Starting a small business is a serious matter in fact, there are several challenges that you will be encountering. Overcoming these challenges is something rewarding and will surely help you to be successful. By the way, small business is the legal definition of a business enterprise wherein employee headcount is less than 500 and the annual receipts is not more than $7 million. These businesses are usually sole proprietorship partnerships and privately owned corporations. If ever your business falls under this category, proper management is always the right key for your business success.
There are several challenges being faces by small business owners in the country. These challenges include:
1. Workforce needs
With the scarcity of workforce during hard economic times, it has always been a challenge to business owners to look for qualified workers and employees. Lots of people prefer to apply in large companies for security purposes because these people perceive that small business cannot survive during the hard times. What you can do is to make sure that your business projects a stable pasture to those job wanderers specially you are just starting your business in the market.
2. Capital access
You can never start a business without having a capital so looking for a capital to start with is really a challenge. During bad economic times, you may find capital lending in banks to be difficult and interest rates of credits card to soar up. Backing up with the Small Business Administration (SBA) would be advisable in times like these.
3. The power of a business plan
It is known by many entrepreneurs and business owners that a good business plan is a strong foundation of a good business and company. What you can do as an aspiring business owner and entrepreneur is to draft out the best business plan as possible. Your business plan should include the mission and vision of your business as well as its goals and projects.
4. Finance management
One of the most important aspects of capital is finances and money. Once you receive enough capital to start with, managing the finances and bills would be the next step. Getting professional help for handling the accounting and taxes of your business is advisable in order for you to avoid any untoward financial problems.
5. Business growth
Another thing that you need to manage aside from capital and finance is the growth of your business. You may be starting your business but you cannot avoid making it to grow in a fast pace. Take your time and take each step one by one. Always remember that quality of service and products is more important than quantity.
6. The best location
Looking and searching the best spot for your business in a crowded city may be a challenge as well. Getting that perfect place may be easy, but looking for an affordable one is difficult. Business location is also an important factor for the success of your business.
7. Attracting customers and clients
Your customer is the one that will make your business be successful. Before you start your business, you need to think first who will be your customers, will it be young adults, professionals or students. Studying what group of people you will attend to once your business started will definitely help you to find and attract more customers and clients.
8. Business competition
You are not just the person in your area that is planning to start his or her own business. There will always be competitions. Taking a good point of view in the area can help you win in this competition. Just make sure to do it in the right and legal way.
9. The changes and trends on the industry
Another well-known permanent thing in this world, not just in business, is change. Coping up with changes in the industries will prepare you for the inevitable effect. This change may or may not affect your business but preparation will be the best thing for you to do.
10. The legal aspect of your business
Complying with the law and making sure that your business is legal should also be prioritize during the process of starting your business. You wouldn’t want to be arrested or receive subpoenas just because you forgot to register your business with the government. Know also your rights and limitations as a business owner.
Some people got de-motivated every time they face challenges while others become more motivated. Whether you are part of the latter or the former, you can never avoid challenges in starting your own business.