WHY STARTING A SMALL BUSINESS SEEM HARDEST
Starting a small business
may sound easy considering it’s a “small business”, but the reality is there
are numerous problems that often larger businesses don’t even have to deal
with. Tasks can be overwhelming when only one or two people are running
the business,
and there is no money to pay someone else to fix constantly arising problems. Below are common challenges most small business owners will face.
and there is no money to pay someone else to fix constantly arising problems. Below are common challenges most small business owners will face.
Human Dependence
When you stop running, the business stops running.
If you only have 2 employees and 1 employee becomes sick, what do you do?
You might say hire more people, but that’s another problem. Every person
added to your payroll costs your business more money. And when you do
have someone on the payroll they will expect hours. Putting someone on
the payroll as a backup employee can be costly and most people aren’t willing
to do it.
Employees
The high dependence on a small number of employees
means it is vital to choose the right people. It’s impossible to know if
someone will become flaky and stop showing up for work at some point, but you
should do your best to determine if they will be a good fit. You should
interview employees and do all the necessary procedures before hiring. Once
hired, take plenty of time before giving a new employee big responsibilities. You
should trust them and build a relationship, so that you understand them on a
personal level. This way they will feel respected and value their position at
your business.
Too Much
Even with trusted employees, owners often take on too
many tasks themselves. Sometimes it’s because the money is tight and
that’s the only way to get a job done. Taking on so much leaves the owner
exhausted. Problems of all kinds, from an employee not getting their full
paycheck to the soda machine breaking down during a lunch rush will
happen. As an owner it’s impossible to learn every little detail of the
business without exhausting themselves. There needs to be a healthy
balance between their work, and paying someone else to fix the problem.
This is where money comes in.
Money
The money aspect is what will give an owner the option
to relax for a few days and have another person take over. If the money
is not there, the owner won’t have that option. Small business owners
must either have a large amount of capital set aside or they must have another
source of income like a second job. This is the reason why the beginning
stages of starting a small business are the hardest. Even thorough
planning will not prevent unforeseen expenses in the business. Once cash
is flowing it doesn’t mean a business is successful. An increase in
profit almost always means an increase in expenses, so it’s vital to make sure
you’re staying on the positive end. It’s super important to hire an
account for this.
These are just a few
challenges, but don’t be discouraged. Owning a business can be a
rewarding experience. Many owners wouldn’t trade their way of living for
any other job. You can count on that.
Also
read: Risk and rewards of Entrepreneurship, Challenges of Entrepreneurship, Why young entrepreneurs fail, Advice to African Entrepreneurs, Opportunities and
Knowing your Limitations.
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