Fortunately, for every problem there is at least one solution.
Cash Flow and Financing
Money makes the world go round, but a lack of it can stop any business in its tracks. It would be great that if for every item sold, money would come in on the spot. Unfortunately, that isn’t usually the case as small businesses like other businesses often must extend credit to elicit new business.
Cash flow problems can be overcome by obtaining financing that fills in the gap. Financing isn’t always readily available as bankers want business owners to demonstrate sufficient history to justify a loan. One way around this problem is for the business owner to personally guarantee the loan by either mortgaging his house or putting up other collateral.
To build your business, you need to get the word out. Advertising costs can be prohibitive especially where print and broadcast media are concerned.
Marketing challenges can be reduced, even overcome by building up low-cost or even free options such as social media. It costs businesses nothing to launch Facebook, Google Plus, Linked In and Twitter accounts. The time to manage these venues, however, will cost you and may be best left to an employee familiar with these options.
Small businesses have higher rates of turnover than larger businesses. Employees may start with the company and leave once a better paying opportunity comes along. Employee turnover can be costly and present a drag on the way that the business operates.
Without the resources to battle the bigger companies, small business operators must get creative with their employee retention. Clearly, a strategy can be put in place to try to retain their best workers, perhaps by giving larger raises to these individuals, putting them on a fast track to a promotion or by giving them partial ownership in the company.
Business owners are often tasked with carrying out a variety of responsibilities, perhaps doing the work of two or three individuals over the course of the day. With multiple responsibilities, time management becomes a big factor as does the bodily strength to get everything done.
Solving this problem can prove enormously challenging. What it comes down to is prioritizing tasks and learning to delegate certain responsibilities to other people. It may also mean letting go certain tasks completely, acknowledging that it is not possible to be all things to all people.
You bought your staff new computers and stocked it with the latest software, but after six months of training and use, it is time to upgrade again. Technology can be enormously useful in helping your business reach its goals, but it isn’t a zero sum proposition.
One way to stay up with technology is to lease your computers. After two or three years, you trade up to the latest equipment. You might just as easily give your staff tablets that cost less and still get the job done. You also might consider getting rid of your phone system and handing smart phones to each employee.
Small Business Considerations
The challenges of running a small business will never go away. Rethinking your strategy can pay off, enabling your business to reap greater profits as you contain your costs.
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