Top Challenges Small Business Owners Will Face in 2019
With the end of 2018, small businesses and start-ups started the process of closing their books. More than 7 million people became jobless from 2007 to 2009 because of free fall of US economy in 2009 and the stock market had to face loss of trillions of dollars of wealth. According to a recent research conducted by Westfield, it revealed several challenges small business owners face. They also mentioned the tools and resources which are useful for small business owners to solve the top challenges.
In comparison to big ventures, small business owners are vulnerable to severe changes in the economy. The reason why they operate with tight budget and small profit margins, the success of the venture is sensitive to the reasons that affect consumer behaviour and cost.
The small businesses failure rate is actually high. As per USSBA, more than 48% of US small businesses couldn’t survive in first 5 years and only 25% made it to 15 years. There are several reasons for this such as lack of money management skills, poor business planning, rigid business modelling, expanding soon and lack of marketing and promotional activities.
Due to aforesaid factors, challenges such as cyber security, hiring new staff, acquiring and maintaining new customers, the thrust of achieving balanced personal and professional life and finance issues are main concerned areas of States new businesses in 2019.
According to a study, 4 out of 5 small businesses, owners discussed that 1/4th of their half customers face some kind of cyber liability coverage. While insurance agents talked about how they recommend their customers about cyber coverage which new venture customers think they don’t require cyber coverage, and hence they do not understand what cyber liability covers. New ventures thus, don’t have set budget for such coverage.
Doesn’t matter whether you need 5 or 500, searching and finding right personnel to help your business to run is tough. As per research, most of the owners have to deal with several challenges while hiring the qualified staff. It is hard for them to fire and hire reliable employees who can stay on-board for a while. Getting right-fit person has less to do with the fundamental and technical competencies and had inclination towards behavioural attributes i.e. soft skills. People sharing your values, vision and purpose are the potential leaders who are useful for developing your company. This helps business navigating through tough situations.
Acquiring and maintaining new customers is one of the biggest challenge small business owners face. Changes in consumer behaviour due to internet and social media have made it difficult for businesses to stand apart from the rest. It is though benefit for the small business owners which big organization does not have. They try to involve and engage the customers and are accessible via social media, blogs and yes, website.
Increase in revenue is a part of profitability but entrepreneurs should not just focus on increasing revenues rather must look for the ways to streamline the costs. During economic uncertainty, companies cut costs to stay profitable. Margins are compromised if sales are increasing and results in increase in costs of production. Achieving stability in personal and professional prospects is bit difficult for the business owners as they keep meddle between customers, vendors and clients. Initially it would be difficult for them to balance the two but once the venture gets on track, the things start falling in the place.