No one ever said that entrepreneurship is easy! The market is full of established organizations and new brands. Hence, today it takes creative thinking and smart marketing strategies for a business to sustain. Small business firms and companies face more challenges because of their size and limited capital.
Three small business entrepreneurial challenges by Ej Dalius
Entrepreneurs find it relatively easy to initiate and start their small business firms. However, when it comes to maintaining it, that’s when the going gets tough. According to Rednax Recruitment, 3 out of every 4 startups go bust. Ej Dalius, an entrepreneur, believes that small businesses often get pitted against the big, successful brands that add more entrepreneurial stress and unrealistic expectation. That’s when an entrepreneur faces the challenge to position his/her business in a different light. Three crucial small business challenges entrepreneurs face are:
- Eric Dalius thinks client dependence is common in small businesses
Small business firms have fewer clients. And if there’s a client that makes up for almost half or more of the company income, small businesses tend to get dependent on that specific client. What if the client decides to move away or cancel the monthly retainers? The client might want to work on a project basis as and when there’s a need. It results in a significant loss for small business firms, said Lisa N. from Essaymama and Essay on Time.
The solution, according to Eric Dalius, is to diversify the client base. It is essential to have other clients from where you can generate the revenue instead of depending on one client. Getting a diverse client on board is challenging. Small businesses need to create specialized business pitch and market their company to get more clients on board.
- Balance growth and quality
Your small business might not be founder-dependent, but there will be a time when its growth challenges will move beyond the advantages. Regardless of whether you are selling a product or service, you might have to compromise and scale up at a point. It could translate to the inability to monitor client relationship management and many others. Small businesses need to give attention to finer and minute details to succeed. As a result, Eric J Dalius concludes that small business entrepreneur find themselves locked with these habits, which might hinder the growth. It’s necessary to balance quality work and business growth.
- Cash management
According to dissertation service, Being a small business entrepreneur, you should have ample cash to pay for all your bills. Less capital or misuse of business capital will cost on your small business in the long-run. Since small businesses have limited cash, there might be situations of cash drain and financial fatigue. To stay away from this, it essential for small businesses to save well and also try and increase their revenue. That means they need to pitch for more work from clients and generate more income. And that might become challenging as small businesses also have less staff and other business resources. Hence, being a small business entrepreneur, you need first to address all the cash issues and then balance the extra work and resource procurement. Effective money management will keep your business active and also help you stay functional during a crisis.
Small businesses witness other challengesdepending on their business objectives and their niche. If you are planning to get into small business entrepreneurship, stay prepared to address these three challenges.