Starting a business is not a child’s play! Entrepreneurs know the immaculate preparation and planning they need to do for years to launch their business. Deciding when to start a venture takes gumption and a leap of faith. Most entrepreneurs keep on working as employees caught up in a dilemma whether or not to give their small business idea a try. However, if yours is a small business organization, your level of challenges is slightly more because you have limited capital and human resources.
What are the challenges, according to Eric J Dalius?
The market is competitive, dynamic, and is expanding at a fast pace. And whenever a new brand walks into the market, it gets compared with the existing and established names. According, to Eric J Dalius some of the core problems that small business witness include the following:
- Eric Dalius on channelizing limited resources
Businesses cannot run without human and capital resources. Small business firms have both but in limitation. Hence, these firms cannot expand like the established and popular brands in the market. Most small business entrepreneurs overcome this issue, take a business loan, and hires candidates. It can be a risky proposition, as there’s no guarantee of immediate profits and high revenue. Hence, the ideal solution is to work around with limited resources and cash at hand. According to Eric Dalius, it’s wise to make short-term business plans and go slow but steady and expand the business.
- Cash flow management
Currently, given the pandemic situation, small business entrepreneurs need to streamline their cash flow management. If there are pending invoices, they need to collect the payment at the earliest. It will act as a saving that they can use when the situation aggravates further in the future. Small business owners will not have much business expenditure scopes in 2020 until the pandemic curve flattens down. But that is no reason to get negligent about cash flow management. It is essential to stay afloat and pay the regular business bills, for which you need cash.
- Correct candidates
The majority of small business owners are in a hurry to start their business fast. And that makes them recruit the candidates in haste, only to find out that they might not have the desired experience. At this point,EjDalius says that small business entrepreneurs don’t have the extra time and resources to train the candidate or appoint another candidate. Hence, the solution is to take things slow and spend time in hiring the right talent.
Study the resume and ask the correct questions during the interview. Ensure you hire a candidate who is willing to devote his or her time for the betterment of the company and is equipped with the skills to accomplish the KRA (Key Responsibility Area) required for the position. That way, you will be developing a competent team.
In 2020, these are the core challenges that small business entrepreneurs might be witnessing. You can adhere to the resolutions listed to move ahead and not get stuck with the problems.