What Are the Biggest Problems Small Businesses Are Dealing With?

The study from the National Federation of the Independent Business Research Foundation, sponsored by Wells Fargo, recently researched the issues that small business owners consider to be the most problematic in their work. No wonder, on the top is the problem with health insurance, but liability insurance as well. In second place are the business costs and difficulties with small business financing, with emphasis on the tax cluster and worker’s compensation.

Difficulties such as incompetent employees, problems with customers and suppliers and inability to organize their time between job and family are also regarded as important, but with much lower ranks, according to this survey. Even though most of the small business owners don’t have time nor interest to deal with some political issues, many of them believe that politics does have an impact on their business and can be a source of their problems.

Many small businesses’ worries are connected with the cost cluster, among them, the most difficult to control are health insurance costs, energy costs and inflation. Other cost problems are connected with the costs of fuels and electricity, supplies, inventories and worker’s compensation insurance. An American economy used to provide a good, stable foundation for small business owners, but lately it had a negative turn, resulting with small businesses struggling to search for innovative ways to reduce expenses and increase sales.

Speaking of problems with taxes, we are talking about federal taxes on business income, property tax (real, inventory or personal property), tax complexity or state taxes on business income. Obviously, most of the high ranked problems small business owners deal with are connected, this way or another, with some general issues or a state. The only way to deal with those difficulties is to be well informed and to have a good strategy. Never underestimate the importance of a good small business plan.

Still, there are some concerns more locally oriented, which are connected with the organization within the company itself. There are, of course financial problems, which could be solved by careful and professional managing and a special emergency bank account with some money saved on regular basis but used only in tough months.

The survey also showed that some of the everyday headaches a small business owners may have, come from their near surrounding. For example, incompetent employees which can give company a very bad look. In comparison to large companies, small businesses have a high employee turnover, and reliable and trustworthy employees are a great challenge.

Maybe the most serious problem of this kind is a relation with suppliers. Most of the businesses are sort of net or chain of services and goods, and a flue of the money, so one business works as good as is the functioning of business deal with suppliers or other company you cooperate with.