Top 3 Challenges a Small Business Owner Makes During Initial Start-up Phase
Updated: Jun 17, 2022
Starting a business can be overwhelming — especially if it's your first one. Your idea, capital, and time all seem to be on your side, but there are still many setbacks to overcome. One stumbling block is knowing what the top challenges you'll have to deal with are right off the bat. These three common small business obstacles will give you some major headaches and keep you up at night — but they don't have to be as difficult as they sound.
1.) Number of clients
A number of clients are just one aspect that you should take into consideration when determining if your business is a "one-man show" or not. You also have to consider your marketing efforts, workload, and the time commitment you have to your business.
If you have a handful of clients to make up the income of your business, then you are an independent contractor than a business owner. It could work if your few clients have a consistent need for your product or service. It is ideal to have a diversified client base in case you have clients that move on.
2.) Money Management
As a small business owner, chances are you'll be stretched thin at some point during your career. This is when money management comes in; hopefully, we'll all have a good cash buffer to fall back on. The buffer should be large enough to get through difficult months without having to dip into reserves.
Having enough cash to cover the bills is a MUST. Small business owners but be either heavily capitalized or about to pick up extra income to save up on cash when needed. It is a challenge to grow a business but running out of cash makes this task impossible.
There will be times in your business career when you need to slow down, step back and re-evaluate. You may find yourself debating on whether or not to make a change in your staff or the product you are promoting because you are tired from doing it all.
Many business owners work more than when they were employees working for someone else. They fear their business will stall if they are not actively participating in the business. Fatigue can lead to rash decisions about the business. Finding peace and relaxation is important to handle the challenges ahead.
Knowledge truly is the best weapon here. Knowing the potential challenges can help you to overcome them and keep your business moving forward.
If you're considering starting a business — whether you have an idea or not yet — don't let these three main obstacles scare you off. There are ways to solve them even if they're trickier than expected, and all it takes is some time and effort. And once they're overcome, you'll be able to progress into the planning phase smoothly and without a hitch. Good luck!
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