It takes a lot of moxie and guts to buck corporate tradition and start your own business. For entrepreneurial-minded individuals, going down the road less traveled and meeting challenges head on while developing a new business is exciting.
In fact, the challenges faced by small businesses and large, established corporations are not that different – managing money, paying bills, hiring and retaining good employees, etc., are challenges businesses of all sizes face. However, when just getting off the ground, small businesses need to be prepared with solutions to face these issues quickly.
1. Managing the Money
Starting a business takes a lot of initial and continued investment. Keeping bills, getting paid and managing expenses, such as, paying employees on time is key, and the only way to do so is to build up cash reserves. Having money to reinvest in the company and expand will also be important when you need more people and equipment.
A key challenge in managing money for small business owners is getting paid on time. Sending professional invoices, tracking payments and understanding your cash flow doesn’t have to be a chore or require a professional. Invoice2go’s invoicing app allows you to send an invoice in minutes, accept online payments, gain insights to your business and manage cash flow better. Invoice2go allows business owners to spend less time sending and tracking invoices and spend more time tackling other business challenges.
2. Building a Customer Base
A small business can only grow into a bigger business with more customers. More customers means more money. If your customer base is very small or most of your revenue is generated from one large account, your business runs the risk of losing a lot if the client ever decides to move on. Be sure to cultivate and grow the business relationships you have, tap into your current clients for new ones, and sell and market your business to earn new clients that may be in need of your services or solutions.
3. Hiring the Right People
Small businesses usually need adaptive employees who are able to wear many hats, perform different tasks as the need arises and most importantly, understand the business. With a small operation, a company cannot afford to hire and employ a person who underperforms or refuses to be agile.
To avoid making hiring mistakes, be sure to set clear expectations of what you need from your employee. Make sure to develop a job description that includes the tasks involved, the methods used, job goals and the qualifications needed. Take your time going through the hiring process and avoid taking on the first person willing to answer the ad. Hiring the wrong person could end up being more costly to your business. When you do hire, be sure to check back regularly with your employee to make sure the job description and business goals are still aligned.
With a solid business plan, smart tools, and the right people, your small business can meet and overcome common challenges. Are you a small business owner? Share any tips and lessons you’ve learned along the way with other small business owners in the comments.