Tue 06 Jun 2017 10:06

The Biggest Problems That Small Business May Face

It is important to remember that if you are afraid of problems, it is better not to start a business at all – every project has its difficulties. Every millionaire's business was once at a zero and its owners considered the project as an unsuccessful one - even if this low time was short.

There is no business that never faces problems. We have already written about the challenges that startups can face - Why Startups Fail: The Most Common Mistakes. Small business differs from the start-up in many aspects - such types of projects immediately have a plan for their own development and to achieve independent financing as soon as possible. A startup, in most cases, is a project made to attract outside financing from investors. Read our article Is Your Business A Startup? to understand this difference better. So, if your business is a small business, you should be prepared for certain problems.

The majority of the most successful businesses faced their bad times more than once. But owners believed in their projects and continued to do everything to make the projects happen. The problem is never a verdict. It's just a situation that requires a special attention and steps. It's a challenge. You can and should work with any problem. But in order not to appear in a tiny paper boat in the middle of an ocean, it is reasonable to get acquainted with possible problems in advance.

So, the most common problems are…

You distract yourself from the client

You created a product or service that, in your opinion, was made for a certain group of people. For example, they are home sitting women with a level of family income from upper-medium to high. You decide how, from your point of view, the product should look like, how they will use it and so on. It seems to you that they think the same way like you do. But what if you are a representative of significantly lower financial level? You do everything by yourself, and your potential client never washed dishes in her life, she does not cook at home, and a specially hired person cleans her house. The discrepancy is obvious - you are too far from understanding how a rich housewife with high income thinks, what is her real problem, where she is looking for a solution and what she needs. In this case, there are marketing studies that are carried out by special agencies. You should get a real portrait of your client. Of course, it is much better to initially create a product that will be relevant for you, to become your first and best customer, in this case, you will understand better what your audience wants.

You depend on the client

That problem is one of the most common and painful for small businesses. For many small business owners, customers who regularly buy a product or order a service, who pay in full and at the right time, are rare gifts. Financial experts believe that if one of your clients provides more than half of your income, then you are a contractor to a business relationship more than an owner of an effective business. This situation is most common for small business types with less than ten working employees and partners. Of course, you can and should deal with this situation. It is necessary to think over and form a constant need for an existing customer – a need in your product or service, and also to plan expanding the number of customers and actively connect your sales department (or sales managers) to the development of the client network. In small companies, the owner's participation in sales is mandatory - he does it all the time.

You can't deal with money

Many small businesses stay unprofitable for a quite long time. At best, revenues can cover their expenses - salaries of employees, renting an office, buying and taking care of equipment, paying taxes and fees. According to experts and experienced business owners, before starting your project, which you are positioning as a small business, you need to take care of the financial buffer, which will hedge you in the process of work. The most effective model of small business, as experts say, is a model started with several business partners that have another sources of permanent income. If you count on income and do not invest, it is unlikely to succeed ever.

You do not have enough energy

The majority of small business owners work a lot. Sometimes they work too much. Many of them have another job (or two, or more), that allows them to pay their daily expenses and invest in their new project. Most of them work on weekends. At a stage of the most active development of a business, some owners may not have a vacation for several years. You can think that this will be better - but in fact, work without rest leads to emotional burnout and nervous exhaustion. Your quality of work is significantly reduced and you can't effectively develop your project.

Therefore, regardless of the amount of work, plan your days so that you have at least one day off every week, and at least one two-week vacation (in a row!) every year. This will allow you to recharge and with to come back to developing your project with new ideas and additional energy. Take care of yourself - eat healthy, drink water, meditate, take walks, workout and sleep fully. 

Remember – you are the main resource of your business. Take care of this resource.

© Assiomatica SA


The Biggest Problems That Small Business May Face

The Biggest Problems That Small Business May Face

Posted on 2017-Jun-06

There is no business that never faces problems. We have already written about the challenges that startups can face - Why Startups Fail: The Most Common Mistakes. Small business differs from the start-up in many aspects - such types of projects immediately have a plan for their own development and to achieve independent financing as soon as possible. A startup, in most cases, is a project made to attract outside financing from investors. Read our article Is Your Business A Startup? to understand this difference better. So, if your business is a small business, you should be prepared for certain problems.

The majority of the most successful businesses faced their bad times more than once. But owners believed in their projects and continued to do everything to make the projects happen. The problem is never a verdict. It's just a situation that requires a special attention and steps. It's a challenge. You can and should work with any problem. But in order not to appear in a tiny paper boat in the middle of an ocean, it is reasonable to get acquainted with possible problems in advance.

So, the most common problems are…

You distract yourself from the client

You created a product or service that, in your opinion, was made for a certain group of people. For example, they are home sitting women with a level of family income from upper-medium to high. You decide how, from your point of view, the product should look like, how they will use it and so on. It seems to you that they think the same way like you do. But what if you are a representative of significantly lower financial level? You do everything by yourself, and your potential client never washed dishes in her life, she does not cook at home, and a specially hired person cleans her house. The discrepancy is obvious - you are too far from understanding how a rich housewife with high income thinks, what is her real problem, where she is looking for a solution and what she needs. In this case, there are marketing studies that are carried out by special agencies. You should get a real portrait of your client. Of course, it is much better to initially create a product that will be relevant for you, to become your first and best customer, in this case, you will understand better what your audience wants.

You depend on the client

That problem is one of the most common and painful for small businesses. For many small business owners, customers who regularly buy a product or order a service, who pay in full and at the right time, are rare gifts. Financial experts believe that if one of your clients provides more than half of your income, then you are a contractor to a business relationship more than an owner of an effective business. This situation is most common for small business types with less than ten working employees and partners. Of course, you can and should deal with this situation. It is necessary to think over and form a constant need for an existing customer – a need in your product or service, and also to plan expanding the number of customers and actively connect your sales department (or sales managers) to the development of the client network. In small companies, the owner's participation in sales is mandatory - he does it all the time.

You can't deal with money

Many small businesses stay unprofitable for a quite long time. At best, revenues can cover their expenses - salaries of employees, renting an office, buying and taking care of equipment, paying taxes and fees. According to experts and experienced business owners, before starting your project, which you are positioning as a small business, you need to take care of the financial buffer, which will hedge you in the process of work. The most effective model of small business, as experts say, is a model started with several business partners that have another sources of permanent income. If you count on income and do not invest, it is unlikely to succeed ever.

You do not have enough energy

The majority of small business owners work a lot. Sometimes they work too much. Many of them have another job (or two, or more), that allows them to pay their daily expenses and invest in their new project. Most of them work on weekends. At a stage of the most active development of a business, some owners may not have a vacation for several years. You can think that this will be better - but in fact, work without rest leads to emotional burnout and nervous exhaustion. Your quality of work is significantly reduced and you can't effectively develop your project.

Therefore, regardless of the amount of work, plan your days so that you have at least one day off every week, and at least one two-week vacation (in a row!) every year. This will allow you to recharge and with to come back to developing your project with new ideas and additional energy. Take care of yourself - eat healthy, drink water, meditate, take walks, workout and sleep fully. 

Remember – you are the main resource of your business. Take care of this resource.

© Assiomatica SA