Starting your own business might be one of the most exciting things you’ll do in your life. Unfortunately, according to the stats, only 50% of small businesses make it past the four-year mark. These kinds of numbers aren’t very optimistic and may be discouraging for an entrepreneur just starting out. But what exactly is holding businesses back from sustainability and what can you do to make sure this doesn’t happen to your small business?
Cash Flow and Money Management
Many small business owners underestimate the difficulty of managing their money, especially when it comes to separating personal and business finances. For the first few years business owners need to be prepared to lose money, which is way having a cushion of savings is always important.
There’s also the problem of unexpected expenditures that may arise, or sudden shifts in the economy. You may also find that you’re not meeting the expectations you laid out in your business plan.
It can be hard to see the big picture when it comes to money management, especially if you’re background isn’t as an accountant. That’s why it’s important to get the support you need by using cash management tools like the ones that Sage Software provides. There are a number of Sage ERP solutions that can help you manage your business, especially when it comes to finances.
What is an ERP system and how can it benefit your business? ERP software or enterprise resource planning software is a suite of applications that gets integrated into your business in order to manage core business processes. ERP solutions can definitely make your life as a business owner much easier.
Marketing Challenges
With a swarm of competition out there it can be hard to feel noticed among the masses. Every business is clamouring for attention and they dish out lots of money to do so. But getting your own product out there doesn’t necessarily take lots of money and there are affordable or free options you can utilize.
The most essential and affordable asset available to you is social media, so it would be a good idea to hire yourself a social media expert. They’ll be able to spread brand awareness through applications such as Twitter, Instagram, and blogging, not only via posting but by making connections with potential customers online.
Recruitment
With so many people clamouring for a job you might think that it will be easy to recruit the right employees for your small business. In fact, finding a good employee can be like searching for a needle in a haystack.
When you do find the right person, don’t hesitate to invest in them by providing the right salary and satisfactory training. When you invest in your workforce you’ll ensure that you have a foundation for success.
Keep Your Chin Up
Starting a new business won’t be easy and you’ll face a number of challenges. Just remember that it’s common to struggle in the first few years and that many other businesses go through the same problems, even if it’s not visible on the surface.
