Questions Business and Entrepreneurship

What challenges will I face while running a small business?

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Yadu Prasad

Do less with more focus

Being a businessman is not an easy task, with tremendous competition in the business sphere; only the survival of the fittest is possible. If you are an aspiring businessman, then you might face several additional problems like building a brand name, gaining the trust of the customers around the globe, proper knowledge about different business models and necessary ways to implement the same, etc.

In this module, we’ll be discussing some of the problems that you might face while running your business. 

·         Health care and regulation
It's important to make the necessary arrangements to ensure the proper health of their employees. The rate for Health care policies is rising at a tremendous rate, and it is becoming difficult for the business owners, especially the owners of the comparatively smaller businesses, to manage their overall revenue.

·         Managing cash flow
Cash flow is very crucial for the survival of the smaller business. The businessman/entrepreneurs face challenges while paying the employees and managing the overall budget simultaneously. Problems become more when there’s a delay in payment from the customer’s side even after the delivery of the products. Getting a small business loan may give you relief in such cases. You just need to be cautious and apply for the right one for your business.  

·         Government Regulations
With each passing year, the regulations imposed by the government are becoming tighter and heavier, with their regulations. Regulations like the Clean Air Act require the use of proper vehicles and machinery to prevent the release of harmful gases and chemicals that might cause air pollution and also damage the ozone layer. These regulations are no doubt very essential but to implement these a huge revenue is required, which can be a big challenge for smaller businesses.

·         Income Tax 
Every year the rate of income tax is also soaring sky high, and it is becoming a problem especially for the smaller businesses to keep pace with it.

·         Time management
The smaller businesses hire a relatively lower number of employees to manage the overall budget. As a result of this, the workload on individuals increases (same for the business owners who have to perform multi-tasking), and time management becomes difficult. Moreover, due to proper time management, the overall quality of the products manufactured might get compromised.

·         Staying hungry (passionate)
The businessmen and entrepreneurs will be facing several setbacks during the initial establishment period. Most of them easily crumble under pressure and give up. But it is essential to stay passionate even during those crisis periods, as they play a very essential role in shaping the growth and future of the business.

Airtract

Harshita Joshi

Tagline Not available

Whether you’re thinking of starting a small business, or in the first few years of operation, here are common problems we’ve all faced at some point in time.


1. Cash Flow Issue

Money problems are often the ones that entrepreneurs are most afraid of and for a good reason. There are a lot of incoming and outgoing transactions that you need to take care of in order to sustain your startup. At the same time, you have to manage all of that whilst meeting deadlines. 


2. Automation Tools

Finding the right automation tool for your business is a huge task. Automated online invoice software like Invoicera helps individuals manage the entire payment process, from gathering data to creating and sending bills. The system contains essential billing elements such as data entry and authentication, billing codes, payment tracking, and security.


3. Avoiding Burnout

If you are a small business owner, you probably want to do everything by yourself. You knew your product or service, you can do it quicker and better than anyone else.


4. Adaptability and Extensibility

Since data is generated by or managed within disparate enterprise applications, such as the product-usage information required by SaaS organizations, it’s essential that your billing system can interpret structured data from multiple sources. Known as mediation, this often overlooked activity is critical to normalizing data, removing unnecessary usage records, and routing the required information for rating and billing.


5. Not Diversifying Client Bases

I want you to take a good, long look at your client list. If you have any clients who are responsible for more than half of your business income, it’s time to a) generate more clients or b) work better deals for your other clients. 

Airtract

Jordan Jose

Tagline Not available

Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are a lot of challenges faced by small business owners while operating their business. Therefore, a proper strategy & plan helps the business owner to deal with every challenge.


Here are some of the common challenges faced by the small business


  1. Cashflow Management - A smooth financial flow in the business commits the growth of the business substantially. But, inappropriate cash flow management can affect the business's financial growth. So, understanding cash requirements, inflow, and outflow are important. With the technology developing, there are a lot of online billing software options for tracking payments and expenses, managing cash flow, creating invoices, and so on.  Also, it always reminds your customers for faster invoice payments. With the right strategy, you can overcome cash flow issues.
  2. Low Productivity - Low productivity causes a ripple effect of inefficiency in the organization. Beginning with lowered team spirits to a team of unmotivated employees, eventually, it leads to delays in meeting deadlines. Productivity essentially means doing more in less time. It is essential to boost the productivity of the employees so that they can work with full efficiency.
  3. Poor Connections – For every small or startup business, making a valuable connection & communication is essential. But, small businesses no matter how hard they try, are somewhere incapable of maintaining required coordination & communication successfully.
  4. Poor Experience and Skills - Nobody is perfect, hence it is important to upgrade the production methodologies consistently to understand the competitors, target market, business trends, branding, etc.
  5. Inaccurate Finance & Account Management - One of the vital parts of small business, is the practice of accounting. Inaccurate accounting leads to disruptive cash flow. Therefore, it is important to track all expenses, invoices, dues, etc. for proper business financial management. You can also automate these processes using invoicing software to make these tasks easy.
  6. Time Management - Time is money, especially in small or start-up businesses it is counted at the growth level. A scheduled picture of "what to do and when to do" makes it easier to process the production without any loss. Effective time management strategies can be the turning point of business for profitability.

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