It is one thing to start a business and it is another to maintain it. Every business faces one challenge or the other, whether large or small, but there are challenges unique to small businesses, these challenges, most large companies have long grown pass them.
As a small business owner, I can categorically tell you that running a small business in Nigeria is not child’s play, the challenges are the opposite of the word ‘small’. It takes a lot of sacrifices, determination, creativity and hard work for your business to grow.
However, the hurdles small businesses in Nigeria have to jump may seem endless but with determination and the right team, any small business can scale through them.
Here are some of the major challenges of small businesses today and how you can solve them;
1. Money Management
For a small business to grow, it needs adequate funding. Money is required for a whole lot of things; to pay staff, pay rent, for office expenses and lots more.
Many small businesses start off on a very good note, with vision and a hardworking team but end up closing up within the first or second year because they fail to carefully plan and manage their finances.
In Nigeria, funding is a major challenge small businesses face especially if the business owner does not have enough money to run the business.
It is also quite difficult to get investors to aid you financially because they feel you may not have experience. The banks that should help out are not willing to give small businesses loans because they do not believe in them. Then when such startup companies or entrepreneur is fortunate to get a financial institution to assist and support them, the issue of high-interest rate or collateral comes up.
Sometimes seeking financial assistance isn’t the only solution. In most cases, the lack of adequate management of finances is the problem. In such a case, educating yourself is the key to overcoming money management problems.
2. Founder Dependence
If you need to be away for 6 months, will your business still produce income the next day? A business that can’t operate without its founder is a business with a deadline.
Many small businesses can’t operate without their founder. This is sometimes caused by the founder not being able to let go of certain decisions and responsibilities as the business grows.
The way to overcome this is simply for the business owner to give more control to their employees or partners.
3. Getting new customers
Most small businesses are battling with not just getting customers but also retaining them, knowing that the customers that count are repeat customers, and repeat customers are more likely to spend more than first time buyers.
The best way to get new customers and retain old customers is to price your products and services competitively, following up with your customers and encouraging them to come back with incentives and special offers.
4. Balancing Quality and Growth
Nothing kills a company’s growth more than if the people do not share a common set of core values. Developing a company culture that values quality and prioritizing this value in your training and team building will allow your company to grow and flourish.
Set parameters in place that will help you scale to meet demands while maintaining a high level of quality.
As a business owner, there are times where it is necessary to delegate tasks and projects, if you do not have competent and trustworthy staff you will end up carrying much workload, thereby hindering your company’s growth.
If your business is to continue to grow and thrive, recognizing and overcoming the common challenges associated with SME’s is essential. It is also important you ensure that the steps you take today don’t by themselves create additional problems for the future.
In spite of the challenges listed above, the willingness to strive to get to the top is key to your business not dying out.