Each year, there are millions of new businesses that get started across America. But many of them fail after just a couple of years, which can leave people wondering how this could happen in a place known for opportunity and growth. Well, one of the main reasons is the lack of information that is available for how to get through all the problems that can come up during this time. If you want to know more about how to make sure this doesn’t happen to you, keep reading for a list of four of the common challenges that new business owners often face and some simple solutions for how to conquer them successfully.
Not Enough Funding
When a business first begins, there often won’t be enough revenue to cover all the initial start-up costs and the expenses of producing the products or services that are being sold. So it is common for business owners to seek outside sources of capital to give them a cushion until they can make more money.
But getting a business loan approved through a bank is next to impossible, especially if a person has a poor credit history or their business is too new to have a credit history of its own. The possible solution for this problem is to apply for a small and short-term second-chance loan through a specialty loan company that isn’t as likely to turn down a person based on this criteria.
Complex Business Filings And Regulations
There is an enormous amount of steps that have to be taken in order to complete all the filings and paperwork that are needed to run a business legally. And if it isn’t all done properly, officials on both the state and local level will be quick to issue costly fines or citations.
So before a business ever opens its doors, it is crucial to directly consult with the secretary of the state that the main operations will be in. They have a special department that handles new business name registrations through the state, so they can answer any questions and help ensure that all the forms are submitted properly. Don’t rush to fill anything out though. A plan should be written up with all the steps that have to be taken at first in case any of the forms have to be sent in together. This will help save a ton of time and money.
Finding Quality Staff Members
For a business to be successful, it needs to be built up by a team of well-trained people who are dedicated to working hard to fulfill the company’s mission. But finding people like this is painstakingly difficult. A multitude of the applicants won’t have the skills or knowledge to do their jobs properly. And still more will be completely unreliable.
Sometimes, businesses try to get past this problem by simply hiring anyone who applies. But in the long run, they end up having to fire them or retrain them, which wastes time and money. It also sinks the company further into the red because it reduces productivity and turns away customers who are unsatisfied with the poor quality services and products that they end up getting from the unhelpful employees.
One way to overcome this obstacle is to contact a local employment agency. For a small fee, they will sift through all their job applicants to find people who are the best match for key positions that a business needs to be filled. Some of them will even help with the interviewing process.
Creating A Business Plan
It is surprising how many businesses are started without any kind of a plan. Sometimes, this is simply because the owners prefer to work spontaneously, and their decisions tend to switch on a dime. But while nothing technically has to be carved into stone to guarantee that things will run smoothly, having some kind of an outline or format to go by is necessary for staying organized and producing quality goods and services that customers can count on.
Setting up a business plan is no easy task though, especially for those who want it to be as detailed as possible. So business owners can either go online to purchase one that has a basic layout of information that they need or ask a business financial planner to help them create one that is specifically tailored to what they are looking for.
Hopefully, you found this article to be a helpful start in your quest to ensure the success and longevity of your new business. Feel free to share it on all of your social media pages with other new or potential business owners that you know. But remember, this is only a short list of some of the business challenges and problems that business owners face. For more information about this subject, be sure to consult a business financial planning professional.
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