Small businesses are all bound to face hardships at some point or another, especially when just starting out. Knowing how to recognized and handle these situations is key in order to overcome them and make sure your start up will be successful. Nothing is easy when starting out, this makes it especially difficult to realized when something is seriously wrong.
Investopedia has a great article showing 5 of the biggest challenges facing small businesses. From this article I think that two issues talking about dependence are some of the most important.
Being too dependent on a small number of clients is one of the biggest issues facing small businesses. having a small amount of large clients that make up large percentages of your companies revenue is a very risky move that can have devastating impacts. If you loose any of these costumers, that alone could send your business in a terrible direction. Obviously having more clients is better than few but making sure that your company is not dependent on 1 or 2 clients is a giant step in the right direction.
Founder dependence is another problem common in small businesses. If a business cannot operate day to day without its founder or founders that business has little likelihood of success. Businesses need to be independent enough to make day to day decisions without founders. This problem seems like it would be easy to fix with the founders giving more responsibility to employees. However, many business owners feel the need to have their hands on every part of the business. This can be a difficult habit to break.
No comments:
Post a Comment