Common Small Businesses Issues
Updated: Sep 12, 2020
As a problem solver, I am always listening, observing & analyzing when speaking with clients.
While assessing their needs, I come across common issues or circumstances that a lot of small businesses share.
To name a few:
1. Incorrect or Lack of Knowledge about their business structure
"I did an S-corp because they said it's better tax write offs"
2. No financial or strategic plan just "I want to make money" or "I want to be my own boss"
3. Not being mentally or emotionally built to be an entrepreneur
4. No record keeping systems in place. Therefore no proper tax planning & compliance.
Let's touch on these in depth & apply some solutions:
1. There are certain basics about starting a business that you are responsible for learning. Even if you are hiring a professional to set you up, understand that you have options in the entity structure. Also, that whichever you select, it should include your future plans for your business.
Which brings us to...
2. Imagine, you have bills due on certain days & expenses.
You receive your paycheck and you just randomly pay some of them until the money runs out. No checking the due dates.
This wouldn't make sense with your personal finances, don't do it with your business.
Create a budget. Create a financial plan where over time those line items and amounts increase over time. Have direction for your finances. Strategize.
The moving parts and their placement is how you get from one level or stage, to the next. Positioning is crucial, so make sure your business has a path of where it wants to go by setting goals, objectives and milestones.
3. YOU DO NOT HAVE TO BE AN ENTREPRENEUR IN ORDER TO BE A BUSINESS OWNER. Yes, I'm yelling because taking a leap of faith does not necessarily mean quitting your job to pursue your business ventures. Especially not a job that you actually like and generates sustainable income. And this is coming from someone who quit their job with no savings and landed on their feet, in a better situation and hasn't been an employee since. No luck. No wishes. I was born for this. Not everyone is.
There's a mental and emotional posture that you have