We are in 2020 are there is strong competition not only in Business but surviving in the business as well. The most affected businesses are startups and small businesses. We often hear invest more to earn more but that is not entirely true. Also improving financial growth for the company is not done by luck it is pure hard work so entrepreneurs need to go to the root of the problem, understand them, and then find the solution. This article will help the business people to see which challenges are faced by small business and how to overcome them.
Investments are needed whether it is a small business or SME. For growth and business expansion business owners are continuously looking for investments. If you’re not growing then you’re not earning. But receiving investment is no easy task in whichever stage the company is. The small business owner needs to pitch a business plan to investors in which they can demonstrate the business idea, the business model of the business. The challenge here is preparing a good research business plan and also mention the plans which will create more trust among the investors. Thousands of angel investors’ websites are very keen to invest in the business to make sure to create a business profile that will attract more investors.
2) Struggle in maintaining healthy cash flow
Small businesses are always struggling in maintaining cash flow. Because without cash you have no business. Therefore a balance needs to be made between payment of employees, rent, maintenance of infrastructure, taxes, vendors, etc. Because of not maintaining cashflow small business ends up selling the business or shut down the business. The First 3 years are the most important period for any startup, if any startup pass these first 3 years they are more likely to go ahead and be a successful organization.
There are certain ways in which small business can not only maintain but improve cashflow:
– Offer cash discounts if payment is done early
– Small business can lease the property rather than buying a new place
– Offering various types of payments which will help to receive payment early.
– Prepare interesting ways of pricing. Because experimenting results in growth.
Well, we are in the 2020 era where the internet has taken over traditional business. If the business is visible on the internet then only it exists. The challenge where the small business face in Marketing is the well-established brands is promoting themselves so aggressively that they are trying to keep all attention from consumers. Small business cannot spend that money on Marketing. The most active social media channels are (Facebook, Google, Instagram, Linkedin). The good thing is that there are certain social media tools which are free of cost and can deliver you results.
SEO can be used to improve the site ranking which includes writing content that is relevant and well researched. SEO sometimes single-handedly helps in ranking websites if the website is of niche category and it is completely free. There are websites and tools which are a free and small business must start with these:
– Canva, Unsplash (Royalty-free images)
– Ubersuggest, Google keyword planner (Keyword suggestion, keyword volume, traffic statistics)
– Hootsuite (Post images on social media in 1 click)
– Grammarly (Correct grammatical mistakes, punctuation)
– Hunter, Snov.io (Get emails of people)
4) Increase in Interest rate
The one challenge which is common and troubles small business is the rise in interest rate. Due to rising interest rates securing funding has become more difficult than the previous year. As managing cash flow is already a challenge we have seen above, the small businesses are in fear that how are they going to invest in low-cost funds to increase business growth. Small business usually does purchases on credit that’s why the interest rate is always a challenge.
The world is full of uncertainty to it is better to prepare for everything. Overcoming some common business problems needs experience and education, therefore with experience entrepreneurs are always prepared. So before entering into business or expanding business there should be clarity for the challenges which will occur in the journey. Small business data seems very frightening but if you’re prepared then there is no stopping and that business is set to reach new heights of success.