Top 4 Challenges Small Business Owners Face Today

Top 4 Challenges Small Business Owners Face Today

Small business owners face several hurdles while pursuing the success of their business. Obstacles faced could be varied, ranging from the rising costs of office supplies to the ever-changing national economy affecting the business. Here are four major challenges faced by small business owners to help you remain prepared to tackle problems as they arise.

Recruiting Staff and Employees for Your Business

Recruiting for small businesses is a great challenge, part of which is owed to the high cost that the process of recruitment entails. Hiring new employees encompasses expenses such as costs of onboarding a fresh recruit, including taxes payable, benefits that the employee is entitled to, training offered, the business lost during the training period, bonuses earned, and other costs to the company.

According to surveys, the total cost of recruiting and onboarding a person is anywhere between 1.5 to 3 times the pay packages offered for the position. Considering the size of the business, small business owners need to make careful consideration before recruiting a new person, considering the investment it requires.

Generating More Profit

For small business owners it is often a hurdle to rapidly increase profits. Small businesses often have as few as ten to fifteen employees. Aiming for higher profits and staying competitive while keeping costs low is always a challenge. Bigger competitors with more resources at their disposal are often better equipped to handle more work, and therefore generate more profit at a greater speed. For small businesses, it is a challenge. What is required is innovation and optimization of available resources.

Proliferating Revenues

Profit margins cannot be expanded unless revenues are increased, or costs reduced. Revenue issues can stem from multiple sources and are often business specific. However, keeping certain fundamental things in sight often mitigates any revenue issues, sometimes even before they arise. A few examples could be building a sound business strategy, structuring the business well, recruiting competent people and optimizing business processes.

Cash Flow Management

Money issues often crop up without a warning sign. Finances are often the greatest reasons of worry for even the comparatively financially secure business owner. From the stalling of client payments to emergency expenditures, you may need a large sum of money to keep your business afloat. In such situations, opting for a business loan or equipment financing is a sure way to secure your business.

In case of cash flow emergencies, small business owners can easily avail business loans from NBFCs such as Bajaj Finserv, which come with a flexi loan facility. This allows you to avail financing as and when needed within your approved loan limit and charges you interest only on the amount withdrawn and not on the entire approved amount.

Some of the worries faced by small business owners are within our control and can be addressed easily with some effort on our part, while others are well beyond our control. It is important for any small business owner to know how to prioritize while trouble-shooting and remain prepared to face any issue as and when they arise.

Also Read: How to Improve CIBIL Score for Business Loan?

 

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