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?
✔ The ones who are managing the time righteously are the ones who make a difference. Understand how you spend your time each day, see if it can be done more efficiently. 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. ✔ Pick and choose what’s important, focus on the critical stuff, and get it done. You can delegate not-so-important work to someone who works with/under you. Some business accounting software like Vyapar helps you keep a check on your business even while you are away from it. Just make use of it.
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.
✔ Always keep in touch with your industry and your competition. ✔ Know what’s new, what’s selling the most in the market, what are your customers opting for. ✔ Be updated with all the latest happenings in your industry and adapt to it.
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.
✔Handling business accounts is tedious! That’s why many small business owners look to business accounting software like Vyapar or Tally for help. ✔ Tally is a bit complicated and works only on desktop. ✔ But, Vyapar can be used on any smartphone. This user-friendly app helps you track inventory and cash flow, run reports, estimate taxes, create and send invoices, and more. Be wise! Make use of it.
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.
✔ Before giving credit to any new customer check their background. Give credit only if they have a trustworthy background. ✔ Even if you agree to give credit, set up a credit limit, do not let customers keep overdue with you. ✔ If you sold something and waiting to get paid, send payment reminders to your customers on their unpaid invoices. ✔ Some customers require more attention than others. Follow-up regularly and remind your customers that they have pending payments. ✔ Use billing App like Vyapar to set up systematic reminders before and after the due date. Let this be a standard procedure for these types of clients.
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.
✔ Take a close look at why your business is losing customers to competitors. If it’s about the prices, see what you can do to fix it. ✔ Differentiate yourself from your competitors. Try cutting down the prices or provide better service. ✔ Focus on your positives. List down those qualities your business excels at. Market how your business better than your competition
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?
Solution ✔ Have healthy relationships with your customers. Treat them well. It’s observed that 9 out of 10 customers don’t return if not treated right. ✔ Customer satisfaction should be your priority. ✔ Treat your small business the same way larger, successful companies treat theirs. ✔ If you don’t have an online presence, you simply don’t exist to your customers at all. Mark your presence on Social Media, Google Maps. ✔ There’s no better place than Facebook, Instagram to spread your word. ✔ Buyers have all sorts of resources for gaining knowledge, so it’s harder to convince than ever before if you’re not present online. ✔ Your online presence will get you to new opportunities and markets, a bigger audience and customer base and especially the loyal connections.
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.
✔ Don’t be afraid to ask for advice. ✔ Join business associations, get assistance from FB business group (Visit here – Indian Small Business FB Group), join communities. ✔ Ask for advice only to professionals. Keep in contact with a good accountant, a lawyer. ✔ It’s not a bad idea to get advice from other businessmen just like you. They might have gone through what you’re going through.
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.
✔ Set a budget and stay on track. ✔ Monitor how much you’re making & losing every day. ✔ Running financial reports, tracking expenses, paying bills, and more is critical for your business at least until it becomes stable. ✔ Make informed decisions to your business to avoid losses and wastage.
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!
✔ Try to be everywhere your potential clients can be found. ✔ Show feedbacks from your existing clients. Their feedback and comments are the most reliable source of information on your reputation for new customers. ✔ Use your unique skills for personal interactions to stand out from the crowd. ✔ Each and every customer must be your priority even if they aren’t paying you big. ✔Build trust and credibility with your customers. It will help you retain them.
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.
✔ Monitor your cash flow regularly. Use software to do it, you can easily avoid human errors by doing so. ✔ Cut costs wherever unnecessary. ✔ Lease equipment instead of buying it. ✔ Delay payments to your vendors ✔ Ask for deposits or partial payments on large orders or long-term contracts. ✔ Get paid faster by using digital payment solutions.
Do you face any other problem in your business Please comment below
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