WHAT ARE THE CHALLENGES FACED BY SMALL BUSINESS OWNERS?

The word “Challenge” has today not only being limited to the English Dictionary, hence a word that you and I hear most often in the corporate world. Everything you do has challenges, in specific to business; challenges are present irrespective of the size and nature of your organization. It could be for organizations that are working ways to set up/ improve business, competition from other small business within the similar industry and etc. Have you come across such instances? Actually a business whether large or small without a challenge would be simply too boring to run, don’t you think so?

So, what exactly are the most common challenges faced by small businesses? Here are few of the most common:

• Dependence on clients – if majority of income your business generates is through a single client, you are in a problem. What if the client decides of not purchasing from you? What will you do? Remember, you need to have a portfolio of clients who buys products/ services from you, this aids to spread the risk of losing one or more clients.
• Cash flow management – money management is a challenging task for anyone irrespective if it’s for an individual or a business. Hence running out of necessary cash to fund your business could be a serious problem if proper management of cash is not undertaken. Therefore small businesses must be highly capitalized or should be able to locate necessary cash when a need is arisen.
• Attracting potential customers – this could be a very difficult and a costly approach for small businesses if you are looking at promoting via television, radio, print ads etc. due to the limited budget you will have in hand. The best way small businesses could attractive potential clients is by making the best use of your store and focusing on relevant demographics to achieve a return on your investments