Owning and running a small business is no easy task. Small business owners will experience the highest of highs and lowest of lows during their journey. When it comes to certain small business pain points there are definitely a few that are a common thread amongst most business owners.
Here are four small business pain points and how you can address them:
Insufficient Capital
The majority of businesses fail due to the lack of or misuse of capital. The problem with capital is that we always underestimate how quickly it’ll get spent. As we forecast expenses and revenues it’s nearly impossible to get it down to the penny. That said, it’s important to constantly look for capital to fuel the business.
As the business owner it’s up to you to identify potential financing options. Whether it’s a small business loan, line of credit, angel investment, or venture capital you need to have a few available at all times.
Bonus tip: If you find yourself burning through your cash too quickly you should try your best to bootstrap as much as possible. Trade services with other businesses and or outsource work to contractors for more affordable rates.
Cash Flow
Maintaining a consistent cash flow is difficult at all times of a small businesses lifetime. If you’re struggling to get cash in the bank it can slow down the whole operation. From debt to late payments there are plenty of causes for cash flow problems.
One of the most common reasons for cash flow issues is delayed payments. I recommend using an online payments solution that offers online invoicing. Digital accounting solutions create a seamless way for you to bill customers. In addition they make it easy for customers to pay. These platforms allow you to connect your bank account so your money is automatically deposited. This allows you to focus more on scaling your business and less on chasing down deadbeat clients.
Employee Turnover
People typically think businesses are successful because of their products and services. This is true to an extent. What makes a business truly successful is the people that run it.
Employee turnover can be a very expensive pain point for small businesses. Finding, vetting, hiring, and training employees is a long and strenuous process. That said, it’s important to keep employees around as long as possible.
There are plenty of strategies you can use to reduce employee turnover. For starters here are a few things you can try:
- Offer clear path to a raise: The truth is money talks. The more incentive your employees have to perform the better. Offer a clear path to raises if they can perform at a high level.
- Balance the work load: If you constantly pile on boring and strenuous work on the same employee they’ll be sure to lose motivation.
- Give them more responsibility: People work hardest when they believe their jobs are important. Start with the employees with the lowest level positions. Do whatever you can to give them a larger sense of responsibility.
- Conduct reviews often: If you conduct employee reviews you can get a better understand of their concerns and or suggestions. This will help you create a strong and lasting company culture.
Marketing On a Budget
How are you expected to compete with other companies with an unlimited marketing budget? While it’s difficult it can and needs to be done. There are plenty of ways to market your business while on a budget. Here are a few to take note of:
- Content Marketing: Content marketing is a great place to start for small business marketing. Content channels like your company blog, social media handles, and YouTube are places that you can get started right away for little to no cost.
- Case Studies: The most effective sales tactic is referral sales. Find your most successful customers and bring on five others like them. One of the best ways to identify your highest performing clients is by conducting a case study. Once the study is finished publish them on your site and use them as marketing materials for other prospects.
- Email Marketing: As you begin to create a customer base you need to make sure they’re constantly engaged. Email marketing tools like MailChimp and SendGrid are a great way to keep employees informed and engaged.
Final Thoughts
Running a small business is tough. That said it can also be the most rewarding thing you’ll ever do in your life. Take note of these four common pain points most small businesses run into and do your best to resolve them.
