It’s a new year and you have a new plan. You are going to grow your small business! You have always dreamt of being a successful entrepreneur and now is your chance to prove it to yourself.
Just like with any other venture, growing your business comes with various challenges. By understanding and surmounting the top 4 challenges facing small business in 2013 you will be well on your way to having a thriving small business this year.
One of the major challenges that small businesses are faced with is the issue of working capital. Especially in a recessionary economy, it is most important to have enough money to cover the bills; this is a basic requirement. If you find yourself unable to pay your bills then, believe it or not, your company cannot sustain itself. Effective money management is also a key component to the survival of a business as you want to ensure that you allocate the correct amount of capital to different areas of your business.
A good leader is one who has a clear vision, is able to lead and is able to motivate his team to excel. Being hands-on is a good thing; however you don’t want to be in a situation where your business is totally dependent on you in order to survive. You want to ensure that if something was to happen to you, your business would still be able to function. A number of small businesses suffer from owner dependence and it is as a direct result of the owner not being able to delegate responsibilities to different members of the management team within the establishment. Learn to delegate responsibility and manage effectively.
Lack of internal control
Another challenge facing small businesses in 2013 is the lack of internal control. A properly run business always has a proper record keeping system. Most small businesses tend to not have such system in place. Companies that do not have proper record keeping controls, are unable to keep abreast of expenditures and therefore are unable to fully understand whether they are operating at a loss or making a profit. Once you have a proper system implemented it is easier to track the progress of the company. Also, new employees are able to better fit into an organized system, and start working cohesively for the benefit of the company.
Your employees are a direct representation of your company. Highly trained and professional workers will result in high productivity and profit for the company. Where there is a lack of professionalism and workers are not equipped with sufficient knowledge, the business will falter. Ensure that workers that you employ are able to effectively perform the tasks at hand.
If you can surmount these 4 challenges, you will be well on your way to successfully growing your small business in 2013.