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Guest Post: 5 Biggest Challenges Small Businesses Face and how to Overcome Them

challenges small businesses face

Everyone achieves a great milestone when they start a business. However, maintaining the business is a greater challenge that most entrepreneurs have to battle with. Many standard business, whether large or small are faced with so many challenges.  These challenges include building a brand, hiring the right people, and so on. Although, there are some that are unique to small businesses – ones most large companies have grown out of long ago. Below are 5 of those challenges that small businesses face om a regular basis:

1 Cash Flow

Many businesses find it hard to manage a cash flow. It is ideal for a small business to maintain realistic working capital balances to manage the normal trade cycle. Without an understanding of your cash requirements and particularly where your bank is involved with loans, failure to meet the commitments can easily result in a good business to get into trouble. Get good financial advice and take the time to analyze the business risk of failing to meet cash flow commitments before undertaking any new project. Using online invoicing companies such as Acute Invoice Nigeria is also a powerful way to persuade reluctant clients to part with money.

2 Customers

Many companies are in business because of their customers. Customers are the heart of any business. Without customers and the revenue generated your business is just a good idea. The challenge is to attract, retain and maximize your customers? The key to winning new business and retention of customers is providing not only great products or services but adding a great customer service experience. What strategies will you undertake to achieve these objectives?

3 Team

It takes a team to build a successful business. The abilities that can help you launch a business are not the same as those you need to help it grow. It’s vital not to fool yourself into valuing your own abilities too highly. The chances are that you’ll need to find and hire the best talents to help you build your dream business. You need to learn to build and manage a great team. Reading books especially on leadership skills is one of the most recommended ways to help you build a world class team.

4 Time

Time is an important currency for entrepreneurs. Although, for the average business owner, there are simply not enough hours in a day. All owners are stretched for time. Creating more time means saying no occasionally and focusing on what is essential for success. This is where a smart business owner will engage with an Advisory Board or business mentor to focus on what is critical and what are distractions remembering to always maintain a sustainable work life balance to stay alert and not burn out. Learn to spend time like money. The best way to effectively manage your time is to create a to-do list of all that needs to be done in a day and try as much as possible to say no to all form of activities and distractions that were not budgeted for.

5 Innovation

For a business to grow, they either innovate or die. Although small business owners can be so busy they forget to keep up with current innovations in their sector. When you’re scheduling your week, don’t forget to allocate time to track competitors and undertake awareness-raising activities such as reading (or writing) blog posts. Create Google Alerts, use Twitter hashtags to keep up with what’s trending, and mine the wealth of free, and very targeted online information out there. Staying innovated as a small business owner involves being able to quickly adapt to changes that may occur in your line of business and always seek means by which you can always leverage technology in building a better business.

 

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