Is your home-based business thriving? Are you considering to grow or expand your business? Perhaps even move into a dedicated office space?
Well, growing a business is like raising a child. An idea is born, it is nurtured through its infancy, and then it reaches a point where it takes on a life of its own. You celebrate the milestones along the way, no matter how big or small. For your business these milestones could have meant building sales from nothing, hiring that first employee, collaborating with a company like Little Rock on printing your first marketing promotional products, or developing an official website to better represent you and serve your customers. These were major accomplishments and in most cases, they were the ones you fought hard for.
When it comes to growing your business, there are common challenges that often hinder the growth and success of a small business. With that said, every business and industry is different.
Here are common challenges and growing pains reported by small businesses in today’s economy and tips to overcome them.
Hiring Challenges
Hiring is one of the most common challenges small businesses face. Applicants are either under-qualified, too expensive, or there are simply not enough in the first place. In fact, there is a labor shortage happening in the US. According to data released by the US Department of Labor, 6 million people are looking for work and there are 7.4 million job openings. The resulting effect is more open jobs than people looking for work.
Overall, it’s a workers’ market and applicants can be picky with where they apply and demanding higher pay, better perks, and more.
This puts small businesses at a disadvantage. Small businesses have fewer resources than large businesses, meaning the pay is less, and benefits are not as comprehensive.
So how can a small business compete in the job market?
TIP: The key to winning here is to see hiring as an investment. Your growing business needs people who are going to be loyal and be all in for the long-run. This will only come from an employee who feels valued and well paid.
Employee Retention
Employee retention is a tricky one. Growing small businesses are working on a new process of refining existing ones, trying to secure financing or keep investors happy, all while getting the sale and making a profit.
The point is change is constant with a growing business and this can be hard on the employees. This can also be hard on the companies ability to retain an employee. Typically, a business would entice with monetary incentives, like pay raises or bonuses.
As we know this puts a small business, with fewer resources, at a disadvantage.
TIP: With this said, there are a few things you can do as a business owner or manager that goes a long way and does not require money. For example, effective communication is critical.
By sharing your mission and vision for the company, and keeping a pulse on personal successes or conflicts your employees may be experiencing, you are showing your employees you care. This also goes with encouraging feedback, listening and making adjustments. Show your employees their ideas are valued.
Customer Acquisition
Customer acquisition is a major factor when it comes to growing your business. However, as the size of your business changes, your competitors, market, and customer may as well. This can make finding new customers and keeping existing customers happy is very difficult.
In fact, nearly 33% of business owners find that acquiring customers is their biggest problem, especially with building their business.
TIP: The great thing about small businesses is that they are agile and have the ability to be personal. One way to ensure happy customers is a devotion to customer service. Focus on fantastic customer service to keep happy customers happy and fix the problems that unsatisfied customers are experiencing. It is a great way to win them over.
Another way to keep customers is to implement a re-targeting or follow up marketing strategy. These are typically automated messages to keep customers informed and your business top of mind.
Finances
Financial health is directly tied to the ability of a business to grow so it makes sense that this a major area of concern for small businesses, particularly those looking to grow. Common problems small businesses report are a lack of access to capital, unforeseen expenses, low margins, late and delinquent payments, and a high amount of debt.
However, 27% of small businesses have expanded in the last year, according to Visa’s 2019 Small Business Outlook. Small businesses have been able to develop new products or offer new services, buy more equipment, or move into a new distribution or sales channel.
TIP: When it comes to your small business’s finances and cash flow make sure you have the essentials in place. This will only help as you grow. For example, have a well-designed company website to generate leads and represent your business. Also be sure to have a booking system in place to track invoices, payments, payroll, and other accounting items. This will allow you to know the status of your finances at all times and be able to avoid surprises.
88% of Business Owners Are Confident in the Future
As discussed, there are challenges and growing pains that come with growing a home-based business or small business. These challenges are tricky to navigate but it is not impossible to find success in today’s economy. In fact, 88% of small business owners report feeling confident in the future of the economy and their business.
As a home-based business or small business owner, growth will be difficult but stick to your strengths and remember the reason you started the business in the first place. This mindset will get you through the growing pains and set you up for success in the future.
Check out this infographic below courtesy of Housecall Pro, for more information and statistics on the growing pains of small businesses and the challenges small businesses report facing in the home services industry.
