5 Challenges for Small Businesses: What to Expect As Your Company Grows

Everyone wants their business to grow!  If you thought that the start-up phase of your business was tough, then wait until you experience a set of different challenges for growing small businesses that are out there and what they could mean for your company.  Let’s take a look at some of the common challenges for small businesses and you’ll have one more tool that can help you prepare for entrepreneurial success.

Some of the Common Challenges

While no two companies are exactly alike and as a result, won’t experience all of the same challenges, there are a few challenges that are considered to be common for small business owners.

Some of those issues include:

  1. Successful Money Management – In order to get to your goals, you need to be diligent about managing your money when it comes in and when it eventually goes out.  Whether that money comes from loans, your revenue, or anywhere else, successful money management means ensuring that nothing goes to waste.  While you might be able to do it yourself initially, the demands of a growing business will eventually require more of your attention. You might have to hand financial matters off to someone else. It could be something as simple as routine payroll processing or something as involved as analyzing your financial statements. Every aspect of successful money management needs constant attention. Whether this aspect should be handled internally or externally will depend on how you plan to structure your business. You may find that the path might lead to you eventually outsourcing certain aspects of the business or hiring someone internally to handle everything.
  1. Diversity – You want to be diverse when it comes to your employees and your clients. The importance of diversity concerning your business team is straightforward in that it will ensure that you have a wide range of skill sets at your disposal to handle whatever challenges might come your way.  When it comes to the clients you work with, diversity could be a matter of reputation and potential growth on your part.  Every company has demographics that it targets and while you may start with one, expanding your scope could help define your brand.
  1. Risk –  On a general note, it’s important to realize that risk is particularly difficult for small businesses because they stand to lose a lot more than more established companies. Entrepreneur and motivational speaker Jim Rohn once said “If you are not willing to risk the unusual, you will have to settle for the ordinary” and I think that is a saying that any business owner should keep in mind.  When you consider the challenges for small businesses where risk versus innovation is concerned, you need to practice equal amounts of realistic thinking to know when to take the chance and when to step back and reassess the situation.
  1. Retaining Talent – Your employees make up a huge part of your business, so it makes sense that you want to do everything you can to retain the best among them.  Talent retention is among the top challenges for small businesses because having the right people staffing a business can make all the difference when it comes to growth.  Furthermore, in order to foster the company’s growth, you should encourage the professional growth of your employees.  If you show your employees that you are committed to their growth through actions like allowing their input and acknowledging their contributions, then that can go a long way toward keeping them on board.  Job satisfaction can come from knowing that one is making a difference.  By letting your employees know that what they do directly affects your firm’s development and growth, you will encourage them in ways that make them feel like they own part of the business.  You and your business stand a much better chance of success.
  1. Long-Term Thinking – One of the challenges for small businesses is uncertainty of the future; which is why you want to do as much planning as possible.  While I am a strong advocate of establishing a business plan right from the start, you want to leave enough room to allow yourself to adjust those plans as new developments come to light.  Strong foresight is a quality of an effective business leader and so is adaptability.  When you think ahead and determine the direction in which you want to take your business, a big help to you will be planning far enough ahead that you can anticipate changes and adapt accordingly.  You want to think in terms of years; thereby leaving enough of a framework that you have something to work toward and face the challenges as they reveal themselves.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.

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