Common and obvious problems faced by small business owners.

[CALVINDOL]

Sometimes when individual reside in a country where unemployment is high in rate some of these individuals turn to the establishment of small-scale businesses so as to fend and Carter for their needs and wants and even that of their family members and relatives . For example in Nigeria, there is absolutely no major road, local Street, feeder road that you can possibly come across that you won't see a small-scale business because they are scattered almost everywhere . Small scale businesses enjoys a whole lot of benefits, merits, and advantage but yet we cannot regulate the whole lot of disadvantage and demerits faced by small scale business owners . One of the common problems faced by small business owners is the problem of insufficient funds to expand the business . Small scale businesses find it very hard to expand their business , and that is because most members of the public usually neglect this set of businesses but rather go to patronize large-scale ones .

Another problem faced by small scale business owner, is literally the problem of encountering too many competitors and business rivals . In a country like Nigeria were almost everywhere is filled with small-scale businesses. Small scale business owners are more likely to encounter similar small-scale business owners carrying out similar business activities and practices possibly in the same street or in the same environment which bring in some sort of competitive atmosphere.

 

[TOZZIBLINKZ]

You do not need to be told that small-scale business is totally first a whole lot of problems and disadvantage that is why in order to avoid this problems and hindrance that comes with establishing a small-scale business majority of individual have possibly throw away the intention of establishing a business or possibly save up the money until when they can establish a large-scale business . Present individuals and business owners who own and control small scale business organisations are definitely facing the problem of environmental test by miscreants, hoodlums, and arm robbers . They usually patrol their services at night and their main targets as small-scale businesses .

Another common problem faced by small scale business organisations is literally the problem of lack of financial funds . Small scale businesses they definitely have the intention of expanding their properties and tiers but in order to do so they need sufficient capital which they are unlikely to get due to how medium there are established .

 

[King bell]

Some of the common mistakes made by small business owners and people who have never ran a business before has been to consider themselves financially secure. They believe that their business is worth selling if the going gets tough, or if they find something else in life that is more important. Unfortunately, this mindset leads to a common and obvious problem faced by small business owners--leaving money on the table for a bigger opportunity.

Beginners often consider the start-up expense as a sunk cost. They don't factor the initial investment as an asset to be leveraged. Instead, they see it as an opportunity cost or a loss. If they run into financial difficulties, they tend to liquidate their business assets and investments instead of finding ways to solve the problem by making adjustments in cash flow, financing, inventory management or capitalizing on new opportunities presented by the market.

Another common and obvious problem is when entrepreneurs fail to establish their objectives in advance. They usually set up their business without a clear strategy. This can be detrimental especially if the company is in its early stages because it prevents you from identifying your prospects and knowing your ideal customer profile.