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What are the 5 Problems Businesses Face?

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What Keeps You Up At Night?

This is a great question to ask business owners because it gets right to the heart of the issue. A beginning of a new year brings new challenges. We all want this to be the best year we have ever had, so we should ask ourselves the right questions.

What can I do to add the most value in the least amount of time to my clients/customers/employees etc.?  

If you are in the midst a problem, you might ask “What can I do to prevent this problem from happening again?”

Last week was a challenging week for me as it seemed like everyone needed something as soon as possible. There were some issues that popped up that needed to be addressed. I keep asking myself the above questions.

Sometimes the answers to questions we have can lead us to answers that we don’t want to think about. Maybe we don’t have enough resources such as money, time, or people. Or it is possible that we are stressed, which can lead to health problems. Also, we could need more revenue. One thing I know about revenue is that it cures all ills. Revenue has a way of solving many problems. More revenue leads to more resources, new processes, more cash, and many times, more stress – at least temporarily.

Here are 5 of the top problems that tend to keep business owners up at night:

1. Revenue / Sales

I am working on a webinar called “It All Starts With Revenue”.  It is based on a blog post I wrote a few months ago that gained some interest. We have to put together a revenue plan to build a forecast of the organization. The revenue plan allows us to understand the potential, which is exciting. Revenue helps us plan our expenses and cash flow.

2. Distractions and Time

We have a way of letting emails, texts, and distractions keep us from focusing on work. A friend of mine mentioned an idea of scheduling a couple days a week to spend 80% of the time on more strategic activities such a planning, business development, or content generation. Do you spend enough time working on your business? Distractions are reactive, so we have to schedule blocks of time to be proactive. Check out some suggestions at “Where are Your Risks: Weapons of Mass Distraction”.

3. People

As we grow, we need resources. People such as vendors, contractors, and employees are key components to the success of any business. When do we hire someone? How much should we pay this employee? Is he/she the right fit? How do I find time to train? Is it faster to just do it myself and not hire anyone? Or maybe you feel you can’t afford to hire anyone. Once again, this goes back to the first point that revenue takes care of many challenges.

4. Cash

It seems like everything in the business world revolves around cash. I have been involved in a few investment deals, and usually issues get cleared up and people’s intentions become very clear when cash starts getting involved. We all need cash to survive in our business, so we should have a cash flow plan.

5. Stress

Have you ever had so much going on that you begin to shut down and you feel like you can’t get anything done? This is a huge risk, and we need to know how to deal with stress positively. Stress has a way of reducing critical thinking due to releasing chemicals that increase the heart rate. Stress consumes the brain’s energy and overworks the amygdala, which keeps us from using our prefrontal cortex. The funny thing is that we need our prefrontal cortex to think strategically. Many times we have to figure out a new process or strategy to overcome an issue. Too much stress prevents us from the critical thinking we need. Check out “Stress and Critical Thinking” for more information.

As we start a new year, we need a plan to tackle revenue, distractions, staffing/personnel, cash, and stress. Don’t let all this keep you up at night because that will, of course, only make things worse. Hire a CPA or fractional CFO to help you manage and grow your organization.

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Do you like what you are reading? Do you desire more financial clarity in your organization? Are you concerned about revenue, cash flow, or how to plan better financially? If so, click the link below to sign up for valuable content to be delivered to your email each Monday morning. I look forward to helping you meet your goals. Also, I will be having a free webinar in February to talk more about revenue so be sure to sign up to learn more about this.

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