16 Apr 6 Common Challenges for New Businesses
The drudging 9-5 workday drains all their energy, and working for someone else in an unsatisfying job can become unbearable. They fantasize about the possibilities of making their own hours, being their own boss, and making decisions about which direction they want their company to go.
The appeal of being an entrepreneur is compelling for many people, especially in today’s economy. This may seem paradoxical given the current economic slump, but when you consider how hard it is to find a decent job, starting your own business doesn’t seem quite so hazardous.
To help those dreamers who are ready to make their business dream a reality, we’ve compiled a list of challenges business owners often face:
• Writing a business plan: While you may have a great idea, without a written plan and goals by which to measure your success, your business won’t go very far. Without a plan, it can be difficult to find funding or establish monetary goals. It can also be easy to lose focus or neglect some aspects of the business in favor of others.
• Finding clients: Once you’ve gotten funding for your idea and made a plan, you have to convince customers that it’s worth it to invest in your business. Whether you convince them that they need the goods you’re selling or that the services you provide are simply the best, you have to build a client base and keep it growing to be successful.
• Client dependence: After you have your client base and your business is beginning to grow, it is important to continue branching out. Becoming dependent upon a select few clients can be detrimental to your business should any of them stop buying your product.
• Owner/Founder dependence: In a similar vein, it can be dangerous for a company to become dependent on its owner. It is necessary to share your plans and goals with those working for or with you so the success of the business is not tied to your presence. That way, you can take a day off now and then and know your business will continue to function – an important factor to both your health and the health of the business.
• Regulatory challenges: One of the challenges facing business owners today is compliance with state or federal governmental regulations. Almost 10 percent of business owners in 2013 cited governmental red tape, and an additional 7 percent on average cited government as a whole as being difficult to deal with. Ensuring your business complies with the rules and regulations of your region is something you must constantly consider.
• Money management: Bookkeeping skills, accounting experience, and having a good understanding of financials are imperative for the success of any entrepreneurial or commercial venture. If you don’t know exactly how much you are spending and making every month, then you are at risk of losing control of your finances.
For some small business owners, and even established commercial employers, bookkeeping is one of the most stressful aspects of the job. Two Roads is always here to help with your bookkeeping and accounting needs, whether you are a fledgling entrepreneur or a successful CEO.