How to handle common problems experienced by small businesses
- Business Rescue Business Growth
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From day one of running your business you will face challenges. Some you will overcome whereas some will test you to your limits. Your business story could be plain sailing. However, much as we hate to sound like doomsayers, it is likely you will encounter problems at some point. Here at Be Rescued, we see first-hand the problems small businesses have to cope with and help them find workable solutions.
The main thing to remember is that other small business owners will have experienced exactly what you are going through. You are not alone. Whatever the difficulty or obstacle, there will be tried and tested approaches for every scenario. This month we thought we’d share some common problems small business owners face and give tips on how to handle them.
8 tips on how to handle common business problems from Be Rescue
1. Uncertainty
We live in a time of political and economic uncertainty, which is proving difficult for some industries. However, learning to deal with uncertainty is one of the many skills small businesses need in order to grow. Owners of small businesses need to develop resilience.
Building resilience does not come naturally and can be especially difficult for start-ups. However, there are certain strategies you can adopt that will help. One approach is to accept that change is part of business life and look for opportunities rather than seeing it as an insurmountable problem.
During times of uncertainty try to take positive action. Plan for various outcomes, have a Plan B and seek advice from professionals. At Be Rescued, we can work with you create a contingency plan to help combat any potential difficulties.
2. Stagnation
Sometimes businesses can stagnate, and this becomes a real problem when you are no longer offering what your customer needs. To avoid this happening, it is essential that you stay relevant to your audience.
Even when figures are better, there are no grounds for complacency so carry out regular market research and monitor your competition. Return to your SWOT analysis (strengths, weaknesses, opportunities and threats). If your business is in danger of becoming outdated, tweak your product offering and look at adjusting your services. This doesn’t need to cost the earth; sometimes small changes can make a big difference.
3. Work overload
In our last blog post we looked at the issue of mental health and how it affects small business owners. One of the triggers for stress at work is feeling overloaded. Small business owners can suffer from work overload. Not only do business owners have to manage the day to day running of their businesses, but they also have to deal with matters outside of their comfort zone such as tax, accounts and marketing.
As a small business owner, you have to juggle so many things. It is easy to take your eye off the ball or feel so overwhelmed that you are unable to perform each task effectively. The key is learning how to manage your time and to delegate work to professionals, leaving you to focus on running your business. This is where Be Rescued can step in, we advise on time management and can help you outsource your business and financial planning.
4. Regulation and compliance
The area of regulation and compliance can be one of the most intimidating things for business owners, if not implemented correctly you can fall foul of the law. You need to learn what applies for your industry and what general regulations (anything from Health & Safety to Employment) you must follow. Ignore this at your peril. As a small business owner or Company Director, the buck stops with you. You will be responsible if your company falls short and does not comply.
You can stay on top of things by joining your industry body and national organisations such as The Federation of Small Businesses (FSB), which runs regular campaigns on new legislation. One recent example is Making Tax Digital, which now applies to businesses with a turnover of £85,000 or more. The FSB has a ‘guide for you and your business’ which introduces MTD and gives advice for small business owners (https://www.fsb.org.uk/standing-up-for-you/our-campaigns/making-tax-digital).
5. Financial management
At Be Rescued, some of the biggest problems we see are finance related and in particular cashflow. It is essential that you establish good practice when it comes to your financials. This will help you avoid problems further down the line. Not knowing your figures could land you in hot water.
It is essential that you understand your daily, weekly, monthly, quarterly, etc cashflow movement and the breakeven point of your business. Without this knowledge you will not know the number of sales you need to make a profit or have cash reserves.
Whatever the size of your business, as a small business owner you are not only expected to know but must actually know what’s going on financially and be able to manage your cashflow. As a Company Director, it is ultimately your responsibility and you simply can’t assume that everything is in place. Check your numbers regularly and if in doubt talk to your accountant or call us, we can help!
6. Business Growth
Sometimes business owners can get frustrated and see only obstacles in place preventing them from achieving business growth. You need an eye on the future to grow. Finance and/or Investment is not the only tool you need to grow, we believe the fundamental key to achieving growth is strategic planning with a purpose. It is essential that you know what you want to achieve and set realistic goals, the rest will follow. Make sure that there is synergy with your overall business plan and any plans for growth or the two will be in conflict.
Remember no man - or woman - is an island, asking for help could make all the difference. You might need help to understand whether your company has the capacity to grow. Perhaps you need help to raise capital to expand. Maybe you would benefit from an expert pair of eyes reviewing your business plan. Be Rescued can help with all this and more, call for a chat to find out how we can support your business growth.
7. Clear communication
Poor communication can create problems for small businesses. For a business to thrive it is essential that there is clear communication. Examples of poor communication can include staff not being briefed properly, the result being that they cannot complete a task correctly. Or lack of consistency in cascading down the business objectives and vision. On the positive side, keeping employees informed on company developments can boost engagement and lead to increased productivity.
Not communicating effectively whether with employees, suppliers or any other stakeholders might result in a major misunderstanding, which in the worst-case scenario could end up in court. So being clear in communication whether via email or face to face is a must. Small business owners should have procedures in place to promote understanding in the workplace and avoid any potential problems.
8. Staying motivated
With the constant demands that come with running a business, staying motivated can be a challenge. However, if you let your enthusiasm wane, this can become a problem. It can affect others around you and will also make your working day so much harder to deal with.
The key is to remember why you started your business in the first place. Step back and consider the benefits of being your own boss and look at what you have achieved, no matter how small the achievement may seem if you have learnt something new in your business then pat yourself in the shoulder. Also celebrate any successes with the people who have helped you, whether you’ve just completed a great project or received amazing client feedback. Attend events to keep in touch with your industry. Reignite your enthusiasm and the rest will fall into place!
Remember – there is help out there
Whatever business problem you are experiencing, we can help at Be Rescued. Give us a call to find out how we can support your small business.