You may be starting a new business or looking to expand. You may be a sole proprietor or the CEO of a large corporation.
All businesses, no matter what size they are, face challenges. You often hear a business owner say that employees represent the company's biggest asset.
While that may be true, other elements are essential to the well-being of any company or organization. An experienced attorney can help with the legal matters that surface, so that your business stays on track for success. Here are six of the most important challenges your business must face.
1. Revenue Growth
The top priority of companies that employ from 11 to 100 people is the task of growing revenue. Small companies often need an influx of money from lending institutions, but may find funds difficult to acquire. Many medium-sized companies, those with 101 to 499 employees, also find that revenue growth is a challenge.
Medium-sized companies cite hiring as a critical effort. Everyone wants top talent, for one thing, and the options may be confined to a small area. Another obstacle is that the most talented people may decide to start businesses of their own.
Small businesses, however, often operate with a family mentality, and in this kind of environment, hiring does not seem to be as much of a problem.
Government regulations become a challenge for companies who have 51 to 100 employees and more. A Gallup poll from 2014 pointed out how onerous regulations can be for businesses who must meet regulatory compliance.
4. Cash Flow and Profits
Small companies, those with 50 employees or less, find it more difficult than larger companies do to maintain sufficient cash flow and increase profits. As companies grow, these efforts seem to become easier, so larger businesses can turn their energies to other concerns.
5. Risks and Problem Solving
All businesses must identify risks and mitigate them. The advice given by top managers is to put good problem-solving capabilities in place at every company level. The risks apply not only to the financial side of the business but also to the company's human resources.
6. Maintaining Integrity
Moral challenges exist everywhere in business today. Corporations are always in a fever to make their quarterly earnings estimates, and small businesses do everything they can to compete in the marketplace. Competition is everything, and the atmosphere can be cut throat. Maintaining integrity is essential if a company is to retain the trust of its employees, shareholders and customers.