A business that can't operate without its founder is a business with a deadline. One simple tip is to keep strict track of your money, where it’s coming from, and where it’s going. (In advertising, honesty truly is the best policy. Data Surveillance During Remote Work Leaves Businesses Vulnerable, Why Double Opt-In Isn’t Counterproductive for Your Email Marketing, 8 of the Top Apple Watch Apps for Small Business Owners, How to Pick the Best Business Partner for You, Use These 5 Financing Options for Your Bootstrapping Startup, Save 25% on Cybersecurity for Your Business, Get your business ready for Black Friday with a 25% discount on Malwarebytes for Teams, This Small Business Week, Reflect on Policies That Go Hand-in-Hand With Small Business Success - RightWisconsin. While “Obamacare” is undoubtedly beneficial for the health of workers, it’s often the business owners that receive the financial blow. The complexity of a company’s books increases with each client and employee, so getting an assist on the bookkeeping can prevent it from becoming a reason not to expand. By using Investopedia, you accept our. It’s always wise to judge the profit against the cost.eval(ez_write_tag([[336,280],'smallbiztrends_com-large-mobile-banner-1','ezslot_4',146,'0','0'])); As a small business owner, realizing this one insight is essential for maintaining a calm head: your competitors face the same problems as you do. "Small Business Trends" is a registered trademark. The problems faced by small business are considerable, and one of the worst things a would-be owner can do is to go into business without considering the challenges ahead. This is why many small businesses start out with the founders working a job and building a business simultaneously. of hiring new employees, unfortunately, keeps rising. Whether a service or a product, at some point a business must sacrifice in order to scale up. Moreover, they fear their business will stall in their absence, so they avoid taking any time away from work to recharge. The SBA 504 loan protects you against the economy’s rising rates, since the loan keeps down your overall finance costs, letting you get the most from tax rates. I want you to take a good, long look at your client list. How you respond to these challenges will change the “game” – as you become more successful, thereby leaving your rivals by the wayside. A microenterprise is a small-scale business that employs a small number of employees—if any at all. A small business owner should not create a situation in which the business could not continue in their absence. They’ve done research on everything — from job openings to labor markets, from capital spending budgets and the cost of inflation; on a monthly basis. If you’re still thinking about starting a business, make sure you are selling a product or service that you are passionate about. The National Federation of Independent Businesses may have at least a partial answer. If a single client makes up more than half of your income, you are more of an independent contractor than a business owner. Problems such as inexperience, business size, and the lack of resources can get in the way of an entrepreneur’s success. If you get hit by a car, is your business still producing income the next day? Want to know the biggest challenges facing small businesses? This may mean not being able to personally manage every client relationship or not inspecting every widget. This arrangement can work if your main client has a consistent need for your product or service. Bar-none, one of the most challenging aspects of running a small business comes from managing health care for your employees. Without employees, a small business cannot run successfully (with the rare exception of home-run businesses). There is a large middle ground … The National Federation of Independent Business states that when you invest in your business, Section 179 allows you to instantly deduct the cost of that investment. As demands for your business increase, without the proper systems in place, you’re more likely to come up short and fall short of those demands. While this act isn’t a bad thing, it is a challenge for business owners who don’t have the proper vehicles or environmental-protection know-how. In the event that you can, life would be a lot easier if you had a few employees under the belt.