Top Struggles of Small Businesses and How to Overcome Them

Many of us desire to have our own business, and yep, the idea of being your own boss is pretty great. You have choices and gets to make your own decisions. But I will be lying to you if I tell you that it would be an easy road to take on. Business is an infinite game, there is no winning, there is only keeping the business going.

Pains and struggles will come to your way, the best way to deal with them is knowing what they are and how to be prepared for it.

Below are some issues and problems that a company may encounter:

1. Government Compliance
   Business Registration, Taxation, and Labor Compliance is a tedious process. Starting up a corporation may take you at least 4 to 6 months to be registered with SEC alone, and another month for registration with BIR, LGU and other government entities. There were many cases where businesses, no matter how successful they were, were forced to close down due to government compliance issues.
   
   
2. Time Management
   Sometimes you just have so much to do with your limited time, and it starts to overwhelm you making your business paralyzed. You don’t want to lose focus on your long-term goal and be caught up in your day-to-day business operations. Knowing when to delegate some of your tasks to other members of your team can save you a bit of time.
   
   
3. Unable to Adapt to Changes
   Changes in business are common when you are expanding. Having these changes also needs adjustment like hiring more employees due to an increase in clients. Unable to adapt to these changes will result in a poor quality of service that would eventually affect the company’s sales performance.
   
   
4. No Clear Goals
   Both you and your employees must know the vision of the company. This will serve as the guide of what are the next steps to be done for the company to reach its goals, hence not knowing the goals and objectives hinders the company to move forward.
   
   
5. Monitor Your Cash Flow
   Monitoring the Cash flow of the company is essential since it will help you see if the money in and money out is still within the capacity of the company, at the same time gaining profit. Fail to monitor your cash flow and you fail to track your sales and expenses. If your bills exceed your cash, then you have a cash flow problem. Poor cash flow management is one of the reasons why small businesses fail.
   
   As a business owner, you will need to focus on growing your business so it would be best if you outsource your accounting and bookkeeping tasks and all you need to do is to analyze the Cash Flow Report for your future decision making.
   
   
6. Hiring and Retaining the Right and Talented Employees
   Your employees are the most indispensable asset of your company and hiring the right people is crucial. Without your effective employees, your business will not move in a positive direction and become more successful in the future.
   
   If hiring too many in-house employees will lead you to a costly overhead, you might want to consider outsourcing such as your accountant, bookkeeper or even your IT team.