There are several challenges that are standard to both large and small businesses. However, there are problems that are only unique to small businesses, and these must be prepared for and countered with a proper solution. Some of the common SMB problems include:
1. Getting The Right Talent: Bigger businesses with bigger brand names always go for the best talent on the market leaving small business owners with no option but to hire from the secondary market.
Because small business owners are unable to pay certain benefits offered by well-established firms, the business may end up with low-quality products that contribute to high failure rates.
2. Outsourcing Standard Functions: Managing standard functions or outsourcing them could be a challenge when the company is still small. Businesses that do not have enough to outsource can use web applications to manage certain functions like time management, sales force management and accounting.
Various online software applications, such as Averiware, are available to enable businesses to integrate all their business processes in one system. These applications enable businesses to manage all activities in one place including sales, accounting, inventory, customers and suppliers.
3. Lack of Capital: This most critical challenge arises from poor planning rather than economic conditions. Without proper cash flow management, the business may be constrained by capital as it grows, or even fail.
It is important for businesses to understand that they cannot make an instant profit at the start of a business and thus may need to prepare for the little funds available by minimizing operating cycles and making advance plans for cash needs. This can be achieved through a sound inventory and accounting software.
4. Poor Marketing: A marketing plan is important for the business because it defines the target market and competition. Although small businesses often bear close relationships with their customers, it is always a challenge to find new customers.
SMB’s must thus use a variety of techniques to reach a wider audience, including internet marketing which does not require a lot of financial input.
5. Access To Data: For small businesses, access to data may prove to be a disadvantage, especially when there is no centralized system in place. By using the Averiware’s small business ERP products, such businesses can utilize cloud computing features not only to consolidate their data in one place for easy access, but also ensure that the data is safely stored for recovery purposes.
At the bottom line, these are only challenges and the worst thing a business owner can do is to start a business without putting them into consideration.
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