Running a small business has become a huge challenge in this time as these businesses are required to do too much with very less amount of resources they have available with them. Additionally, they are faced with huge competition by giants in their industry. In this time of chaos, small businesses find it very difficult to survive and operate, let alone thrive. Let’s discuss the challenges they face in detail and possible solution for each of these:
- Shortage of finance: Shortage of finance is one of the worst things to have when running a business. Small businesses have a limited amount of financial resources, they have to make the ends meet with this limited amount of finance they have on hand. For doing this, however, they have to miss out on many opportunities which they are unable to pursue due to the lack of financial resources. In many cases, they aren’t even able to pay the basic expenses to keep their business running which pushes them towards closure along with time.
Possible solution: Small businesses should make the use of technology to reduce their expenses furthermore multiple small businesses can form mergers to establish a huge organization which will help these combat the competition they face. Even if they don’t merge, they can join hands to help each other.
- Lack of time and skills: Small business owners have to perform many tasks to keep their business running. They need to answer the phone, deal with customers and vendors, do the accounting work, as well as a bunch of other activities with a limited amount of time and skills they have. They become a jack of all but master of none this way and the quality of these tasks is mediocre this way.
Solution: Some of the tasks could be outsourced to other organizations offering such services, this would give the small business owner more time to focus on his core business operations.
- Lack of knowledge: Small businesses lack the knowledge possessed by large businesses. This knowledge is a keen necessity for businesses to survive in this age.
Solution:Small businesses should make the use of information available on the internet to make themselves more competitive. Furthermore, small businesses can exchange information with each other to neutralize this limitation.
- Recruitment of suitable employees: Small businesses find it very difficult to hire the right candidate for their organization. This mostly happens due to lack of expertise in performing this activity.
Solution: Human resources operations such as recruitment could be outsourced to the experts so that the best employees could be hired for the organization.
- Finding customers for the business: This seems to be much easier when you have a huge well-reputed brand, however, for small businesses this is rather difficult as they don’t have that much brand awareness among the customers.
Solution: Internet could be leveraged to generate new leads for the business. Platforms such as social media and the company’s own website could be used for this purpose.
Conclusion: The survival of small businesses nowadays depends on making not only the right decisions but also smart decisions for their organizations. Although they face a lot of challenges they can neutralize much of these challenges and use them to their advantage if they possess the right knowledge. If you’re a small business owner, you can buy logo design today with up to 80% discounts by us.