5 Most Common Small Business Problems and their solution in 2020 [Ultimate Guide]

5 Most Common Small Business Problems and their solution in 2020 [Ultimate Guide]

There are  various problems with small business, but we are discussing the five 5 most common problems with small business and their solution in 2020.

Concept of small Business:

The concept of small business is about the privately owned corporation, that is limited in size and in revenue depending on the industry.Small businesses surround us such as grocery sores, bakeries, hairdressers etc. Lawyers , accountant, dentist and medical doctors are also operating small businesses and faces problems.These four concepts often conflated with each other.

• self-employment: an organization created with the primary intention to give a job to the founders, i.e. sole proprietor operations.
• entrepreneurship: all new organizations.
• startup: a temporary new organization created with the intention to be bigger (at least have employees).
• small business: an organization that is small (a few employees) and may or may not have the intention to be bigger.

SMALL BUSINESS CHALLENGES 2020:

Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. The five most common small business problems are listed below

1. Lack of website or doesn’t use digital marketing
2. Money Management.
3. Uneducated stakeholder.
4. Time management.
5. Data protection.

• Lack of website or doesn’t use digital marketing:

If your business lacks a website or doesn’t use digital marketing, you’re already behind the competition. Digital marketing is a must for most modern brands is that it allows companies to foster better customer relationships. You need digital marketing if u want to reach a global marketplace.  It specifies the direction an organization will take to create new competitive advantages with technology, as well as the tactics it will use to achieve these changes.

• Money Management:

Managing money management is a perpetual struggle for most business owners. A cash flow shortage happens when more money is flowing out of a business than is flowing into the business. If you don’t manage your credit use, you can cause a variety of financial problems. Following are the top sign of lack in money management.

• Poor profits
• Negative cash flow.
• Borrowing to cover shortfalls
• Poor quality of products and services.

• Uneducated Stakeholder:

Stakeholders can affect or be affected by the organization’s actions, objectives and policies. People now thrive on information so small businesses must be able to effectively educate their stakeholders to keep them engaged.Due to untaught stakeholder,businesses have direct influence on their customers. If you want to succeed, you’re going to have to instruct your stakeholder in much the same way that larger, successful companies instruct theirs.

• Time Management:

Planning your work is the most important strategy for effective time management. Whether someone suffers from a lack of motivation at work or is dealing with a deep fear of failure that prevents them from taking action, procrastination can be paralyzing and lead to missed deadlines.

• Data Protection:

As a business, you will be handling the personal information of your employees, suppliers and / or customers. Cloud data specialist, Talend, discovered that 70% of global businesses failed to fulfil personal data requests made by clients within the one-month cut-off time stipulated by new data security rules coming out of Europe. The principal reason to keep your data protected is to ensure the safety of all the information you store. When it comes to customers, ensuring their data is held as safely as possible is the minimum most people will expect for corporation they invest time or money in.

TOP SOLUTIONS OF SMALL BUSINESS PROBLEMS ARE GIVEN BELOW:

• Digital Marketing:

Whether you have a strategy or not, at the heart of the Smart Insights ‘Opportunity, Strategy, Action‘ approach to improving digital marketing, is benchmarking to compare where you are now to assess the potential against where you need to be in the future. Website will provides additional details about your company that will boost exposure and visibility.

• Money Management:

In the money management, you have to separate business and personal funds. Putting in the time to create and keep up with a small business budget can simplify the way you manage money.If you want to better manage money, you must remember the funds owed to your business and pursue payments. Many business owners have multiple accounts, such as a checking account, savings account, and credit card account. Make sure you know how much you withdraw or spend from each account to stay on top of account balances.

• Educated Stakeholder:

Companies must be able to educate clients in engaging ways. Internally, small businesses should also be able to effectively pass on information between management and staff through reports that are easy to understand.

To convene a workshop at which senior website stakeholders are briefed on the factors that influence website-related decisions. The benefits of your educational efforts will become obvious soon after the workshop has concluded. You should brief stakeholders, particularly those with little web experience and  on emerging technologies.

• Time Management:

Tips to Manage Your Time as a Small Business Owner.

• Prioritizing: Prioritizing daily tasks is key to successful time management. When you prioritize, you make sure you accomplish the most important tasks first.
• Organization:  The process of organizing and planning how to divide your time between specific activities.
• Delegation: Delegation is the assignment of any authority to another person to carry out specific activities. It is one of the core concepts of management leadership.
•  Strategic planning: Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes.

• Data protection:

The Data Protection Act (1998) is the protection of any personal data that is in the possession of any organization, business or government, and how this information is used or shared. Following are the details of securing data:

• Encrypt your data. …
• Anti-malware protection is a must. ..
• Automate your software updates. …
• Use a firewall. …
• Disable file and media sharing if you don’t need it. …
• Don’t forget to delete old files from cloud backups. …
• Take care of privacy settings immediately upon setup.