Have you ever seen someone running their business with ease? Very Few! Why? Because one has to be smart in handling the small business problems and challenges.
It is estimated that 40% of small businesses fail in their very first year, 50% of them can’t make it beyond 2nd year of starting their business, they just close down. That’s a sad reality!
Business is a lifestyle of constant tension and pressure but when rightly managed, there is an enormous reward waiting ahead. In fact, many common business problems and challenges are actually fixable.
Here are 10 small business problems that are very common and way to fix them:
This is a common problem for 90% of people out there. You will easily run out of time in this fast-moving competitive world. Running a business is exhausting and consumes more time than expected. Caretaking your small business requires you to manage time very well and be good at multitasking.
Many business owners get stuck working more than their staff. They fear to take any time away from work to relax or go on a vacation with family.
As a result, you may have to jump between tasks, take calls, attend customers, visit the market regularly for purchasing items and much more. In case you don’t make an effort to manage your time, your business will get messed up, doesn’t it?
For eg: If you’re taking too much time in calculating receivables and payables from your customers, the software can do the job better and faster. Use business software like Vyapar instead of doing it manually. It does wonders in saving your time.
If you’re not paying attention to market trends, your businesses may get into trouble very soon. New products enter the market with better quality, designs, price or features. New businesses may come in line with better selling techniques. This is a great way to lose customers and your market share.
Yes, being a small business owner means keeping track of lots of transactions and dealings. Unless you have an accounting degree or background in finance, one of the top business challenges you as a small business owner may be facing is keeping your sales/purchase transactions in place.
3 out of 10 businessmen face loss by not keeping their account books right. Calculating receivables/payables, preparing GSTR reports, checking party balances and many such critical business accounting tasks are painful if you have to do it manually.
Every small business owner will agree to this! Not all customers are prompt when it comes to payment, they give a variety of reasons for not paying you on time.
Some follow different payment practices which disallow them to pay as per your timings, they have their own payment cycles, some customers don’t keep track of their payables, notifying them will become your job. Some customers are in financial difficulty and they really are unable to pay you back. Reduced cash- inflow and late payments to your business is not a good sign of growth.
In any kind of industry, competition can be fierce. It is very common to lose customers to your competitors who have slashed their prices. Lesser price is always attractive to the Indian crowd. This is #1 reason why customers are motivated to abandon the businesses they know and buy products or services from competitors.
Let’s accept it! BIG companies market themselves better. They have better prices. They have a good online presence. They are just one click away. This is the reason why 3 out of 10 consumer orders online from big companies in India. This has become a big threat to small businesses like yours, don’t you think so?
Not all the advice you get is healthy. When you want to make choices for your business, you may need help. Unfortunately, a lot of Indian Businessmen get the wrong kind of help or sometimes no help at all. We are unaware of a lot of Govt benefits, GSTR rules and many more.
Too many times, small businessmen start out with little capital ( their savings!). Business costs often exceed the budget and require them to shut down their business.
4 out of 10 small businesses fail in the 1st year of their business for the same reason.
Difficult to do all this manually? Try using software instead
Indian small businesses usually don’t focus much on marketing due to budget constraints. You may think it is not important, but it is! One needs to do marketing in order to let people know that they exist. Otherwise, it’ll become hard to convince a new customer to close a deal without their name out there!
Cash Flow problem arises when you don’t efficiently work with your accounts or don’t produce enough revenue from your customers. In fact, the hardest challenge to maintain regularity in the cash flow is this. To make sure that you’re operating successfully, you need to make sure that more money comes in and less flows out.
Do you face any other problem in your business Please comment below
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