Being a small business owner comes with a lot of rewards and perks that those working the 9 to 5 grind never get to enjoy. But at the same time, entrepreneurs can face a myriad of challenges that can be quite stressful. Regardless of the industry, there are five concerns for small business owners that appear to be most common across the board.
1. Obtaining Capital
According to an article on Fast Company’s website, “Cash flow was a top concern for businesses with 11 to 50 employees.” However, it’s likely to still be a concern for even smaller companies with fewer than 11. Obtaining adequate capital and keeping it pouring in can be extremely stressful, especially during the initial stages when you’re just getting off the ground.
It’s smart to have a few potential funding resources rather than putting all of your eggs in one basket. Ideally, an angel investor with unlimited resources will believe in your business and donate enough to get you over the financial hump.
2. Growing Revenue
What small business owner isn’t concerned with maximizing profitability? In fact, a small business report from Wasp Barcode Technologies found that this was a top challenge for 43 percent of U.S. small businesses in 2016.
While there’s no magic solution for growing revenue, it’s helpful to focus heavily on marketing and take a diversified approach where you utilize several different channels. You should also place an emphasis on customer retention because this will be essential to your long-term revenue growth.
3. The Increasing Cost of Employee Benefits
Offering comprehensive benefits packages to employees can be a major selling point for finding and retaining top talent. However, the cost of employee benefits is on the rise. Healthcare in particular can be distressing to employers.
One way to more effectively manage these rising costs is to go through a human resources outsourcing (HRO) company. They are experts at finding affordable policies without sacrificing quality.
4. Government Regulations
Let’s be honest. Keeping up-to-date with the unending changes to rules and regulations on the federal and state level can be overwhelming. What’s even more stressful is ensuring that your company remains compliant. Even with the best of intentions, one wrong move could lead to harsh penalties and messy litigation.
You can stay abreast of what’s relevant to your business by routinely visiting two resources on the Society for Human Resource Management’s website. One covers federal legal news and the other offers information on state workplace law news.
Partnering with an HRO firm can be helpful for this as well because they can ensure that you’re covered, greatly reducing the odds of dealing with litigation.
5. Workload Management
Growth is good. But sometimes small business owners may find it difficult keeping up with demand. Whenever there’s consistently an excessive workload, it can leave everyone feeling a little fried.
One way to combat this is to use temporary staffing to ensure that there’s always enough manpower without having to commit long-term. Often staffing agencies have access to highly skilled workers that can be a major asset to your company.
There’s no shortage of concerns for small business owners. But with the right planning and strategy, nearly every stressful situation can be overcome.