Running a small business can be extremely stressful as there is so much to deal with. In a normal job you simply have to worry about yourself and possibly the people you are directly working with. As a business owner you have to worry that marketing is doing a good enough job to feed leads to sales which needs to assign clients to the right client manager. There is simply so much to worry about but there are some issues that if not solved can cripple business. This could be from a lawsuit or a lack of planning when a large client leaves. The following are things that can cripple your business if you do not prepare and react in the appropriate way.
Employee turnover can kill productivity as well as cash flow. It usually takes a person a few weeks to become profitable if they are even a good fit to begin with. When having a problem with employee turnover it is important that you review your interview process. It could just be an issue of going with a gut feeling instead of experience on a resume. Perks can help reduce this as well such as allowing staff to work at home one or two days per week especially if they are valued.
An employee being hurt on the job can kill profits that will end up going to a law firm. Getting the correct insurance for employees is important but if you do end up in court you need to do a few things. Document your safety training, enlist any lawyers or even a legal nurse consultant, and all drug tests having to do with the employee. An employee that is hurt while they are under the influence of any substance can usually be thrown out by a judge nearly immediately. Document everything so you can protect your business as accidents do happen, it shouldn’t cost you your livelihood and others their jobs.
Clients Are Trying To Be Bullies
Small businesses face a strange situation when a large client that possibly accounts for a majority of business starts to be a bully. Threatening to leave your services if you do not lower your already discounted price is a great example. Diversifying your clients is important as you do not want to have to let people go due to a client trying to use their money as influence. Stick to your business principles and squash all attempts of these power moves in the beginning of the relationship. Setting the tone of a business relationship can set you up for a successful business venture with a client.
Refusal To Adapt
The worst thing that a business can do is refuse to adapt with technology as well as the rest of their industry. Most of the time refusal to adapt has to do with a founder or investor having a different vision for the direction of the company. The most important thing that you can do is follow what the statistics say rather than a gut feeling. This doesn’t mean if you see something that will change the industry to suppress this due to stats.