It is already challenging to run a small business, let alone managing the bigger one. The point is, growing a business will always be challenging no matter the scale is. It may be easier to start a business and everyone can do it anyway. However, managing and growing to reach success is another story. That’s why not many people succeed to reach their goals. In business market, 95% of it is controlled by small and medium-sized enterprises. However, it is such a shame that 50% of small business can’t make it due to many reasons. They can’t even survive in their first four years.
How to face biggest challenges in small business
There are many reasons why small business owners failed to run their business. Of course, every one of them has their own problems and challenge to face. However, there are biggest challenges that every business owners face. Here are some of them:
- Funding challenge is one of the most common and biggest challenges for small business owners. The most important point is the money management and cash flow. You see, business is filled with tight competition, which makes this challenge even more challenging. Thus, lots of small business owners failed due to narrow funding. However, lacking of ample funding is inevitable for small business especially for the beginning. Maintaining cash flow is also hard to face. To solve this problems, the opinions of the experts will help. Using current technology for money management is also good solution for this challenge.
- Another biggest challenges for small business owners is proper marketing. There are various strategies for marketing that small business owners can use. However, with so many options on the plate make it harder to choose proper marketing. To deal with this challenge, it is highly advised to use technology such as digital marketing to improve the result.
- Next challenge in small business is to target customers precisely. With digital era, customer-orientation is the center of modern business. However, targeting market is not as simple as it sounds. The point is, small business owners should show their own unique colors to attract targeted customers. It is important to research targeted clients beforehand. Use the right channels to reach clients then find out what they really need. Then, it is important for small business owners to express their creativity. It is also important to retain existing customers to gain their loyalty.
- Next biggest challenge in small business is leadership. A business should be run by a team and a team will function with proper leader. A leader should have quality and ability to see the big picture of the business. It is not only the customers that should be taken into consideration in every decision. Employees are also important part of business that can be the key of success of the business. Thus, it is important to have strategic leadership that can lead the team to work efficiently. The qualities that the leader should have include willing to listen, spread positive energy to motivate others, and knowledgeable.