Running a small business is an uphill battle for most entrepreneurs. Just ensuring the continuous flow of customers and revenue is not enough. In the first few years of business, small companies face a lot of different challenges. Some are harder than others to overcome and about 20% of small businesses fail by the end of their first year. By the end of their fifth year, 50% go under; and by the tenth year, that number rises to 80%. That is eight out of ten!
With survival rates like that, it's easy to understand why folks face the first few years of business with trepidation. It is a rat race in the world of SMEs, where they have to deal with both external factors such as competition and internal factors such as cash flow. There are a variety of reasons why businesses fail, sometimes it is due to uncontrollable factors such as the climate, but most of the time it is due to controllable factors, and well-planned actions can make a tangible difference.
Many common business problems and challenges are fixable with some effort, from difficulties in finding customers, generating leads, and building an email list, all the way to hiring the right people and balancing quality and growth. More often than not, you'll find you need to take a step back, take the time to understand the pain points of your business, and rethink your strategy. As a leader, you would need to take the initiative to assess your business and improve it using a top-down approach. Companies often hire external consultants to get an objective opinion on what can be improved. These external consultants can charge an arm and a leg, and this can be a further burden for most SMEs. However, we have provided some free tips, based on our experience in dealing with SMEs. We believe in working smart and not just working hard.
Here are some challenges every small business faces:
1) Finding Customers
2) Hiring Talented People
3) Spreading Brand Awareness
4) Building an Email List
5) Lead Generation
6) Balancing Quality and Growth
Most of these challenges can be solved easily, if you have a proper cash-flow. This is where Finaxar comes to the rescue. Click here to access funds up to S$1 million which comes with a flexible repayment plan.
For more quick fixes to such challenges, click on read more.