Career Advice - A Community Blog

Erik Larson writes about the job market, resume improvement, and career advice

Common Issues Businesses Run Into

Written by Erik Larson, Community Blogger | Apr 28, 2017 6:32 PM

The world of business is one of constant challenge. While some issues are unique to specific fields, others are frightfully common. Below are a few common issues with which most businesses will have to deal. 

Dealing with Hiring

One of the first issues encountered by any business is hiring new employees. At first, the hiring process is simple - but as the business grows, learning how to hire the right people with the right skills becomes ever more important. The hiring process will involve learning how to deal with certain governmental hiring requirements, figuring out how to see potential in lower-level employees, and determining what kind of new hires will best help a company to realize its vision. There's much more to the hiring process than finding a warm body to man the front counter. 

Time Management and Delegation

The early days of a business require a great deal of personal effort on the part of the business owner. He or she is not only the person who bears the most liability, but also the person who puts in the majority of the work. As businesses grow, many owners have issues with delegating responsibility. While it is natural to try to hold on to control of an asset as important as a business, it's impossible to allow a business to grow if the owner micromanages every aspect of its operations. Taking the time to learn how to train others to manage the business is a necessary part of growing a business. 

Dealing with Benefits

As a business grows, so too will its offering to employees. To remain competitive, most businesses must offer benefits like health care coverage. Unfortunately, though, offering these benefits carry with them their own problems. While cost might be the most obvious issue, there are also regulatory issues that are just as important. Working with a good attorney is often a necessity to make sure that these issues are resolved without putting the company in breach of the law. 

Cash Flow Problems

Profits are good, but being able to keep your business running with a solid flow of cash is even more important. Learning how to keep the books balanced and keeping one's vendors and employees happy is a necessity, but it's one with which many businesses struggle as they grow. While this is a problem that can generally be solved with the help of a knowledgeable accountant, it is nonetheless an issue that catches many businesses by surprise. Understanding how to turn profits into the fuel that drives a business is a skill that must be learned if a business owner wants to keep his or her doors open.

Encountering Regulations

Running a business requires dealing with a number of local and national government regulations. Dealing with most regulations is tedious but relatively easy - the challenge comes when regulations change or a business decides to enter a new field. A business may encounter new regulations as it moves to a new location, hires new employees, or even starts to offer new products. Understanding how best to follow these regulations is the best way to keep a business out of trouble and to avoid significant fines.

Understanding Growth

The most consistent challenge presented to businesses is how to manage growth. While it is certainly necessary for a business to grow in order for it to penetrate new markets and ensure a constant flow of new clients, unchecked growth can often just as dangerous as its opposite. Figuring out when to push out into new territories and when to play it safe is a skill that comes with experience, but the failure to learn the skill quickly can lead to disaster. Smart growth should always be a priority for businesses of any size. 

These business issues all have one thing in common - they are possible for any business to solve. As each challenge is overcome, business owners can become more confident in their ability to better determine the future of their businesses. While the challenges will always remain, the tools that owners accrue over time will make them far less frightening to deal with.

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