Inside Tradr is all about helping small business be successful. Part of that obviously includes getting your problems fixed.

This post’s purpose is to highlight the problems small business and home-based businesses face. Feel free to get more added by commenting below!

32 Problems Facing Small Business Operators

Source: The Advice Spot

  1. Insufficient capital at commencement of business
  2. Inadequate management especially in the areas that are not the strong points of the owner/manager
  3. Ineffective bookkeeping systems
  4. Adverse accounting systems to highlight performance results
  5. Lack of understanding of the term ‘cash-flow’ and the significant role it plays within the business’ operation, in particular to the payment of GST (Goods and Services Tax) and PAYG (Pay As You Go) tax
  6. Insufficient capital for growth and expansion
  7. Over-dependence on debt financing
  8. Poor cash management
  9. Deducting funds from business income, especially in the beginning. Living too high!
  10. Not understanding the meaning of profit
  11. Poor debtor, stock and work in progress control
  12. Inadequate bank relationships
  13. Poor location
  14. Unsuccessful choice of a partner
  15. Failure to delegate
  16. Implications caused by larger exterior organisations
  17. Disinterest by owners (often the second generation)
  18. Owner’s inability to lead a management team – need for people management
  19. Lack of sources of equity finance for “larger” small firms
  20. Failure of owners to provide for succession
  21. Not allocating adequate time to address potential problems and solutions faced by the business
  22. Not separating spending on personal needs from business
  23. Poor staff relationships – Lack of acceptance of the need to build a committed staff team
  24. Lack of contact with major customers
  25. Not determining what business you are really in
  26. Not understanding the market
  27. Need to be careful with the employment of relations
  28. No formal Business Plan
  29. No Budget of Cash-flow Forecasts
  30. Lack of effective outside advice
  31. No strategic planning sessions
  32. Having not developed empathy with customers

What is the Single Most Important Problem Facing Small Business?

Source: National Federation of Independent Businesses (NFIB) Survey

  • Poor Sales (22%)
  • Taxes (20%)
  • Govt Requirements & Red Tape (19%)
  • Cost/Availability of Insurance (7%)
  • Competition From Big Business (7%)
  • Other (7%)
  • Inflation (6%)
  • Quality of Labor (5%)
  • Finance & Interest Rates (3%)
  • Cost of Labor (3%)

Which of the following is the most important problem right now for your small business?

Source: Small Business Majority (2012)

  • Weak customer demand (34%)
  • The cost of health coverage and other benefits (15%)
  • The level of government regulation (14%)
  • The level of taxes (12%)
  • Competition from larger companies (10%)
  • Availability of credit to invest in your business (6%)
  • Quality and skills of available workers (5%)
  • Don’t know (4%)

So you have read this far?  Now it’s time to have your say in the comments below!

Responses

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