BUSINESS Providing Healthcare to Employees: The Affordable Care Act,

                                                BUSINESS INTELLIGENCE

There are plenty challenges to starting a
new small business. Having been there before, I´d say the top of them are as
follows:

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Lack
of Experience:

The person who starts a small business for
the very first time usually doesn´t know how to manage the multiple tasks the
businesses bring with them. Trial and error is the most common (and painful!)
way to overcome it.

Lack
of Costumers/Market:

This is a very common (and painful)
mistake made by newly founded small businesses. People invest cash and time to
open shop, only to find that not that many people are interested. This is very
serious stuff, because it could bankrupt you in a matter of months. To avoid
this, conduct market studies before spending a time on anything else! A market
study need isn’t being expensive, just smart. Look around for unfulfilled
needs, figure out how many people share this need, see if anyone else is
already trying to fulfill it, see what they are doing and you´ll have a clearer
idea of what the market potential is.

Hiring
New Employees:

Hiring new employees is a challenge many small businesses are
having to deal with. Part of the difficulty relates to employee healthcare which
we’ll discuss in greater detail in a moment but it also must do with the
substantial costs of bringing new employees on board. According to one
estimate, the total cost of onboarding taxes, benefits, equipment, training,
bonuses, etc.

 

 

Increasing Profits:

For small businesses with perhaps five to ten
employees, increasing profits is the biggest challenge. investment for
companies

There are any number of reasons,
but usually it comes down to an inability to remain a low-cost leader against
the competition (who may have access to better resources and economies of
scale). The only answer is to innovate and optimize constantly and stay one
step ahead of your competitors.

Providing Healthcare to Employees:

The Affordable Care Act, popularly known as
Obamacare, created sweeping changes in the employer-sponsored health insurance
market. It was shrewdly promoted as a way to lessen employer issues, for many
firms it posed a greater obstacle to small business growth.

Employers are expected to pass increased
healthcare costs on to employees, which causes extra friction in the workplace.
And if managers choose not to pass on the costs, they may dramatically reduce
their own profits.

While Obamacare has been successful
at extending healthcare to many Americans who
didn’t have it before, some small business owners have caught much of the brunt
of its downside.

 

Growing Revenues:

Part of the difficulty with increasing profits
is that many firms have found it hard to increase their revenues. The issue
can’t necessarily be explained by a single root cause, because revenue issues
are generally specific to the business itself.

 

 

Managing Cash Flow:

Money problems in their various forms are top
of most lists of company woes, and for small businesses the major worries are
clients stalling payments, unexpected outgoings, and outstanding bills that
won’t wait to be paid.”

The good news is that cash flow issues are
largely curable. Product demand and healthcare regulations are far more
resistant to control from inside your office walls, but cash flow can be dealt with.
There are plenty of recent solutions designed to achieve better budgeting and
invoicing. The key is finding one that fits your business.

Staying Energized:

While it may not get as much publicity as
fiscal challenges, staying energized and overcoming fatigue are also big
problem areas for small business owners. “When the fatigue sets in, the
weariness with the hours and the results can lead to decisions about the
business, including the desire to abandon it completely, finding a pace rash that
keeps the business humming without grinding down the owner is a challenge that
comes early (and often) in the evolution of a small business.”

Avoiding Client Dependence:

Especially the ones that have fewer
than 10 employee’s client dependence is a huge issue. If a business depends on
a single customer for more than half its income, that should raise a huge red
flag. If that’s the case, the business is totally reliant on the client to stay
operational and profitable. Diversifying your client base needs to be a
priority if growth and stability are also goals of the position. That’s
a significant investment for companies that are typically strapped for
cash. 

 

 

Increasing
Profits:

For small businesses with perhaps five to
ten employees, increasing profits is the biggest challenge. There are any
number of reasons, but usually it comes down to an inability to remain a
low-cost leader against the competition (who may have access to better
resources and economies of scale). The only answer is to innovate and optimize
constantly and stay one step ahead of your competitors.

 

 

 

Growing
Revenues:

Part of the difficulty with increasing
profits is that many firms have found it hard to increase their revenues. The
issue can’t necessarily be explained by a single root cause, because revenue
issues are generally specific to the business itself.

As renowned sales expert Jim Keenan says,
increasing sales revenue comes down four strategies strategy, structure,
people, and process.

 

Staying
Energized:

While it may not get as much publicity as
fiscal challenges, staying energized and overcoming fatigue are also big
problem areas for small business owners. “When the fatigue sets in, the
weariness with the hours and the results can lead to rash decisions about the
business, including the desire to abandon it completely, finding a pace that
keeps the business humming without grinding down the owner is a challenge that
comes early (and often) in the evolution of a small business.”

 

Avoiding
Client Dependence

For many small businesses especially, the
ones that have fewer than 10 employee’s client dependence is a huge issue. If a
business depends on a single customer for more than half its income, that
should raise a huge red flag. If that’s the case, the business is totally
reliant on the client to stay operational and profitable. Diversifying your
client base needs to be a priority if growth and stability are also goals.