Running a small business is not an easy job. Small business will experience some unexpected times throughout their operations. And when it comes to small business pain points, there are some that almost all business owners face throughout their entrepreneurship. Here are a couple of small business pain points and tips on how to fix them.
- Insufficient Working Capital
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 capital to invest in other business activities. So it is up to business owner to identify the potential financial need and invest capital carefully. Another option for managing this situation is small business loan. By getting a small business loan you can cover all your business expenses effectively.
Here are some of the misuses of capital;
- Spending all amount on one endeavor.
- Spending too much time on non-cash-generating activities
- Failing to separate business and personal funds
- Cash Flow Management
Cash flow management is deemed as the most important entrepreneurial skill. Maintaining consistent cash flow is quite difficult for small business owners. Almost 4/10 businesses in US fail due to lack of cash flow management. Therefore setting up right financial foundation for your business is crucial. Delayed payment can make your cash flow negative, therefore avoid that situation. You can also get small business loan to strengthen your cash flow.
It is also advised to manage your business cash flow personally almost daily. Collect all your receivables and decelerate your payables without risking your rapport with your vendors and suppliers.
- 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 skills you require for your business. Most of the business owners are waiting their precious time and money on this without knowing what they want. Therefore it is important to know your requirements and financials before hiring one.
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.
- Employee Turnover
The term employee turnover is referred to as the number of employees who leave and are replaced by new employees. Employee disengagement is the major cause of employee turnover. Employee turnover whether it is voluntary or involuntary can give you headache.
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 will cost your company. Keeping your superstar high performing employees is cost-effective than hiring new.
- Dealing with Customer Complaints
It is your duty to keep your customers happy as they keep your business running. As a business owner you don’t have time to answer every single complaint, therefore it is good to hire someone who can manage this duty for you. Here are some pointers that will help you in dealing with your customers’ complaints;
- Always listen to what your customers have to say
- Apologize for any inconvenience
- Identify their needs
- Suggest solutions
- Be available
Running a small business is quite complicated, but rewarding. Take note of these major sticking points and their solutions and run your business effectively.