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Like anything worthwhile, starting a business can be daunting, and you must endure several challenges and pains to be successful.
This post discusses four startup pains and challenges to prepare you for tomorrow’s troubles. They include:
- Merchant account issues,
- Cashflow hiccups,
- Staff turnover, and
- Slow sales.
While these challenges can be difficult to overcome, you can break even with proper preparation and mindset. Read on to discover more.
4 Startup Pains & Challenges
Merchant account issues
When you’re a new merchant, your priority is to get your business up and running. But as you expand, your accounts matter because they are your business’s lifeblood.You must know everything about high-risk merchant accounts to react if an issue arises.
For example, you might have concerns with fraudulent charges or the inability to access funds from the account. If you don’t know what’s happening, it could cause severe problems for your company.
Another common problem many small businesses face is slower-than-expected sales. Slow-moving goods or services can lead to financial troubles for most firms because it takes time to recover from this problem.
Many small businesses find it hard to increase sales when their customers aren’t spending as much money as they had hoped due to the economy being slow at first. If this happens, it’s best to keep an eye on your expenses and try to cut back where possible while still staying within your budget.
Cash flow problems are also common in small businesses because they don’t have enough cash flow to meet their needs at all times.
For example, if you are a restaurant owner and your business has been going well, your income will be high, but if sales slow down or drop, you might be in trouble.
You can solve this by boosting cash flow in many ways, including:
- Increasing sales and getting customers to buy more
- Using merchant cash advances to bridge funding gaps
- Saving more money instead of spending it on unnecessary things.
You must also plan for routine expenses (that may affect cash flow, e.g.), such as paying an employee’s salary or office rent.
Staff turnover is one of the most common business challenges and can be a huge drain on your productivity, efficiency, and profitability.
The best way to address it is to eliminate its causes. Here are some common issues to solve if you want your company to thrive:
- Unprofessional management
- Lack of trust among team members
- Poor compensation package
- Poor communication between team members
Solving these issues creates an environment where your employees feel comfortable asking questions without feeling like they’re being singled out.
Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high-risk merchant accounts processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived in a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.