4 Common Small Business Problems and How To Solve Them
July 20, 2022
What are the common small business problems?
- Employee Recruitment, Retention, and Labor Quality
- Lack of Capital
- Time Management
- Finding Customers
Starting a small business is a dream for many people as it offers attractive financial rewards, independence, flexibility, and creativity. But when it comes to managing a small business, there are also plenty of challenges.
As a small business owner, you wear many different hats. One day you might need to solve an HR issue and the next day you need a solution for budgeting. Small business owners need to adapt to different business conditions to succeed.
Here are common small business problems so you can take the necessary steps to overcome them and lead your business to success.
Employee Recruitment, Retention, and Labor Quality
Today, 55% of small business owners agree that there are major challenges in employee recruitment, retention, and labor quality. With the uncertainties brought by COVID-19, it became harder to recruit and retain employees. There are labor shortages everywhere and your small business might be experiencing the same problem.
There are a few ways to overcome recruitment challenges. First, take the time to hire for the role you most need right now. Then, make sure your business, position, and offer are attractive to greatly improve recruitment success. You can also rely on employee referrals — offer them incentives for bringing in a candidate.
To overcome retention problems, make sure to offer a competitive benefit and salary as well. In fact, to combat retention difficulties, 63% of small business owners increased compensation. Health insurance and making employees feel appreciated can also go a long way.
Just make sure to choose the right applicant. Hiring mistakes can also be costly and the turnover can hamper your team’s productivity.
Lack of Capital
The capital is the lifeblood of any business, providing both the operating money and the money to scale up in the future. A lack of capital could threaten the survival of your small business.
Many small business owners consider obtaining funding to get enough capital. Fortunately, there are multiple funding options today. If traditional bank loans are not an option, you can look into investors who want to buy a part of your small business.
Time management has always been a common small business problem. As an owner, you will have to take care of all areas of the business. It is unlike those with a regular job where you have only certain tasks.
In the morning, you might be managing payroll but in the afternoon, you might be reviewing sales and improving your latest product offering. The solution for this is to enhance your time management skills. Do this by jotting down your goals and categorizing them by their importance. Eliminate the other unnecessary tasks and assess your time management regularly.
Ask yourself whether there are tasks not getting finished regularly and consider solutions such as delegating the task to a new employee (if possible) or automating them to save time.
For your business to be successful, you need to find customers. Unfortunately, building a customer list is easier said than done. Fortunately, if you want customers to find you, marketing and advertising can help. There are various marketing strategies to choose from, such as social media marketing and SEO. Most of these strategies are ones you can learn in-house, or outsource to talented agencies!
In this article are just some of the common small business problems. A small business owner who is prepared and knows about the potential challenges is more likely to succeed than someone who is not aware of them.
If you need more business solutions, you can consult Benito Keh — a prolific entrepreneur in the Philippines. Get in touch by clicking here!