List of Top Challenges Small Businesses Must Overcome

List of Top Challenges Small Businesses Must Overcome

Common Facts and Statistics about Small Businesses

Small businesses take up 80% of all businesses in the United States. Thanks to the current economic situation, many business owners face unprecedented challenges and opportunities that can either stand in the way or boost their chances of success. Listed below are the common mistakes that small business owners tend to make and what they can do to make their companies thrive.

Money

Where Small Businesses Turn to for Financial Advice
• 74% An accountant/bookkeeper
• 68% A financial advisor
• 65% Other small business owners
• 58% Family/friends
• 49% A banker
• 42% Online
• 42% A lawyer
• 29% A nationally recognized expert
• 26% A local non-profit or government organization

The Biggest Challenges for Managing Cash Flow for Small Businesses
• 45% Not receiving timely payments by clients and customers.
• 26% Low sales, profits, and business.
• 9% Not sending out invoices on time.

How Small Business Owners Pay Employees
• 72% of small business owners utilize online banking as an organization method.
• 40% use direct payments as a method of managing cash flow.

Most Significant Factors for Bank Choice
• 20% Convenient Location
• 18% Relationship Rewards
• 17% Access to Local Expertise

If You Applied within the Last Two Or More Years, Were You Approved for a Business Loan?
• 78% Yes
• 18% No
• 4% Don’t Know

How Do You Use or Manage Your Credit?
• 50% – I only use it for emergencies
• 23% – I am paying down my balance to have an available portion in the future
• 19% – I use it as the primary source of cash flow for my business
• 7% – My card is maxed out
• 1% – Don’t Know

Work

Hiring and Training
• 31% of small businesses see themselves hiring new employees within a year.
• A small business spends on average 40.1 hours and $1,041 worth of time and money to train a new employee.

Challenges That Small Businesses Have with Employees
• Finding employees with relevant skills – 22%
• Offering competitive salaries – 19%
• Hiring employees with a good worth ethic – 19%
• Granting competitive benefits such as health care and retirement – 18%
• Giving the same perks larger companies do, like a bonus, flexible hours, and child care – 12%

Marketing and Advertising

General and Online Marketing
• 47% of business owners wish to raise their marketing efforts in the next year.
• 75% of small businesses will work to increase social media marketing over the next 12 months.
• Local businesses are found by their customers by search engines (38%), specialty websites (17%), and social media (3%).

Effective Marketing Techniques of Small Business Owners
• 84% – Word of mouth and customer referrals.
• 55% – Networking with other small business owners.
• 46% – Direct mail or E-mail.
• 43% – Advertising through print, broadcast, and radio.
• 42% – Social media.

Signage Visibility
Below are some statistics indicating how small or unclear signage affects the visibility of a store. The participants were women of different ages and the percentage shows how the signage caused them to drive by a business or fail to find it.

• 18-24 Years Old: 55%
• 25-34 Years Old: 52%
• 35-49 Years Old: 42%
• 50-64 Years Old: 46%
• 65+ Years Old: 50%

After reading the above tips, a business owner should have a better understanding of their current problems and what other small businesses have to go through as well. Small businesses do not get nearly as much professional advice as the big ones do, so it is important for them to take what they learn and put it into practice immediately to improve their company status.

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