The 3 Top Challenges Small Businesses Face — And Their Solutions
Did you know that there are 28 million small businesses in the country? Or that 22 million of those are just one person, and more than half of those small businesses are home-based?
So what are the common challenges these small businesses face?
1. Not enough time
2. Not enough people / low productivity
3. Not enough cash flow
Not enough time
Time is one of the most overlooked factors for success by small business owners! Often, they:
Wear too many hats
Try to do everything themselves
Don’t use their time efficiently
Lose focus on what matters most
You can save at least 2 hours a week by putting systems in place. For example:
To get more done in less time, look for ways to streamline your business operations.
To attract more customers, you can outsource your marketing needs.
To be able to make smart business decisions, you can outsource your accounting needs, so you can always have up-to-date financial information.
Helpful tip: Start by writing down what you spend your time doing. Is that something only you can do? If not, you should look into delegating and outsourcing that.
Not enough people or low productivity
Even if you have a great product or service, not being able to manage your business can cut into your profits.
If you don’t manage your time well, you are lowering your income per time spent working.
If you don’t manage your money well, you won’t be able to pay the right people.
If you don’t manage your people well, one bad employee can have a negative effect on everyone else.
If you don’t track your productivity, you are in the dark about your goal progress and won‘t be able to maximize your potential.
It’s time to talk strategy. Here are a few of our favorite ways to increase productivity and improve work-life balance:
Set aside the busywork for a moment. Instead, take time to set performance goals for you and your employees.
Celebrate your achievements! Make sure to reward the people who are helping your business grow. At the same time, make a plan for what to do if your productivity goals are not being met.
Don’t have the money for the right employees? Consider your options, such as offering commission pay, bringing in a business partner, or outsourcing some things, thus paying for only what you need when you need it.
Helpful tip: Think about this from a different perspective: spending time and money to find the help your business needs isn’t an expense, but an investment in your business’s future.
Not enough cash flow
Cash flow is one of the major causes for business failure; cash flow problems can lead to:
Not enough sales or too many receivables
Money being tied up in inventory
No clear picture of who owes what
Slow payment processing
Bring your business into the 21st century! We live in a technological age, and there are tons of awesome digital tools available to enhance every part of your business.
A cloud accounting system, set up properly for YOUR business, can keep you on top of your receivables, as well as make it easy for your business partners and your bookkeeper/accountant to communicate.
A proper inventory management system can help you find the right inventory count balance for your business, which will free up your cash flow and reduce inventory losses.
By offering credit card and electronic payment processing, you can get paid up to 3 times faster than by check!
Helpful tip: When choosing your accounting software, your point-of-sale system, and your management/productivity tools, look for those that complement each other or those that can work together. Doing due diligence when you’re choosing stuff will save you lots of time later.
If you can relate to any of these problems, we can work with you to put a system in place and manage the financial side of your business. We work with profit-oriented small business owners who want to spend less time working in their business and more time growing their business.
Sound like you? Contact us today for your free consultation!