Starting a small business may sound easy considering it’s a “small business”, but the reality is there are numerous problems that often larger businesses don’t even have to deal with. Tasks can be overwhelming when only one or two people are running the business,and there is no money to pay someone else to fix constantly arising problems. Below are common challenges most small business owners will face.
When you stop running, the business stops running. If you only have 2 employees and 1 employee becomes sick, what do you do? You might say hire more people, but that’s another problem. Every person added to your payroll costs your business more money. And when you do have someone on the payroll they will expect hours. Putting someone on the payroll as a backup employee can be costly and most people aren’t willing to do it.
The high dependence on a small number of employees means it is vital to choose the right people. It’s impossible to know if someone will become flaky and stop showing up for work at some point, but you should do your best to determine if they will be a good fit. You should interview employees and do all the necessary procedures before hiring. Once hired, take plenty of time before giving a new employee big responsibilities. You should trust them and build a relationship, so that you understand them on a personal level. This way they will feel respected and value their position at your business.
Even with trusted employees, owners often take on too many tasks themselves. Sometimes it’s because the money is tight and that’s the only way to get a job done. Taking on so much leaves the owner exhausted. Problems of all kinds, from an employee not getting their full paycheck to the soda machine breaking down during a lunch rush will happen. As an owner it’s impossible to learn every little detail of the business without exhausting themselves. There needs to be a healthy balance between their work, and paying someone else to fix the problem. This is where money comes in.
The money aspect is what will give an owner the option to relax for a few days and have another person take over. If the money is not there, the owner won’t have that option. Small business owners must either have a large amount of capital set aside or they must have another source of income like a second job. As Tarrant SBDC explains, this can often be the reason why the beginning stages of a starting a small business are the hardest. Even thoroughly planning a business will not prevent unforeseen expenses. Once cash is flowing it doesn’t mean a business is successful. An increase in profit almost always means an increase in expenses, so it’s vital to make sure you’re staying on the positive end. It’s super important to hire an account for this.
These are just a few challenges, but don’t be discouraged. Owning a business can be a rewarding experience. Many owners wouldn’t trade their way of living for any other job.