Small business owners face a huge amount of issues that they need to try and mitigate as much as possible. The rewards for your business doing really well and hitting the big time are huge, but in the mean time you need to also worry about issues that could plague it. These range from your product, to your employees, money, and everything in between. So many businesses go bust every day and business owners bankrupt. That is why it pays to try and identify any issues before they actually happen. (Image Credit/MRCCI.com/au)
Only by doing this can you give yourself the best chance of success. You want to put it off as much as you can, stop issues by working out what they are and cutting them from your business. It can’t always work because you simply can’t predict the future. Here are various issues you should give consideration, you may already do, but others can give you some ideas about how to further foolproof your business.
Cash Issues
It may come completely out of the blue. Sometimes, fast cash loans may do the job and keep you ticking over, but only as a last resort. A business overdraft may do, but if this is maxed out you’ll start facing certain problems. These issues usually occur in cash gaps. It happens all the time to smaller businesses. For example, say you’re a producing something for a client that is expensive. You need to spend the money on various materials, but you haven’t got the clients money yet, or you only have a deposit. You need to cover this gap in the meantime, which gets worse depending on the number of clients you have.
It becomes okay once the profit starts rolling in and then you can pay your lenders back. If you have other cash issues in your business it may be a good idea to start cutting back. Limit the money you spend on things like marketing and on suppliers. Gradually cost cut until you think it has made a difference. In some instances you may need to make redundancies, just make sure you follow all other options first otherwise you could get sued. Showing due diligence can save you being dragged through the courts and your name besmirched. It is a sad thing to do, but making some redundancies can save your business thousands a month.
When you skin down all of this you will see you save yourself lots of money, but in the severe issues only borrow what you can afford to pay back otherwise you’re just opening yourself up to more problems further down the line.
Employee Issues
They happen often, and need to be dealt with as such. Remember, you pay them to do a job and if they aren’t doing it they need to be addressed. They could be being lazy, not doing work, being unproductive, performing bad practice, or damaging property, etc. The list goes on. Whatever they are doing stop it. Ensure there is a clear disciplinary structure at your place of work and follow it so that others know there will be repercussions to their actions. For such events, companies need to have LLC formation documents in place. These documents spell out the rights and responsibilities of both the company and the employees, and they help to ensure that everyone is treated fairly. By investing their time in this, companies can help prevent employee issues before they start.
If you don’t think you are too good at having serious talks with people ask a partner to do it for you. It can be a daunting task to those who don’t like such things. It all has to be done by the book. There are all kinds of issues that could arise, such as employee disagreements or accusations of sexual harassment which can be really damaging if not handled appropriately. Always take things seriously and ensure you remember how people feel throughout everything that goes on.
There are other kinds of employee issues that occur through them not being happy at their place of work. There is a myriad of things that can cause this, so consider using an employee listening group to get to the bottom of what is happening. You can then act on this information as you see fit. Think of simple things, such as the chairs they use to sit in. Are they supportive enough? Will they cause back problems? Then think about the break room. A good break room is extremely important and conducive to business success. You can find out more about it here. Employee problems come in all different shapes and sizes, just remember as long as you handle them with some modicum of professionalism it should all be alright.
Tax Issues
You, like everyone else need to pay tax. The amount of businesses that get this wrong every year and need to pay huge amounts back and sometimes even fines are vast. Don’t be one of them. If you aren’t good with numbers and need help with tax consider getting help with it. Hiring a tax consultant can be really beneficial to your business. You may even find out you are overpaying in some way, or, worse you could realise that there are major tax breaks open to your business type that you have not yet explored.
It can save you thousands and is well worth the payment for a consultation at least. You need to know the ins and outs, so listen to everything the specialist has to say. If you do, then you won’t need to hire one in the future thus saving you money in the long run. Always keep your ears open and try to learn everything that you possibly can.
Dip In Custom
This is completely killer to any business. No business can succeed if they aren’t making sales. You will then find you have money going out but none coming in. You need to think outside the box and quick. If you own a restaurant or other food based business then consider getting out and sampling your products on the streets close to your business. These are the types of marketing you need to consider. Get to the closest trade shows and do all you can to increase your business visibility. You can make a difference doing this. You also need to explore your online options, especially if you only trade online anyway.
Either use SEO companies to do the job for you or otherwise consider doing it in house to save a bit of cash. If you don’t have clients you’ll have time on your hands to market yourself. Post quality content from your business social media account and link back to your website. Do the same by targeting relevant blogs. You can even go all out and make a marketing video for your company to pull people in. Marketing can cost money but if you do it yourself this will be minimal and a guaranteed way to bring people in.
You may also want to consider trying out different products or services. Check out what your competitors are doing and what is selling well. Release the new service or product and contact your past customers using email marketing to ensure they are targeted. They may come back to try out the new products, especially if they liked the older ones you created. A dip in custom can be a death sentence for many businesses, but by being proactive and doing your best to stop it you can revive it through sensible marketing and putting the money you have left in the right places.
You can consider changing the look of your website to spruce it up. Is it too complicated or glitchy? These are all things that can contribute to a dip in custom. You need to treat the causes of this for ultimate success, not just the symptoms.
