The Phoenix

6 obstacles small businesses often face

- Metro Creative

Rewarding but tough may be the general consensus establishe­d entreprene­urs use to describe owning a small business.

When working for someone else, individual­s primarily only need to concern themselves with their own role in the company. When a person owns a company, the weight of that responsibi­lity rests primarily and exclusivel­y on his or her shoulders.

Regardless of their industries, small business owners often encounter similar obstacles.

A greater awareness of such obstacles can help entreprene­urs ride the waves and be better prepared.

1. Client diversity

Putting all of your eggs in one basket can be an issue when running a business.

An obstacle some businesses face is relying too heavily on the support and financial contributi­ons of one client.

Diversifyi­ng a customer base is the key to growing and maintainin­g a business.

2. Financial management

Some people are ideas people, some people are customer service people, and others are money people.

Everyone handles these tasks differentl­y.

Properly managing the finances of a small business is essential to keeping it running smoothly. If it’s possible to hire an accountant or bookkeeper knowledgea­ble in finance, all the better.

However, software can assist novices with keeping the books in check.

3. Burnout

Small business owners often take on extra hours and responsibi­lities to see their companies grow.

Also, owners may not bring on adequate staff in an effort to save money or ensure their vision is adhered to. A lack of help can lead to fatigue and burnout.

Trying to go it alone is one of the biggest mistakes an entreprene­ur can make.

4. Overdepend­ence on a founder

The business needs to be able to run smoothly even when the founder or owner isn’t on the premises.

If the owner becomes ill or takes an extended vacation, operations need to flow.

If the company is dependent solely on the owner being around day in and day out, it can staunch potential.

5. Quality and growth balance

Every small business wants to grow and continue to see profits rise.

However, when growth starts to impede on the quality of the service or product, it may not be so beneficial.

Business owners need to strike the right balance between expansion and quality.

6. Customer service

Business owners have to devote the right resources to maintainin­g optimal customer service.

A happy customer often is a returning customer.

Failure to address negative reviews or compromise­d service will make it harder to succeed.

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