Starting a small business is a huge achievement and challenge for the owner, but maintaining it can be even more difficult. While small businesses face many of the same challenges as their larger counterparts, they also face their own unique challenges. Here are three of the most significant challenges facing small business owners today.
- Client Dependence
Many small businesses start out depending on a single client to survive. Diversifying the client base is vital to growing a business, but it can be difficult. This is especially true when the client in question pays well and on time. For many small businesses, having a client willing to pay on time for a product or service is a godsend. The problem is that by having only one client, you and your business are carrying a huge risk. While this can work out in cases where the client has a consistent need for your product or service, it is generally better for a business to have a diversified client base to pick up the slack when any one client leaves or spends less.
- Money Management
This is a tough issue for most small business owners due to the push/pull of having to pay bills while draining capital to get the business off the ground. Many owners must either be heavily capitalized or be able to pick up extra income to reinforce their cash reserves as needed. This is why many small business founders start out by working a job and building the business simultaneously. While this split focus can make it difficult to grow a business, running out of cash will result in there being no business to grow.
- Fatigue
Starting a small business is one of the most difficult and exhausting career moves a person can make. The hours, the workload, and the pressure can wear down even the most passionate entrepreneurs. Many small business owners end up working much harder and longer than their employees. Fatigue and burnout can lead to bad judgement in making business decisions, or even a desire to give up on the business entirely. The challenge for small business owners is achieving a healthy work-life balance while maintaining the effort necessary to start and grow a business.
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