The Top 10 Challenges That Business Owners Face – And How to Conquer Them Pt. 1
Business is full of twists and turns, ups and downs, and challenges and triumphs. Some challenges are completely unforeseen, but others are so common you can practically bet on them happening. In this article, I’d like to cover some of the most common challenges business owners face, as well as how you can overcome them.
Note that this is a two-part article series, and even more in-depth information can be found on the three-part podcast series I recorded for my 10x Podcast here.
1. Cash Flow
The root of most cash flow issues in business is not actually cash flow – it’s obscurity. And obscurity is actually fairly easy to fix by taking dramatic action. First and foremost, you should know that your sales process needs to be ongoing, whether you have no cash flow or a veritable flood. If you need to get your sales process in order, make sure to check out my Business Mastery Video Series – it’s free.
Note that cash flow issues are never about reducing expenses. You cannot “cut” your way to success. Cash flow always begins and ends with sales.
Once you have the required cashflow, you need to create a budget for your business that factors in annual, monthly, and even weekly expenses. Total up the annual amount and then divide by 12 to get your business’s monthly budget.
Rule #1 of profitability: never spend money in your company. i know this seems counterintuitive to what I just said above, but hear me out. The only time you should ever have expenses in your business is as investments. If something costs money, be it a computer program, team member, or new machinery, you need to evaluate how it can offer a return for it to be an investment. I.E. if that program saves you a ton of time on tasks you were doing manually, that time can translate to more sales making the program worth the investment. If that new team member is a killer marketer who increases your revenue by more than you are paying them, then they are a sound investment. If that new machine is just a fancy new gimmick that does nothing for your business, then it is an expense that should removed.
To keep track of these investments vs. expenses, all bookkeeping needs to be done by the tenth of the month every month. This gives you time to review the books and evaluate what is worth the investment and what is not.
How much can your team get done in a given day? This is your productivity, and issues with it can be caused by a few different things.As a new business owner, you may need to put 60-70 hours per week because it will be just you doing most everything in your business. But once you begin to get some traction, you need to hire support. This support will cut down your work hours per
As a new business owner, you may need to put 60-70 hours per week because it will be just you doing most everything in your business, but you will not be the most efficient at some tasks. Once you begin to get some traction, you need to hire support to help in these areas. For example, you may not be great at customer support or accounting. These would be the team members you need to hire. This support will cut down your work hours per week, but can double your productivity as team members focus on JUST the areas that they are best in.
Your own personal productivity all comes down to one thing: your morning routine. How you plan your day will decide exactly how productive you are. Develop a routine that works for you, but includes reading, eating, and writing out your goals/plan for the day. For this, I highly recommend the book Sleep Smarter by Shawn Stevenson.
It’s no secret in the business world that it’s not what you know…it’s who you know. Develop a POI network and solidify those relationships.Through those relationships, you can make even more strategic connections for a successful resource network. This is invaluable when you hit snags or want to find new ways to grow your business – and at times it could be the difference between total failure and wild success.
Again, this comes around to the issue of obscurity. However, this can be fixed with a marketing magnet. Online, this is a freebie that offers tremendous value to entice customers to come to you (I.E. join your mailing list, register for an event, request contact from you, etc.) Formula: top 10 questions you are asked, top ten tips for your market, etc. Sit down and create a video for it. It does not need to be a professional or expensive video – just the best you can make with your current resources. Then, you can use this to begin attracting new people to your mailing list, who can very easily turn into customers.
Other options include getting out in person. Attend local workshops and seek out speaking opportunities. Do not expect to sit at a desk nd allows advertising to do all of the work. Once you have overcome the obscurity issue, you will see customers coming to YOU quite often.
That is the end of part one of this series. In part 2, I will cover the last five common challenges that I see business owners facing. But you can also continue the conversation over on the Facebook Group. See you on the inside!