Conquering Big Challenges: A Roadmap for Your Small Business

What are the major challenges of small businesses?

1. Lack of Capital and Solutions

Every business requires a certain amount of capital, but small businesses often struggle due to a lack of sufficient funds. One of the biggest challenges for small businesses is the shortage of adequate capital or investment. Starting a business requires initial funding, which is not easily accessible to everyone. Funds can be raised through bank loans, investors, equity partnerships, or crowdfunding. However, without a well-structured plan, navigating these options can be quite complex. 

Possible Solutions:

• Various banks and NGOs in Bangladesh provide loans at low-interest rates for small and medium-sized businesses.
• There are various government grants and support programs available for SME entrepreneurs. It's important to stay informed about them. Research the business support projects offered by both government and private organizations to get the necessary assistance for your business.
• Set a payment schedule and manage cash flow.
• Create a proper business proposal and present it to potential investors.
• If you can't secure significant investment, start your business in small steps or phases. This way, the initial investment will be lower, and you can grow the business with your own money.

2. Lack of Digital Presence in Marketing and Branding

In today's era, growing a business without an online presence is quite difficult. However, digital marketing and branding pose a significant challenge for small businesses. Gaining customer trust as a new business is not easy. Moreover, a lack of knowledge or limited understanding of digital marketing, social media promotions, etc., often holds businesses back.

Possible Solutions:

• You can create a simple yet professional website for your business. An acceptable website will help you reach your customers effectively.
• Give importance to social media marketing. Use Facebook, Instagram, LinkedIn, and other digital platforms for business purposes.
• Over time, get accustomed to online advertising. Use Google Ads and Facebook Ads to target audience marketing. Promote your products or services using social media platforms.
• Connect with the local community to expand your business network.
• If necessary, maintain direct communication with customers and monitor their feedback on digital platforms, using it to improve your business.

3. Facing Intense Competition

In any business sector, the presence of many competitors makes it difficult for new businesses to carve out a space. Especially, staying competitive against large companies is a significant challenge for small businesses. However, small businesses can survive in competition with big companies through strategic planning. Therefore, to face this intense competition, a good plan is essential.

Possible Solutions:

• Do something different from your competitors. Offer unique products or services. In simple terms, bring innovation to your business.
• You need to identify a specific customer zone, known as your target audience. From the beginning, define your business's target audience. This will make marketing easier.
• Promote your business through both online and offline channels. If necessary, focus on brand building as well. 
• To do this, identify the unique selling point (USP) of your product or service. Then, market your product by focusing on that USP.
• Offer special benefits or deals to customers that your competitors do not provide. Keeping the price slightly lower can also be an effective strategy.
• Customize your products or services based on the needs of the local market or community. Always stay updated.

4. Difficulty in Finding Skilled Employees and Retaining Them

Finding and retaining skilled employees is a major challenge for small businesses. Compared to large companies, the salary, benefits, and perks are often lower, making many reluctant to work for small businesses. Even if they are interested, they may not want to stay for long.

Possible Solutions:

• You need to create a great and positive work environment for employees, where they feel at home and comfortable in their workplace.
• Instead of always blaming employees, focus on improving their skills. If necessary, enhance their abilities through training.
• Motivate employees by offering performance bonuses and other incentives.

5. Negligence in Financial Management and Accounting

Financial management is a complex issue for small businesses. Often, not keeping accurate records of income and expenses leads to losses. Additionally, lack of knowledge about taxes, loan installments, and similar matters can exacerbate problems. Furthermore, if cash flow is not managed effectively, it can create major issues for the business.

Possible Solutions:

• Digitally store the records of daily transactions, including income, expenses, and outstanding dues. Maintain digital records of financial transactions and regularly analyze or audit them. For more detailed information, read on— Why is Bookkeeping important for small businesses?
• Make an effort to collect outstanding payments from customers on time.
• Reduce unnecessary expenses and invest in profitable areas.
• It would be very beneficial if you could seek the help of a skilled accountant or finance expert.
• Definitely create a realistic budget and try to stick to it.

6. The Challenge of Keeping Up with Technology

In today's era, running a business without the use of technology is nearly impossible. However, many small business owners fall behind in adopting technology, which puts them at a disadvantage in the competition. This is one of the major challenges faced by small businesses today. In the digital age, technological skills are essential for entrepreneurs.

Possible Solutions:

• Get accustomed to using business-related software. Use necessary software and tools for your business, such as accounting software, inventory management systems, etc.
• Accept online payments. Set up digital payment systems such as cards, bKash, Nagad, Rocket, etc.
• Learn digital marketing or delegate it to others. It would be great if you have some knowledge of digital marketing and SEO and can apply it. Use digital marketing and e-commerce platforms to increase your business reach.
• Stay regularly updated on the technologies. Think about new business trends and try to implement them.

7. The Challenge of Ensuring Customer Satisfaction

Customer satisfaction is the key to the success of a small business. However, there are times when maintaining product or service quality, delivering on time, etc., can fall short. Remember, even if you handle all the other aspects well, your business won't succeed without customer satisfaction! If a customer returns repeatedly for your services, that will be the greatest success for your business.

Possible Solutions:

• Understand your customers' expectations and try to meet them. For many customers, price may not matter; they just want good service. On the other hand, some may prioritize lower prices above all else!
• Take customer feedback seriously and use it to make improvements and bring about changes.
• Maintain the quality of your products or services and continuously work on improving them.

8. The Complexity of Taxes and Government Regulations

Legal matters can often become complex for small businesses. Lack of proper knowledge about licenses, permits, tax returns, etc., can lead to issues. It is essential to follow the correct tax system and adhere to the regulations for your business.

Possible Solutions:

• Learn about the relevant legal processes before starting your business.
• Seek the help of a lawyer or consultant.
• Stay aware of regular legal updates. Ensure proper compliance with tax filing and legal requirements.

Tips for Overcoming Major Challenges in Small Business:

1. Create a proper plan:

The key to success in any business is a proper plan. Have a clear understanding of your business goals, target audience, market trends, and so on.

2. Don't rush, move forward with patience.

Success in small businesses doesn’t come overnight. Work with patience and perseverance. Take every challenge as an opportunity to learn.

3. Expand your business networking.

Network with other business owners, customers, and industry experts. This will provide your business with new opportunities and direction.

4. Provide maximum value to your customers.

Customers are the main driving force of your business. By understanding their needs and expectations and providing service accordingly, they will remain loyal to your business.

Regularly evaluate your business.

Regularly evaluate the progress or decline of your business. Identify areas that need improvement and take necessary steps accordingly.

Overcoming the big challenges of small businesses is never easy, but it is not impossible either. With the right planning, patience, and perseverance, you can conquer these challenges. Remember, every large business once started as a small one. Stay committed to your goals. Wishing you success in your business journey!

Demo - View this & start your journey with HishabPati in three simple steps!

• Step 1: Sign up on HishabPati 

First, visit the HishabPati website and create an account for your business. Alternatively, download hisabpati app from google play store and register. Registration in HishabPati is quite easy & complete free.

• Step 2: Set up your company 

After signing up, first set up your business profile by providing the necessary information as the owner. Then, set up essential business aspects such as inventory, units, purchases and sales, outstanding balances, invoices, and transactions. After that, start updating daily transactions.

• Step 3: Enjoy the various features of HishabPati 

After starting to keep business accounts on HishabPati, make use of the necessary and unique features, such as invoicing, barcode scanning, units, and expense management, among others. 

Watch a demo video on YouTube in Bengali to understand the usage and features of HishabPati in detail. 

Digital ledger for income and expenses – HishabPati demo.

HishabPati's subscription fee starts at just 99 Taka!

HishabPati is Bangladesh's easiest and most affordable accounting app. Its subscription fee is divided into monthly and annual terms, with three budget-friendly packages available.

• 01. Basic Package: The Basic package is completely free! This means you can try out the app without purchasing a subscription.
• 02. Premium Package: The monthly subscription fee for the premium package is just BDT.99. And there's a 17% discount on annual subscriptions! It will cost only 999 taka in a year!
• 03. Business Package: The monthly subscription fee for the Business package is just 199 Taka. Like the Premium package, the annual subscription also comes with a 17% discount, making the yearly cost only 1990 Taka.

Know about all features of packages today in details & choose your desired package. Good luck with your business!