Many small scale businesses have difficulty surviving because they’re working with limited resources and manpower. These obstacles prevent smaller businesses from reaching their highest potential. By addressing these common problems with a strategy or a backup plan, your small scale business will be less likely to stumble on its way to success.
1. Ineffective Marketing Strategies
Smaller businesses don’t have huge marketing budgets, as noted in a Forbes article, but they need to work twice as hard to get people to notice them. Through combining content, authority, and reach, small scale businesses will see the greatest return on their investment. Start a helpful blog that provides useful information to its readers. Maintain an active presence on social media and regularly interact with your community. Small businesses need to be ever-present to stay relevant.
2. Inventory Management
Small businesses have a tendency to do everything the hard way. Manual inventory management processes leave a lot of room for human error. Try using dedicated software or systems specifically designed for small business inventory management to streamline the process. Check inventory regularly, and make a little more time to organize according to your needs.
3. Losing Valuable Employees
Small businesses often lose employees because they can’t offer their employees the world. People see larger salaries, more benefits, and sometimes easier jobs. When that happens, you’re less likely to retain them. By recognizing, rewarding, and celebrating your employees as often as possible, you’re encouraging their loyalty. Constantly communicate with them about what’s going on within the business and how you’re performing. Keep them in the know and make them a part of the bigger picture. Their sense of commitment will increase.
4. Being Limited to Lower Salaries
Some people need a bigger paycheck to meet their financial obligations, and many small businesses can’t afford to provide that kind of money. Focus on what you can provide instead. Empowering your employees, encouraging their creativity and innovation, creating a friendly workplace, and going out of your way to let your employees know how much you appreciate and value them will ultimately mean more than the almighty dollar. Money can’t buy a fulfilling job, and career satisfaction is important to people.
5. Getting Great Talent
Highly qualified and experienced candidates are less likely to look at small businesses. Bigger companies offer more money and more room for advancement, making them the top choice for people who have the potential to climb the ladder. Entice employees with other perks that larger companies can sometimes fail to provide. Can you offer better work-life balance? As another Forbes article asks, do you currently have an employee wellness program? Can you allow your employees to work remotely when they want to have an easy day? Be as flexible as possible.
6. Growing Out of Your Workplace
Small businesses do grow naturally, even if that growth is slow. Many small businesses find that before they realize it is happening, they become crowded out of their workplace, according to Small Business Trends. Breaking a lease can be very expensive, and if you need to wait until your lease runs out, you’ll need to utilize a workaround. Investigate storage space for the things you have but don’t need to access every day. Allow employees to work from other locations when possible, and if you need to do so, outsource fulfillment to open up more warehouse space.
7. Finding Capital to Grow
Small businesses that want to become large businesses will need the money necessary to make that expansion. Sometimes it comes through a surge of profits and careful financial management. Other times, it comes from investors. If you have an outstanding track record, it might be time to start preparing your investment pitch. Go over the numbers with a fine toothed comb and be careful not to ask for more than what you need – you’re going to have to pay it back with interest.
Problems don’t mean the demise of your small scale business – they’re a test of your innovative thinking skills and your resilience. As long as you meet challenges with the necessary enthusiasm, you’ll find that your small business comes out stronger than ever before.
Rachel is a mother of 2 beautiful boys. She loves to hike and write about traveling, education, and business. She is a Senior Content Manager at Populationof, an online resource with information about demographic statistics of world population.