Every new business will face several obstacles. Many of these obstacles are the same from year to year. However, current economic conditions make growth even more contentious.
While owning a small business is certainly a challenge, small businesses are still the engine of the U.S. economy, and entrepreneurs still constitute the vast majority of employers in the United States. There are a few common issues we have found that face every new business.
1. Cash Flow
Never forget that cash is king! If capital expenditures or expenses are draining the cash from your new business, you won’t be in business long. Make sure you store as much cash as possible and be adequately capitalized. Look to professionals for help whenever you can. Your team should include, at minimum, a good attorney, accountant, and insurance agent.
2. Failure to Outsource
Many business owners think they can do it all. The reality is that you should focus on what you do best, generating revenue, handling client relationships, and managing operations. Outsourcing services such as payroll, accounting, and HR should be considered.
3. Finding Skilled & Professional Employees
It really doesn’t matter what business you’re in, finding the right people is the most important and difficult job for a new business. Depending on the industry in which you operate, skilled workers may be hesitant to join a new business. Establishing your business professionally will go a long way to remedy this common issue.
4. Poor Marketing Strategy
One of the most important elements of a successful business plan is a well-researched marketing strategy. A clear marketing strategy is a necessity for any business. Marketing informs prospective clients what products you sell and how you sell them. Word of mouth is great, but it doesn’t constitute a marketing plan. Your marketing plan will help create your brand.
In today’s digital world, it is important to prioritize both traditional forms of marketing as well as online marketing. A well-rounded marketing strategy will provide you with the greatest benefits moving forward.
5. Technology
There isn’t any question that technology can help you grow and manage your new business. From client management to social media, technology needs to be a central part of every business. Unfortunately, too many new business owners are not aware of the many forms of technology that could assist them in their endeavors. If technology is not your strong suit, it is important to hire an employee or outsource this task to a professional.
Owning and operating a new business is no easy task. No matter how hard you try, there are always problems to solve and fires to put out. However, do not lose heart! By partnering with individuals who specialize in certain areas, you can eliminate unnecessary frustrations while pursuing your goals.
LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!