Owning a small business has its own set of challenges that few are prepared for. Every day there is a new issue and sometimes it can feel like we are riding a bicycle juggling various burning pedals. For those in the same position and would like a peek into what it is like to run a small business, or for anyone concerned in curious observation of small business hardships, this provides both wisdom and comfort.
The Problems
Cash Flow Challenges
Money is the lifeblood of any business and in small local based clothing businesses, money is the breath of life. There are times where it feels like we wait an eternity for clients to finally catch up to us in responding and making payment for products we have already sold. These clients are critical to allow our business to continue to meet its growing demands.
It's not that there is a lack of money - it's that it's not available at the right time. A substantial paycheque may be on the way next week from regular customers receiving products on credit, yet those future payments won't necessarily help address this week's cash flow issues. This vicious cycle is exactly what keeps every business owner awake at night.
Overcoming this hurdle forces entrepreneurs into the wall until they explore innovative options. I know how to project the inflow of capital and outflow of expenses. While it's not flawless, being aware of expenses and projecting when cash will come in &M out is far less stressful. The second lesson is about controlling inventory; there is such a thing as too much inventory! Too much inventory takes cash out of play and into storage.
What completely takes stress out of the cash flow equation is effective negotiation of payment terms and providing customers with early payment discounts, even if it's a small discount. Every little bit helps to maintain cash flow.
Wearing all the hats
This can be an exceptionally difficult juggling act to navigate, I am everything. In my business, I'm most certainly the CEO, Head of Marketing, Salesman, Customer Support, Cleaner. One person often performs all of these functions and change might seem like the best option. Sometimes it's hard not to quit.
Time management is another major concern. There is a limited amount of time to work, and there are not enough hours in the day! Basically, you need to work late into most nights. The act of switching from one task to another can also wear you down, and it doesn't always feel like there is much of another choice.
Learning to delegate tasks, even to a small extent, is a necessity. Family members can become a valuable assistant, and for the first time, there are tasks that previously consumed very precious time. The harsh lesson learned is that if you attempt to do everything yourself, you will burn out.
Keeping Up with Industry Changes
Business is changing so rapidly now, that sometime business leaders struggle to see a gap, and they wonder if they are simply trying to survive, or stay in the game. The latest trends introduce new customer expectations and marketplace dynamics. It's very difficult to stay up to date while trying to meet modern-day sales.
This will have a tendency to create fears about dusty, or the risk of not being around to grab opportunities down the pipeline due to not keeping pace quickly enough and lagging behind with the new trends. It is not necessarily as simple as merely filling up with the new trendy stuff (for with more abandoned price tags than standard filled products) but also inquiring as to what is the rate of effect of these shifts to clients and your business.
In retailing, being current is everything. I try to keep in touch with suppliers' representatives so they can familiarize me with the latest fashions, trends and ideas in retailing. As much as it is not always feasible with the pressure of running a busy day-to-day business, staying up to date definitely can help businesses in their achievement.
Also, keeping up with the competition gives small business owners great opportunity to learn. The competition is not just business competition; they can be your best teachers. What is your competition doing differently? How are they changing due to trends or change? Outside of the box thinking, sometimes you will learn the best by observing other companies and what they are doing.
Lessons Learned and Looking Ahead
The experience of facing these issues would be one of learning. Meeting them head-on is more constructively effective than avoiding it. Rather than in the dark, successful entrepreneurs face issues head-on, prepare ahead and think ahead, plan and strategize for the next issue.
Reliance on a limited number of fellow entrepreneurs who are similarly faced with the same challenges may help small business owners with keeping up to date in an ever-more dynamic marketplace.
One of the biggest things that we can learn, and probably most importantly, is the lesson of compassion towards ourselves. When you're an entrepreneur and you're up against that wall every day, it gets really heavy and tough some days, and we don't know it all to begin with and that's okay! We need to pat ourselves on the back for little wins and learn from our failures, instead of being mad at them.
As we keep fighting our entrepreneurial war, we are still receptive to learning and enhancing. Tomorrow will also present its own problems, but we have discovered that the problems we bear every day benefit us in refining our problem-solving skills to defend ourselves against whatever we are fighting.
Image used is from Meta AI.