5 Challenges Every Company Must Deal With

Starting a small business is one of the most challenging and exciting endeavors one can take. It’s an opportunity to show what your abilities are and to see whether there is a market for your products and services.

However, running a company is always much more difficult than anyone anticipates. There are always competitors that will try to take over your place in the market.

There are also additional expenses that can tend to run higher than initial funds. In order for a small business to survive its first year and become a part of the community, you need to understand your customers and anticipate their needs.

1. Shortage Of Cash

The most common issue that small companies face is the shortage of cash needed to complete day-to-day tasks.

Businesses usually anticipate large expenses needed to get the company going and these get included in the business plan.

However, cash flow is often more important than savings and investing because it’s needed to pay suppliers and salaries.

This can be remedied by a credit line that will allow you to borrow small amounts of money on regular bases.

The interests are higher this way, but those expenses can be covered by the profits if the company is operational and is just having difficulty collecting its bills.

2. Employees

Employees are the most important asset a business can have. They are also the biggest expense most of the time.

It’s imperative for a new company to attract the best employees out there and to try to motivate them to stay and grow with the company.

This usually can’t be done with salaries and bonuses alone, partly because small companies can’t actually offer high salaries and bonuses.

Instead, small businesses need to create a pleasant and comfortable office environment that will give employees a sense of belonging and loyalty.

3. Rules and Regulations

Governmental rules and regulations may sometimes seem like they are created to hold small businesses down and prevent them from taking their place in the market.

It is challenging for a small company to keep up the standards in the industry, but most of the time, these are created to ensure the safety and quality of products within the industry.

For instance, the mining, packing, and food industries should hire a power quality analyser right away in order to make sure that they are compliant with the rules in this area.

This prevents accidents and establishes trust with clients and customers.

4. Client Dependence

There’s nothing more important for a new company than having a sense of security and stability.

This is often accomplished by creating a special business relationship with one particular client or customer.

That means there is always a steady stream of income coming your way, even the markets are changing.

It’s important to note, that this can present a unique challenge as well.

If you’re doing most of your business with one client you’re becoming dependent on them and that can be troubling because someone outside of your control can basically end your business at one point. It’s a fine line to walk on.

5. Marketing Issues

At this point, all companies realize the importance of marketing for a small business. Even the smallest of companies have some sort of marketing plan and an outreach program to find new customers.

The most common problem they face in this department is how narrow or single-minded their marketing channels are.

This is understandable due to the lack of available resources, but it should be something to overcome as soon as possible.

Every business, regardless of the quality of their products, faces some challenges along the way. Planning and knowing your market can usually help you get through them.