What are 5 challenges for a small business?21 May 2021
What do you think are the five biggest challenges facing your small business?
Running your own business is rewarding, busy and challenging. But when you look at how things currently are for you and your business what challenges do you think you are facing? These are our take on five challenges facing small businesses in the 21st century.
There is one main client
One huge challenge is when your business becomes dependent on one client. This can cause issues if the client grows and you cannot scale up quickly to meet their needs or the contract comes to an end and your main source of income is compromised. This is an additional stress that puts pressure on you to try and find new clients, diversify and grow, which can be challenging if all your resources are currently focused on one client.
Growth vs quality
When it is just you working on your business, you are personally invested in each and every stage of a project – so you have full oversight of the quality of what you are delivering. But as you grow it is hard to be involved in every detail. So, you need to balance the growth of the company and maintaining the quality that you provide. One way is ensuring that you recruit a trustworthy team around you and LHT Associates can help you find the right people to maintain quality as you grow.
Also, allowing your business to grow with a trusted team at the core, means that the business will not fall down if you are not present for any reason – be that having a well-deserved holiday, taking a sabbatical or retiring.
Manging the accounts
It is essential for any business to effectively manage their accounts, and not let the paperwork build up and out of control. The days of receipts in a shoe box should be long gone and moving towards paperless accounting can be an asset to your business. Reducing your paperwork, supporting the environment and making your tax returns easier are all big pluses when looking at cloud-based accounting software like XERO or Quickbooks. Perhaps outsourcing this task to someone like us will help you manage your accounts more smoothly and time effectively.
Forgetting about self-care
It is your business, and you are committed but this can mean that you give your all, all the time. Naturally at some point that can lead to burn out and exhaustion. It is important that you do allow yourself, and any employees the chance to rest, reset and focus on self-care and wellbeing. You will see the benefits with increased enthusiasm, productivity and loyalty to you as an employer and well as from your customers.
It is great being your own boss and creating something that works for you, but at the same time it can be lonely as you have no one to bounce ideas off, share challenges or look for inspiration to solve problems. Networking with other business owners can help alleviate that, so why not check out what groups run in your local area and make some new connections.
LHT Associates is available for a free 30-minute discovery call to see how we can help you become more organised and get that to-do list done.