When it comes to running a small business you may feel overwhelmed by the problems that your small business face and think that you’re the only one in that position. Truth be told the problems that your business face are no different from the ones other business owners themselves have and considering greatest challenges that are facing small businesses now how you react to it could determine the future success of your business. Last year over a thousand small businesses were surveyed by Wasp Barcode Technologies and it was revealed that among the biggest issues facing businesses then 4 of them stood out the most which were issues in increasing revenue, controlling cash flow, hiring new employees and raising profits. Below are some of the ways they interfere with the daily operations of businesses.
1. Increasing Revenues
Making profits is the main objective of every business at the end of the day but you can’t make any without increasing revenue. Your profits depend on how high your revenue is and how much you spend on the cost. Issues in increasing revenue varies because they are very dependent on what type of business you have and sometimes it can’t be traced to one source. When it comes to raising revenue there are 4 important variables to consider which are the process, strategy, structure and people. As sales expert Jim Keenan puts it ” The key to increasing revenue and blowing up your sales organization is aligning 4 critical areas; strategy, structure, people and process. Without having specific, measurable objectives and tactics across all four of these areas, your sales team is not optimized for crushing it. ”
2. Controlling Your Cash Flow
There are many things to worry about when running a business. In general as an owner you want your business’s cash flow to be as stable as possible meaning you keep your expenses low, keeping track of what you spend and collecting what people owe you. It can be difficult doing this as there are many things that can interfere with you maintaining good cash flow for your business but there are many solutions you can take to solve it. There are solutions for things such as budgeting that’s available for you only thing you have to do is figure out what works for you. If you want a list of ways you can manage it you can look through at http://stablemanagement.com/article/thirteen-ways-to-improve-your-cash-flow
3. Hiring New Employees
Finding the right people for the job is struggle for organizations of all type but it is particularly difficult for small businesses because of the competitive offers their corporate counterparts can give to prospective employees that small businesses themselves cannot compete with. Another reason is the cost it takes to “onboard” employees to their business. Onboarding is the process to which employees acquire the skill set, behavior and knowledge to be able to function within the organization. This means spending money on taxes, training, equipment and benefits that could end up costing the organization twice as much as what the position is willing to pay sometimes which is not easy for a business with limited financial resources to do.
4. Raising Profits
The most common issue all businesses have of course is raising profits. Like increasing revenue problems raising profits can happen for a multitude of reasons and the result is the inability to keep up with the competition. In a scenario like this the best way for your business to increase profits is to find areas in your business that you can improve on cost effectively that would give you the upper hand. Innovation is the only solution in this scenario as chances are your competitors might have better resources then you so if you can find a cost efficient unique business strategy that can’t be replicated by other firms in your industry your business can compete with your rivals at a much lower cost of doing business.