Issues Facing Small
Business
There are a
variety of issues facing new and growing businesses.
Here are a few to owners
should be aware of to ensure growth continues.
1.Cash
Finding it
and managing the cash flow. It’s hard to get and there is never enough. If you
are a fast growth company you can rapidly outgrow your available sources, if
you are an underperforming company you can’t get it. The majority of companies
don’t manage it well.
Most businesses experience
some problems getting paid on time by their customers and with debt recovery.
Good credit control helps to prevent this becoming a serious problem.
2.Lack of a Clear Plan
Most
businesses don’t know how to plan. Lack of a plan worsens the cash problem by
wasting cash chasing tempting diversions, and throwing money at problems.
Equally important is revising your plan according to changing economic and
business conditions and to ensure your survival in weaker economies.
3.Ineffective
Leadership
This issue
takes many forms. It is frequently in the form of depth of leadership. The
founder of the company is too much hands-on and a) does not concentrate enough
on his primary role as a leader rather than a manager; and b) fails to enlist
support of competent managers and staff behind him or her either through
recruitment or by outsourcing. This eventually causes the company to stop
growing and eventually could lead to failure. Directors should always remember
their core role and responsibilities.
4.Prioritizing
Activity
To help you
determine what needs to be done immediately and what can be tackled later, ask
yourself questions such as: "How much time do I have to make this decision,
contact this person, or complete this assignment?"
5.Owners
capacity for stress
Start with
the most worrisome task; this will reduce your anxiety and stress levels for
the next tasks and in many cases improve your performance. Take breaks if you
feel you are about to overload. Even a short period away from the desk is
effective.
I trust these ideas provide thoughts to resolving some issues faced
daily by many businesses as they strive to develop and grow.
