Within the small business sector there can be many challenges, and in order to overcome most of the challenges the business owner must prepare strategies to ensure successful growth.
There are many challenges to owning a small business. Therefore, small business owners must plan for success and follow the plan in order to overcome these challenges. Lets examine the challenges that the small business owner faces:
FIRST YEAR CHALLENGES
* Knowing the Business
Small business owners must know the industry that they choose to enter, it is fundamental. The knowledge of the selected industry practically dictates business success. As well, choosing good business location & target market is challenging for small business owners.
* Knowing the Basics of Business Management
Small business owners need to know the basics of managing a business. For example, the principles of accounting and bookkeeping, production scheduling, personnel management, financial management, marketing, planning for the future, and more.
Many are under prepared in these areas, particularly in the financial aspects.
* Having the Proper Attitude
Small business owners must have the proper frame of mind, realistic expectations and strong personal commitment to the venture. Maintaining the necessary high energy level over time is another major challenge; but, with the right attitude, it can be a fun challenge. Realistic expectations are also important.
* Having Adequate Capital
Access to capital is one of the major challenges. Ability to raise capital can determine the success of getting a good idea off the ground. As well, small business owner must have enough capital to withstand slow periods and competition during that first year. Small business owners agree that having sufficient capital is necessary to survive the first year, which without doubt will bring unforeseen challenges.
* Managing Finances / Costs Effectively
Cash flow is the persistent financial management...