When you start a business, you want it to be the best in providing the solution that you have come up with. However, you soon realize that running a business is more than launching a unique service/product. Such problems can make quite a few small business owners upset, but you would not have to worry about them had you known them in advance. So, here is a list of the three big problems that every small business faces.
1. Setting up a Marketing Budget
You just never know how much marketing budget you should set for your business. In reality, you do not see the outcome or value in spending money on marketing. However, you have to realize that marketing is an inseparable part of any business, online or on-ground. Most of the experts reveal that your market budget should be nothing less than 7% of the revenue you are generating from your business.
2. Getting Payments from Customers
Getting payments from customers can be a huge issue. They buy your products but want some time to pay for them. Since you do not have a strong system of getting the payment from the customers, all you can do is wait. However, if you know about the latest method of direct debit for small business, you will not have to wait for your customers to pay you. You can use a system that large companies use to get paid by their customers.
3. Cash Reserve Dilemma
Starting a business is not enough. It is only the first step of your journey. You have to find ways to expand your business and for that you need cash reserve. How do you reserve cash? Well, calculate your monthly business expenses 6 months in advance based on the data from previous 6 months. After that, you can easily decide how much money you can keep aside every month for the growth and expansion of your business.
If you can somehow create a plan to tackle these problems, you can make your small business a large enterprise tomorrow, without a doubt.