So much attention is focused on business startups, that it’s easy to forget about the challenges involved in small business growth.
1. Cashflow management
If managing your cashflow is an issue, you may have to consider more options:
- It may be necessary to seek outside investment finance to help fuel growth
- If you are not comfortable with the financial side of the business, get help sooner rather than later: new expertise may boost small business growth considerably.
2. Customer base can affect business growth
Sales may be healthy and even growing but you still need to monitor your customer base.
For example, depending on one or two large customers is very risky and exposes your business to the possibility of failure, if you lose just one of these clients. Diversifying your customer base is vital to growing a sustainable business.
3. Owner exhaustion
Many business owners start a business while working another job. This gives the certainty of income in the early months but can mean working very long hours.
The challenge comes in trying to balance the demands of growing a small business with the need for rest! If you don’t have a clear head, this can seriously affect your ability to make sound decisions about your small business growth.
4. Dependence on the small business owner
For many entrepreneurs, the goal is for the business to operate profitably without them in the long term. The challenge is growing the business to a sufficient size to allow this to happen, and there a range of issues involved here:
- Balancing your need for new staff with the ability to pay and manage them.
- What level of expertise and training do they need?
- What new skills do the business need to grow beyond the skills you brought to the table?
- Can you learn to let go of the reins and trust staff to take on all or parts of your role?
At Accountant Online, we offer accounting services for new startups that aim to meet your compliance obligations, while also keeping costs low.
Accountant Online is a firm of award winning Chartered Accountants serving Ireland and the UK. We understand how important it is for you to meet your compliance obligations, while minimizing your tax liability. We aim to save our clients money without compromising on the quality of our service. Get in touch for a free consultation on 01 905 9364 or send an email to firstname.lastname@example.org