Opening a small business is definitely a huge achievement for a lot of people but the really big challenge is maintaining it. We are faced with various standard challenges like hiring good staff, brand building and much more. However, those that are really complicated to deal with are the ones that you need to be extremely careful with since you will need to get over them in order to grow your firm.
In the event that you have one major client that is bringing in a huge part of the income, the business is more like being an independent contractor. It is vital that you diversify a client base in order to grow your company. That is difficult if you have a really large client that does pay on time and does pay really well. Most small business owners believe that having this type of client is tremendous but on the long term, this is a huge problem.
Improper Money Management
You never know when an unexpected expense appears and if you do not have the necessary funds to pay bills, you end up bankrupt. Money management is incredibly important and too many individuals out there do not actually have the necessary skills for this. You have to be 100% sure that you build up cash reserves. While you can always deal with unexpected problems by selling a property or getting a loan, the most important thing is always being sure that you do have access to backups.
Being a startup manager is something that takes up a lot of time. You have to work a lot and the hours that you are about to put in will bring in a lot of pressure. There are way too many business owners that are stuck working a lot of hours, usually a lot more than employees. The manager rarely takes time off. You have to do all that you can in order to relax. If you end up tired, you lose time, money and can end up bankrupt without realizing it.
Being Dependent On The Owner
Think about one thing: if something bad happens to you and you cannot work for 1 month, will the business still bring in the same income? If a company cannot operate properly without the founder, it is obvious that the business has an upcoming deadline. Founder dependence is really bad, especially as the business gets more clients. Compromises have to be made and that is tough for some owners.
The Balance Between Growth And Quality
The last thing we should highlight is that business growth is definitely something that an owner wants. However, managing that growth is not at all easy. Any business needs to make compromises in order to grow. In many situations you are faced with the personal engagement level that goes down with services and products. Small business owners are tied to various habits that are highly detrimental to overall growth. Scaling should always be done while maintaining brand values, which is really important.