Businesses, regardless if they’re big or small, have plenty of standard challenges they have to face. But some problems are unique to small businesses that most large companies have already overcome. Management is one of them. Let’s talk about these critical small business management problems and how business owners like you can overcome them.
1. Dependence on the Founder.
Founder dependence is a plague among many businesses and it can be fatal. Your business should learn to operate without its founder, especially as your company grows. Give more control to your managers and employees; delegate responsibilities and decision-making to them. That way, even if you are away from work, the business won’t suffer and your employees will be confident in running it.
Of course, this is easier said than done – you can’t just hand over the reins to just anybody. Invest in training your team.
2. Finding and Keeping Talented Employees.
Speaking of training your team, small businesses might find it a struggle to find skilled employees. It gets even harder to keep them in your team, especially since you’re competing against larger corporations that offer higher pay and better benefits.
But even a good paycheck can’t beat a business that treats their employees well. Employees choose and stay at a company that cares for and understands them. So invest in your team, ask for their feedback, and keep them happy. Build a workplace where they feel comfortable to talk to the management about issues.
Good employees will also want to work for a business that makes a difference. People are more socially responsible and aware today. Wouldn’t it be neat if you could give them a workplace with values that are aligned with their own?
3. Managing Time.
Many large business owners have outgrown the problem of business time management, moving on to the typical corporate 9-5 pace. Meanwhile, small business owners have to run the day-to-day of the business. This is natural when you’re starting out; you have to set up the initial processes and pace after all.
But when it’s time to scale the business, you can’t be stuck working “in” the business. You’ve got to work “on” it. Avoid founder dependence. Have your team be in charge of operations. Consider outsourcing or get help from technology or systems that can free up your time. That way, you can focus on directing your company’s growth instead.
4. Managing Money.
Financial problems are a common challenge among small business owners – late payments from clients, unexpected expenses, bills, and the list goes on and on.
Plenty of solutions have been brought up to help budding businesses with money management. There are tools and apps that can help you create budgets, automate bill payments and manage your cashflow. Consider using software that can provide online invoices and can automatically charge clients for unpaid accounts.
But even with all the tools and applications, remember to stick to your budget and avoid stacking your debts when you can. Pick up extra income for cash reserves when needed. Hiring professionals to handle accounting and bookkeeping might be against the ‘stick to the budget’ tip, but it’s a worthwhile investment to keep your business afloat.
Preparation is Key
How you manage your time, team and operations is a crucial aspect of your business. Consider the potential business management problems you might encounter ahead and plan accordingly. Overcoming these challenges won’t be an easy ride, but it’s not impossible!