Before we start reviewing the “Ten Most Demanding Small Business Challenges”, let’s review the top three National Reasons why Businesses fail!
- Poor Cash Flow – Too much going out and Not Enough coming in
- Ineffective Advertising & General Marketing Efforts – Unable to solve poor advertising efforts
- Denial – Not admitting there is something wrong with the business
Now, the “Ten Most Demanding Small Business Challenges”
No. 10 – How Much Money is Sufficient in Business?
Most start-up businesses do not have sufficient funds. It is recommended by business consultants to have twice as much of what is determined as start-up expenses. Always have some financial reserves to inject in the business . . . a business should not be in the red.
No. 9 – Is the Bottom Line Really that Important?
As was stated in No. 10, a business should not be in the red at anytime. The Bottom Line is important to watch carefully for any clues of potential business difficulties.
No. 8 – Where are the Customers?
This is a constant concern of its Target Market Analysis. Always have a plan to expand current target markets or attract new demographics.
No. 7 – Are we working too hard?
As a business expands its sales, usually additional expenses may occur resulting in less immediate profits. Sometimes it is related to additional fixed expense purchases. The business owner should make sure that when a business attracts additional clients, the results are generating an increase financially.
No. 6 – Should I Trust My Business Partner?
If a business is managed by a partnership, each partner must make sure that the other partners are carrying equal loads of responsibilities. Sometimes have each partner write a job description and approved by the other partners.
No. 5 – How Important is a Website, anyway?
These days all businesses should have a website to encourage potential and current clients to consider purchasing either on-line or visiting the business for additional purchases.
No. 4 – Can Any Business Become a Franchise?
Before a business can consider becoming a franchise, it must be very successful. If not, most franchisees would be guaranteed failure.
No. 3 – Shouldn’t I be able to do it by myself?
Most entrepreneurs want to provide their clients quality products and services. Some business owners have difficulty of sharing the work load with their employees. Remember the primary responsibility of a business owner is managing the business, not being an employee.
No. 2 – How import is a good Credit Rating?
It is important to have good credit as a business owner. This is particularly true if the owner needs to obtain a loan.
No. 1 – Should I have a Business Plan?
A well written business plan by the business owner is a must. You can seek advice but the owner should write the business plan. The business plan becomes a guiding “road map” for the owner. It should be reviewed constantly by the owner to make sure the business is “on target” with its business goals and objectives.