5 Challenges Faced by Small Businesses in 2015

Companies face difficult challenges in today’s competitive business world. Some researchers estimate that about 50 percent of companies only last four or five years before going out of business. To avoid failure, entrepreneurs need to know how they can face these five common challenges in 2015.

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1. Keeping Up with Regulations

Large companies hire lawyers to make sure they follow the latest regulations for their industries. Small businesses rarely have enough money to keep lawyers on retainer. This can make it difficult for them to keep up with evolving regulations.

There are several ways to lower the costs of regulatory compliance. Consider meeting with a lawyer only when necessary, hiring an HR manager who understands OSHA regulations, and reading news updates about your industry.

2. Accessing the Credit Needed to Grow

It’s very difficult for small businesses to grow without accessing lines of credit. The costs of real estate, payroll, and merchandise are simply too high for small business owners to pay out of pocket.

If your company has struggled with bad credit, then you may think you cannot get the credit you need to grow. It is possible to get business loans with bad credit. Explore your options to make sure you get low-interest loans that will help your business succeed without creating too much debt.

3. Reaching Potential Customers and Clients

The cost of a marketing campaign can quickly exceed a small business’s budget. New companies can expect to spend between 20 and 30 percent of their budgets on marketing. That’s fine for large businesses that make millions of dollars a year. Small businesses, however, may not make enough money to fund campaigns that use television, social media, radio, and print ads.

Small businesses can make the most of every marketing dollar by focusing on the outlets that work best for them. Concentrating on specific demographics may also improve the return on investment.

4. Hiring Top Employees

The most talented employees usually look for jobs that offer exceptional benefits and pay. Small businesses may lack the resources they need to compete with larger employers. Less brand recognition can also make it difficult for small businesses to attract top talent.

Small businesses that cannot offer higher salaries should concentrate on giving employees benefits that they won’t get from larger companies. Flexible work schedules, for instance, could attract top employees who want more control over their professional and personal lives.

5. Losing Motivation

Operating a small business is like running a marathon that never ends. Every day presents a new challenge. Even the most determined entrepreneurs can start to lose motivation after a few years of constant work.

Motivation is essential to developing new ideas that keep small businesses ahead of their competitors. Avoiding burnout, however, often requires steps that seem counterintuitive to hardworking business owners. Some of the most important things entrepreneurs can do to avoid burnout include:

  • Taking vacations
  • Drawing a line between work and off hours
  • Getting plenty of exercise
  • Eating balanced meals

Small businesses will face several challenges in 2015. How do you plan to make your business succeed while your competitors struggle?

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