Are Challenges FacedBy Business Owners Too Tough To Handle? 5 Ways We Find Out

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Business owners are at the forefront of whatever ups and downs the businesses go through. No matter the size or type of the business, the problems are more or less the same. There is no ranking as to the order of the challenge a business faces but if proper controls are in place, problems can be avoided and/or curtailed.

  1. Raising revenues

The most fundamental of all challenges for any small to medium sized business is that of raising its company’s revenues. According to studies, any firm housing 11-100 employees are in constant worry of raising its revenues.

The reason could be attributed to the fact that the capital requirements are not fulfilled from the outset. Although, there are no guarantees that high investments always pay off but that at least increases the probability of hitting the bull’s eye.

These businesses are often met with difficulty in negotiating funds from financial intermediaries and hence, the majority of their capital results from equity as opposed to debt. Even if talk about big corporations and businesses, raising revenues still tops the list.

  1. Recruiting and hiring employees in a cost-efficient manner

To qualify in order to be called as a bigger firm, they ought to be composed of a workforce somewhere between 101-499 employees, according to studies. But for them, they have challenges of their own and that is to invest in the human capital who will remain loyal to the company and not jump ships.

To recruit and hire quality workforce is one of the major concern, especially for big business. For a concern which is composed of 50-100 employees, the need to raise revenue and hire quality workforce is equally challenging.

It has also become a problem due to the reason that more and more people are inclining towards entrepreneurship. The mindset; switching from being employed to being self-employed has left a dent and a void for the companies seeking to hire employees.

  1. Propelling profits

Having discussed the issue of generating revenues for the business, logically speaking, this is bound to hamper profits. Look for coursework help online. If you can’t raise desired revenues, how can you expect to save some for your business? Profit = Sales/Revenue – Cost, yea?

 

 

  1. Government regulations

For any business, a healthy regulatory environment is essential in order for it to thrive. Today the uncertainty factor is more than ever in the form of environmental policies, negative energies circulating businesses and financial policies.

We are told that businesses are going green but long before this concern popped up, the businesses were doing fine. Although it is a good sign for a business to go environmentally friendly but in order to succumb to such “pressures” a manufacturing concern may have to rewire its entire infrastructure to account for emissions which the business has been doing for ages by releasing into the air.

No one complained then. Everyone was happy that they are producing ‘x’ product for the public benefit and in turn, have opened employment opportunities for the community. Therefore, different regulation will impact a certain sector differently. Hence, lawmakers should prepare laws keeping in mind how health and fiscal policies will fare for businesses.

  1. Employee healthcare

Healthcare is crucial. Employers are yearning for loyalty in employees and often pack benefits to give them a feel that they and their loved ones are cared for. That is not to say it’s only a gimmick. Good organisations do care and provide free medical care to the employee and his dependents. But at what cost?

We already learned that revenues, profits, skilled staff etc. are already hard to come by and yet if a person falls sick or his dependent is admitted to a hospital, for example, surgery/childbirth and the likes thereof. How is the company supposed to bear such an expense of hundreds of employees?

Stating to and doing effort to provide for employee’s health is one thing but when the push comes to shove, the management of affairs becomes extremely challenging.

 

Above are some of the modern day challenges being faced by business owners but the list is not exhaustive. There can be many others. Feel free to share it in the comments.

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