Challenges Facing New Small Businesses

You decide to start a small business after years working for other companies. So, you draw up a plan and delineate your expenses, and after opening shop, you attract a new client or two. You might think the only way to go is up, but for many small businesses, the early stages bring the most floundering and uncertainty.
So, at this point, what issues do many companies of this size face?
Client Retention and Reliability
The first step is getting the clients, but many businesses find that, even once they render the services, the client is slow to pay. In the meantime, you still have bills to pay.
Mostly, at this stage, your business is being treated like an independent contractor rather than a separate entity, which means that, for right now, your client might feel as if he or she is in charge.
Having Enough Money
In line with the first point, it’s difficult toward the beginning for a business to have enough money to pay all bills, insurance, and employees. As a result, your company needs capital from another source.
Along with this point, it’s imperative to keep meticulous financial records, and when a company fails to forecast, report, and monitor its finances, this area suffers even more.
Putting in the Hours
Due to the push the company needs, all employees start putting in a large amount of hours – think more than 60 per week – from the start. Yet, this approach, while it might help things get off the ground, leads to burn out, fatigue, and poor decision making.
As a result, it’s recommended that your team develops a stronger structure and procedures, delegates as much as possible, and organizes their time.
Economic Downturn
When the economy takes a hit, small businesses feel it the most. As a result, companies of this size, particularly if they’re just beginning, end up having to lay off employees to financially keep up, or just close up shop entirely.
If you’re looking for an insurance policy ideal for a small business, get to know your options and coverage through Ion Insurance. To learn more, give us a call today at 203.439.2815.