Top 3 challenges every small business owner faces

Read this blog to discover the solution to the top three challenges every small business owner faces.

 

Finding customers, money management, lead generation- there are so many challenges that small business owners face.

These common challenges can be concerning for small businesses and can even threaten their chance of survival.

Luckily, every problem can be solved with a solution. This blog mentions the top three challenges every small business owner faces and how they can overcome each.

Lack of funds

Money problems is arguably one of the biggest challenges small business owners will ever face. Without money and available cash, it can be difficult to keep business afloat. Every business needs a steady stream of money coming in to keep functioning. For small businesses, even just one late payment from a client can mean there isn’t enough cashflow to cover payroll, rent, and other outgoings.

To overcome money worries and concerns, small businesses and their owners can put systems in place to ensure invoices are paid promptly and on time. This stops organisations being at risk of financial instability.

Furthermore, accountants provide a range of accounting services to help small business owners make the most of their money. For example, at React Accountancy, our expert local accountants are always on hand to answer any questions, concerns, or queries. By providing an honest and open service to all our clients, we have the expertise and tools to help small businesses manage their business finances effectively.

Lack of time

Often running a small business means doing it all at once. Small business owners tend to also be the company accountant, bookkeeper, sales rep, marketing manager, and more. But there are only so many hours in a day to get things done. The smaller the business, the more tasks there are to manage and sometimes the workload can be hard to manage.

It is essential for small businesses to keep on top of tasks that need completing so important tasks don’t slide. Forgetting to submit taxes, pay suppliers, or chase payments can lead down a slippery slope.

Thankfully, there is a solution. Outsourcing to an accountant can significantly reduce a small business owners’ workload. A local accountant, like React Accountancy, will take care of a range of accounting needs and requirements so SME business owners can spend more time on what they enjoy- focusing on their passion. With bookkeeping, tax, and payroll support, by outsourcing to an accountant, small business owners are gifted back hour of their precious time.

Lack of business plan

With a poor business plan, or perhaps no plan at all, small business owners will be operating without crucial framework on how to navigate and grow business. It is important to know how a business will generate income, manage cashflow, train staff, and provide quality products and services to customers. Although it can be tempting to just jump right in, a bad business plan is often a contributing factor as to why businesses fail.

Having a strategy in place can help to see the bigger picture. Small business owners are then able to prepare for a range of scenarios and better identify opportunities for growth.

At React Accountancy, our accountants not only help SME owners produce a business plan but also help them to achieve personal goals. By identifying financial projections and minimising tax obligations, our experts put small businesses in control of their finances and steers them in the right direction.

For more information, get in touch with the team today.

We provide our services across Manchester, Stockport, London, Birmingham, Cardiff, Bristol, Glasgow, Leeds, Nottingham, Leicester, Edinburgh, Sheffield, Bradford, Coventry, Liverpool and Belfast.

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