5 Drawbacks Of Running A Small Business
Entrepreneurs have been around for as long as profitable ideas
, but Rome wasn't built in a day, nor did the CEO of a company start working out of a top floor, corner office. You might be wondering then how anyone can grow a business from a basement and what solutions they found to get around the drawbacks of starting a small business.
Drawback 1: New businesses need capital
The rule of thumb is that the entrepreneur should have access to a sum of money at least equal to the projected revenue of their first year plus anticipated expenses. Without this sum, a new business runs a high risk of failure.
Drawback 2: Marketing a new business costs money
It's no secret that traditional forms of marketing can be quite expensive. However, with the evolution of social media marketing, getting publicity is easier and more effective thanks to the wide and integrated audience at one's disposal. A company website has the great value that the business owner working out of a bedroom can look like General Motors!
Drawback 3: The head chef also washes dishes
Things go wrong and multiple small tasks need to be completed. Whatever the business, the phone needs answering, the printer needs mending, the post needs sending, and the clients have to be invoiced. Whereas in a big office there is an IT guy to come to the rescue, working from home means queuing on the phone for hours with a service provider. Expect this and budget the time for it.
Drawback 4: Starbucks isn't the best presentation venue
The problem with a small or one person business is to appear credible against larger more established competitors. An account with a virtual office offers access to boardrooms, receptionists, PA's and more on a pay-per-service basis. It projects a professional image for a new business and it does so economically.
Drawback 5: New kid in town syndrome
Nobody gets fired for buying IBM. Choosing an unknown name presents risks for the buyer if things go wrong. Without the resources to reach millions of people, most successful small businesses tend to focus their efforts on niche markets. Becoming a big fish in a small sea may be a better strategy than being a small fish in a big sea.
Most successful entrepreneurs will admit to having faced many obstacles along the way. In fact they take pride in having overcome those obstacles. Success in business is a process. There is no beginning and end. There will always be hurdles to overcome. Don't feel discouraged. Running a small business has a lot of advantages, so hang tight. With patience, creativity and resourcefulness, that big mountain will soon look like a little hump.
by: Eddie Prentice
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