The Biggest Challenges Facing Small Business – (and Solutions!)

By Carol Roth |

September 28, 2011

Right now, we need small businesses to boost the sagging economy. But it's tough going for small businesses. To see where small business owners are facing challenges, I have called on the CarolRoth.com contributor network of entrepreneurs and experts to provide what they believe are the biggest challenges that small businesses need to overcome right now and some suggested solutions. Their answers are presented below in no particular order so that you can help stack the odds of success in your favor. You may notice some similar insights, but I kept the concepts separate, as something in the way one is framed may resonate differently with you.

1. Can't Pay the Money???

The biggest problem is see for small business today is in hiring employees that can truly help your business grow. It's difficult to compete with the larger businesses for the same talent when you have such limited funds. Solution? Help them to think as a partner would. Give them a sense of 'wanting' to build and grow with you. Find more creative ways to tap into the talents you need. Research what employees want! You can't compete with money and that's a challenge no matter how you slice it.

Thanks to: Kellie Auld of Simply Communicating.

2. Getting and Keeping Customers

I have been working with small businesses for two decades and the biggest problem they face is getting and keeping customers or clients. It's "feast or famine" daily, weekly and monthly. The only answer to this constant challenge is to create a system for getting and keeping customers for life. The solution? It's all about building a network that sustains the constant ebbs and flows of business.

Thanks to: Melissa Giovagnoli-Wilson of Networlding.

3. What Money?

Even with all of the economic programs and incentives for small businesses, most don't qualify. It's difficult, especially for smaller businesses, to build up credit and provide financials worthy of securing business loans and lines of credit needed to grow. Make sure you're aware of all of the financing options, the pros/cons of each and how to qualify. Also consider, with your accountant, how you keep your books: is it to minimize tax liability or make your income more attractive to lenders?

Thanks to: Stacy Robin of The Degania Group.

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69. CEO Sees the Customer First

The biggest challenge facing small businesses today is making customers happy. There are so many options for consumers to choose from now that businesses are forced to not only meet, but exceed their customers' expectations.

Thanks to: Tony Ellison of Shoplet.