Running a small business is not as easy as it may think. With each new day comes a new problem and at times it appears as if I am trying to ride a bicycle while balancing diverse burning pedals. However, I know it can't be any different than it is with me. Let me share with you about my 3 biggest obstacles I have face in my business and how I have tried to deal with them.
So for those of you who are in the same shoes and would like to know what I would call running a business, or an ordinary interested onlooker on the issues on the establishment and running of small businesses, you may consider this posting a source of some wisdom or at least solace since you are not the only one struggling.
The Problems
Cash flow Struggles
Let me begin with money or lack of it in most cases. Money is the lifeblood of any business, but in my case a small local based clothing business, it is more of the breath of life. There are times when it seems like I am going to wait my whole life just for some customer who finally responds and makes a payment for something that I have already sold to them and now need that pay to cater for my own needs.
It is that you do not have the money; the truth is that you do not have the money at the time that you want it. There could be a big paycheck coming next week because I give out products to regular customers in advance to pay up at a later day. But such payment won't help to cover this week's expenses. This has been a constant struggle for me, and honestly it keeps me up at night most times.
Getting over this challenge has to push me to the wall, until I find creative ways to handle it. I have learned how to forecast and to predict when money would come in and go out. It's not a perfect thing to do, but it has been helpful in planning my cash flow better. Another thing that has been a huge thing for me to handle is inventory management. I have had to learn the hard way about the importance of inventory management. I discovered that too much inventory was tying up cash that could be useful elsewhere.
One thing that completely changed the game for me was proper negotiations of payment terms, and also offering small discounts to customers who paid early. Every little action helps keep cash flowing.
Wearing all Hats
This is quite difficult to get through, however I'm trying my best in the present situation. I am everything for my business in every meaning: CEO, Head of Marketing, Salesman, Customer Support and also cleaner. It is one thing to perform all these functions at the same time and I have even felt the urge to give up on some occasions.
The major challenge here is time management. We don't have all the day to work since there are only 12 hours in the day. This means I have to work myself late into the night almost every day. It's hard switching between all the tasks, but I have no other options.
To cope with this challenge, I am learning to delegate some tasks even if it is only in small ways. My wife and my eldest son have been of huge help in this. Helping
out on tasks that used to take up my time. I realized that trying to do everything by myself can wear me out.
Keeping up with Industry Changes
In today's business world, things move faster that I sometimes feel I am running just to stay put. New trends bring changing customer's preferences, and shifts in the market. It's sometimes difficult to keep up with, especially when you are so focused on meeting the sales target of your current inventory.
This issue often makes me worry about being obsolete or missing out on opportunities because I am not in tune with the latest trends. It's not just about stocking the newest trending products which of course can be more expensive than our regular stocks, but also about understanding how these changes affect my customers and my line of business as a whole.
In my line of business, being current is very important and for that I tried to keep in touch with my supplier to keep myself abreast of the newest trends in the industry. This is not something that easy to do considering the busy nature of my business. Still, I have come to appreciate that one needs to keep information because it is useful for business success.
Moreover, I also develop the habit of checking out what my competitors are doing that I need to improve on my business. I see my competitors as not just business rivals but as potential teachers. What are they doing differently to make things work? How do they adjust to change in trends? I believe that sometimes the best idea can come from observing what others are doing.
Lessons learned and a look into the future
Dealing with these challenges was a learning experience. I realized that taking on the challenges head on is better than doing nothing. Instead of turning blind eye like nothing is happening, I try to think ahead, make plans, and prepare for potential problems.
Additionally, I have understood the need to build a network of fellow small business owners that is very useful in monitoring since the market is always changing.
The most important lesson of it all is that I am learning to be good to myself. Being in a business on a daily basis is no joke and it is perfectly okay for me not to be under any pressure when I do not possess all the answers that I need at the time I need them. I learned to celebrate every small win and try to learn from failure rather than being discouraged by them.
As I keep pushing onward on this entrepreneurial journey, I am exposing myself to learning and growing. The type of challenges I face today may not be the same as the ones I might face next year, however, I have the confidence that the problem solving skills I am developing today will be a wall of defense for me in the future.