5 common problems many small businesses face

On Behalf of | Mar 24, 2017 | Business Law

It starts with an idea and a dream, and you have been successful at turning it into a business that continues to thrive and grow. Unfortunately, no matter how great your ideas or business skills are, you are likely to run into some type of growing pains as you stretch your employees, your customers and your goals.

Small businesses are a huge part of the American economy, and per the U.S. Small Business Administration, small businesses create two out of three new jobs in the United States every year. More than 50 percent of Americans work for or own a small business. Small businesses also have unique problems that can be overcome with the right approach, and acknowledging the problems is important to heading them off at the pass.

1. Recruiting top talent

As a new business, no matter how strong your reputation is, it can be difficult to attract and hold on to top talent. You want the best in the industry but may be limited in what you can offer them to keep them around. To counteract this problem, companies must find ways for employees to become passionate and invested in the vision and goals of the company, rather than focused on the immediate rewards.

2. Finding the balance between growth and quality

As your business grows and your products and services become more popular, it can be difficult to retain the same standards that made you so popular in the first place. While you do not want to become obsessed with quality, you also do not want to pass on subpar products to your customers. The trick is to find the balance between maintaining your brand and scaling growth.

3. Managing assets and money

There is a reason many small businesses start with a founder working a full-time job and building a business on the side. To sell your product, you need cash and capital, but you cannot get that without some type of income. Small businesses often face the challenge of balancing the need for personal income with the requirement for capital to grow the business.

4. Employee burnout and fatigue

The passion is strong when the company takes off, but fatigue may quickly set in once the work starts. Even the most passionate employees may fatigue and become tired after just a few months of long hours and emotional investment. Management and employees must find a pace that prevents fatigue and burnout.

5. Lack of experience and expertise

You may be an expert on your product, but starting a business is not a simple process. From paperwork to legal requirements to separating finances, it is important to have someone in your corner who understands the steps you must take to be successful. If your small business is facing challenges, we encourage you to speak to a qualified business attorney today.


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