To assume that running a business is all sunshine and rainbows is one big mistake. Running a business is sleepless nights, debt, daily struggles, setbacks. It’s hard work that’s for sure! Yet, people are setting up their own business thinking that they’re going to go from rags to riches within a few months. Wrong. Within the first few months there’s going to be more money lost than there is made, and it’s the time where most new small businesses actually just throw in the towel. So, we’re going to outline the bad side of business to you so that you can hopefully protect yourself from it!
Financial troubles with a business is something to worry about obviously, but it really isn’t uncommon. Nearly all businesses are in some form of debt, and nearly half of all businesses require debt relief at some point. So, whilst it is normal to need a loan or two along the way, just make sure you’re sensible lending and watching what comes in and out of your company. Don’t borrow more out of greed! Another thing some businesses struggle with is managing their tax. New and small, or old and big, all businesses need to do it, but not all new and small ones have an accountant. In this case, you need to be proactive with tax planning, and always make sure that you’re asking for advice from a professional. Ideally, you should hire a tax consultant to make sure you’re doing things right, or at the very least make sure you hire an accountant just on the temporary basis to help you manage your accounts. As you get bigger having an accountant will be a must, but smaller businesses sometimes struggle unnecessarily on their own. If you ever do feel as though you’re in deep waters with money trouble, always seek help rather than covering it up.
Competition is the worst thing to a business, but there isn’t one business out there plodding by with no competition all. But, competition keeps things health as some would say, and without it you probably would end up being a little mundane with your business approach. To stay ahead of your competition you should always be making sure you’re marketing yourself better than they are. Whether that be through Adwords, social media marketing etc. You should also make sure you’re staying one step ahead of them in terms of innovation. Keep your products fresh and exciting, and you’ll always beat theirs!
You would think employees would bring no problems… wrong. They’re the main reason why a business can have so many problems. You need to try and make sure you’re building up mutual respect with them, or your business plan is just never going to work. The harder you work to please them, the harder they’re going to work for you. Always make sure the environment in work is healthy as well. If an employee doesn’t have an issue with you, they may with another, and that conflict can often ruin the productivity on shifts!