Small Business Challenges Every Founder Should Know
Every year there is a massive number of small business that is launched. But very few individuals are able to maintain this small business. Less than half of these businesses are in fact close shop within the first four years. This should tell individuals how competitive the world of business is. There are many challenges that new businesses face. In this article we are going to look at the different challenges that small businesses face.
The first problem that a small business faces are the single founder problem. More than half of the businesses that are started in most nations have only one founder. It is beneficial when one starts a business by their own. Individuals who start businesses all by themselves are able to implement their ideas all by themselves. However, being a single founder has certain challenges too. When one is alone there is no one to help them with the tasks. This mostly shows up when an individual falls ill. Therefore to solve this problem one should consider having a co-founder.
Most founders of small businesses have the problem of cash flow. Most individuals are not able to make it because they have poor cash management skills. Entrepreneurs should learn to manage their capital in the right way. Either the founders start with inadequate capital in which it burns out before the business starts making revenue. Also, some founders misappropriate business funds when doing business. For instance, some individuals will allocate a lot of work to their office furniture which will leave very few for the most important activities.
Individuals starting small businesses also face the problem of rapid growth. Entrepreneurs now! tend to forget about customer service when they have rapid growth. This is because you will make an assumption that everything is going on well. But most businesses later realize that they are not doing well after they are overtaken by competitors who are keen with product development. Thus individuals should always make sure that they manage the growth of their business. Thus individuals should always make sure that they have this product improvements in their businesses.
Most founders also face the problem of external challenges. Every business has its own set of problems to face. For instance, burglary is one of the most common setback individuals who deal with valuable items face. For web-based businesses, cyber-attack is one of the most common challenges they may face which can lead to massive loses.
Finally the above are some of the about challenges you might face as a business founder.