerable point.
How to Fix It: Regardless of how much you need to fill in a vacant spot, it pays to get to know your candidates before hiring them. It will also be wise to have a cultivated team already way before you even start your own company. This will ensure that you can trust your employees to do their jobs without any problems.
It’s true that small businesses usually face what seem like simple problems that can prove to be fatal in the long run. However, this doesn’t mean that small companies easily crumble at the slightest touch. With the right contingency plans and solutions, even the smallest enterprise can survive in the competitive world of the business industry.