|If you consider several of the entrepreneur challenges identified herein in advance, you could be smiling like this too!|
Starting a company can be very challenging, and that is why just over 96 percent of businesses fail within the first ten years. From staffing problems to legal troubles, it is vital for all small business owners to take some time and learn about the challenges they will face in the near future.
Cash FlowWithout proper budgeting, maintaining consistent cash flow will be nearly impossible. Before you start selling any products or services, you must be absolutely sure that you will have enough money at all times. One great way to do this is to alter your payment plan so that your clients pay you up front. You should also have an emergency fund that could keep you afloat for a month or two.
High Employee Turnover RateFew small business owners realize just how expensive employee turnover is until they experience it firsthand. Depending on how much training you are giving an employee, losing a single staff member could cost you tens of thousands of dollars. When listing a position, it is important to be as clear and as straightforward as possible so that your employees are not shocked once they begin working.
Technical WoesAlmost all businesses rely heavily on technology, and a single issue with any of your devices or programs could bring your company to a grinding halt. All small business owners must have extensive employee training so that new staff members know how to properly use and protect the technology. You might also want to work with a trusted service, like a tech support company, that can help you solve problems when you are in over your head.
An Evolving MarketEven with a world-class product or service, your company will get left behind if you cannot anticipate the industry. Entire industries can evolve overnight, and you will need to invest extra time into tracking those changes. That often includes following key people in the industry, going to conferences, and consistently reading industry journals.
An HR FiascoNo matter how well you train your employees, an HR disaster can take place at any time. Many small companies protect themselves from legal issues by keeping a lawyer on retainer. These legal professionals generally charge an hourly rate for consultations and reading over new contracts.
During your first few years of business, every choice you make is going to have a huge impact on your bottom line. By overcoming these hurdles, you will put yourself in the best possible position for success.