The ten typical small business problems are defined as either current or long-term challenges facing a business. These problems are often counterproductive in terms of goal achievement. In some cases, these challenges can threaten the survival of a company. As a leader, you may have or will have to face some of these challenges.
Ten typical small business problems:
- Financial
With today’s inflationary climate and supply chain issues, there are many financial concerns in those areas. The inability to refinance debt stemming from tight credit conditions could be another example. - Business Models
There are many new ways to do things. Different paths can take you to the same destination. The problem is that you can get stuck in the old-school methods and miss out on the advantages that the new ways bring. - Reputation
Do you have a 5-star reputation that you’ve earned from years of excellent service? Or do you struggle to get even 2-star reviews? About 85% of consumers trust online reviews about businesses as much as personal recommendations. Your customers take reviews to heart. - Values
Does your firm align itself with the changing values of society? The focus of our times is to help protect the environment and embrace the concept of global warming. Does your organization have operational processes that harm the environment? - Demand
Changing World conditions can significantly affect customers’ needs, perceptions, and preferences that impact your products and services. Example: A cultural movement toward healthy foods can impact brands that produce junk food. - Supply
We see supply chain issues that significantly affect businesses in our current economy. It has required some “plan b” thinking to keep products and services moving. Is your organization prepared with a “plan b”? - Products
A new product that doesn’t take off with consumers as expected. - Sales
The inability to hire the right sales professionals who have the connections in your industry. Up and down sales performance from existing Salespeople. - Employee Performance
We’ve entered a period of hybrid working conditions. How will you gauge and monitor employees who are not on-site? - Information Security
Cyber-attacks, ransomware, and other security threats can be devastating if you aren’t prepared. Check out our blog post on cyber-threats.
How do you start to tackle the issue if you experience any of these or other small business problems? Begin by identifying and describing the challenge by creating a problem statement.
How do you describe a problem? Create a problem statement.
“Problem statement” is a description of a problem to be solved. For example, the problem statement simply describes the impact of a particular situation.
A problem statement can have multiple uses. The first is to identify and straightforwardly explain the problem giving the organization a concise view of what is going on. Who does the problem impact, what they are and what exactly needs to be fixed. The other purpose of the problem statement is to clarify the expected outcomes. Identify what the desired situation would be.
Here are seven key elements to consider when drafting a statement.
1. Describe how things should work.
2. Explain the problem and state why it matters.
3. Explain your problem’s financial costs.
4. Back up your claims.
5. Propose a solution.
6. Explain the benefits of your proposed solution(s).
7. Conclude by summarizing the problem and solution.
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