Despite the popular notion, running a small business is not an easy job. It’s a roller coaster ride, there are ups and downs. Small businesses will face some unexpected ventures throughout their operations. And when it comes to small business pain points, there are a few points that almost all business owners face throughout their entrepreneurship. From dealing with customers complaints to time management.
Here are a couple of small business pain points and tips on how to fix them so that you can enjoy the ride, smoothly:
- Not enough Working Capital
If you find yourself exhausting resources in no time, you are not alone. Most of the small businesses fail just because of misusing capital. Normally, small business owners underestimate the spending and at the end of the day, they don’t have the capital to invest in other business activities. So, it is up to the business owner to identify the potential financial need and utilize the capital, strategically and carefully.
Another way to manage this situation is a small business loan. By getting a loan you can cover all your business expenses effectively. Apart from a small business loan, there are other options as well- crowdfunding, venture capital, and angel investor. Go with the one you that you think will benefit you.
Here are some of the misuses of working capital:
- Spending all the amount on one endeavor.
- Wasting time on non-cash-generating activities.
- Failing to separate business and personal funds.
- Cash Flow Management
It is deemed as the most important entrepreneurial skill. Maintaining consistent cash flow is quite difficult for small business owners. Almost 4/10 businesses in the US fail due to the lack of cash flow management. Therefore setting up the right financial foundation for your business is crucial. You can also get a small business loan to strengthen your cash flow. It is also advised to manage your business cash flow personally. Collect all your receivables and decelerate your payables without risking your rapport with your vendors and suppliers.
Delayed payments can be one of the reasons for the mega dip in the cash flow. It can make your cash flow negative, therefore avoid that situation. One of the most used methods to circumvent is to get benefits from ‘Online Payment Solution’. This saves your time and energy that you spent chasing the clients that owe you money.
- Hiring and Retaining Staff
Another pain point for small businesses is hiring and retaining existing employees. Hiring employees is not as simple as finding people with the skills you require for your business. Most of the business owners are wasting their precious time and money on this without knowing what they want. Therefore it is important to know your requirements and financials before hiring someone.
You don’t always have to hire full-time employees. If you want to design a website or create a brand identity, you can hire freelancers as well. It is also difficult to retain your best employees on the board while there are lavish opportunities out there. Just because you are short on cash doesn’t mean that you cannot retain them, there are some other ways to leverage them and keep them on board.
Here are some of the tips that can help you retain your current staff:
- Always leave your door open, if they are facing an issue they should feel comfortable talking to you about it.
- Make sure that you are a decent manager to work with.
- Introduce personal grooming and growth session, to keep them motivated.
- Even if you can’t increase their pay, give them engaging incentives to work for.
- Employee Turnover
The success of a business depends on multiple factors, and people working for you are one of those factors. Employee turnover can cost you a lot of money; it is referred to the number of employees who leave and are replaced by new employees. Employee disengagement is the major cause of employee turnover. Whether it is voluntary or involuntary, it sure is a pain point for small business.
Getting right skillful people into your company and keeping them is the first thing you need to do. Effective leadership is required as employees need assistance and guidance from their managers. Every time you hire or replace your employee, it will cost your company. Keeping your efficient high performing employees is cost-effective than hiring new.
There are multiple strategies that you can use to reduce the employee turnover rate:
- First, start by conducting employee reviews, so that you know what your employees are doing.
- Make sure your employees know that their work is important and what they do is valuable to you too. This will give them a purpose to work hard.
- Handling Customer Complaints
It is your duty to keep your customers happy for they are the reason for your survival. As an owner, you can’t manage an entire business and cater to the complaints of your clients at the same time. Therefore it is good to hire someone who can professionally deal with the customers’ problems. Here are some pointers that will help you in dealing with your customers’ complaints:
- Always listen to what your customers have to say, and respond accordingly.
- Apologize for any inconvenience that you might have caused, even deliberately.
- Identify their needs.
- But at the same times, if what they are asking doesn’t come in your jurisdiction, be straight with them.
- Suggest solutions, don’t let your customers hanging.
- Give rewards or vouchers that they can redeem later.
- Be available.
- Feedback is important, ask your clients to give you feedback either in-store or online on social media platforms.
Running a small business is quite complicated, but rewarding. Take note of these major sticking points and their solutions and run your business effectively.
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