10 challenges a small business owner will face

As an entrepreneur, when can you consider the work of building your company complete? Maybe when the sale of your business closes, leaving you wealthy and content. In the meantime, you will encounter obstacles every day—truthfully, most entrepreneurs would have it no other way. Here are the 10 biggest challenges a small business owner will face:

1. Undervaluing your product

To grow market share and build a business for the long haul, you have to attract consumers who have no reason to trust you. New companies have to undervalue their products and services in order pull off this feat. In other words, you have to sacrifice revenue and play the long game to allow your business to succeed. This tactic requires patience and a large dose of humility, but the reward is more market share than you would otherwise take.

2.Drafting an all-star team

As soon as you become too busy to be the one-person band, you need to build a winning team. Treat every hire you make with extreme care, thinking about the future of your firm, rather than your immediate administrative needs. Paying more than you can afford for an all-star employee could be the best investment you ever make. As with sacrificing revenue for growth, a brilliant employee may be worth the money.

3. Maintaining a life/work balance

A small business owner is usually ready to commit 24-7 to a new venture, but your company is better off when you take breaks. Keep the human (i.e., personal) aspects of your life in a healthy place so you can stay grounded. Having a sound perspective will help your business decisions and make your company stronger. Resist the urge to surrender your entire self to the business.

4.Handing over responsibility

At some point in a company's development, you will have to relinquish control to employees. Learn to identify the strengths and weaknesses of your staff so this challenge gets easier. If you cannot trust anyone in your company to take over leadership roles, rethink your hiring practices.

5. Learning new technology

Entrepreneurs should never stop learning new things, and in today's business world, the main challenges involve technology. Embrace tools that will make your company stronger. You never have to master each new app and program, but get a working knowledge of the tech to use to your advantage. If technology is a weakness, hire team members to compensate or outsource the work to qualified partners.

6. Avoiding employee turnover

Making the effort to find the best employees is the first part. The second part is keeping them happy and loyal to your company. You will succeed by making employees feel valued, compensated, and engaged every day at the office. Businesses often hinge on your ability to meet this challenge.

7. Keeping your passion as a small business owner

Keeping yourself engaged and passionate about a business gets harder as the years pass. If you feel like it is Groundhog Day when you enter the office in the morning, then you know the time has come to recharge your batteries. Tap into the original spirit you had when you founded the company or risk the defection of key staff members. Much like passion, lethargy is contagious.

8. Handling the legal angles

You may be the visionary of your company, but the realities of doing business make you the accountant and legal adviser as well. Take time to manage the legal angles, from protecting products with patents to knowing tax write-offs and insurance liabilities. You cannot afford for your company to get blindsided by a technicality.

9. Adapting to industry shifts

Businesses that launch in 2001 and 2021 have an equal number of industry shifts to face. Entrepreneurs should never consider the issue settled when it comes to steering your company through marketplace changes. Even when it becomes draining to constantly adapt, lean on your team to keep your company relevant.

10. Accepting business as a never-ending investment

Small business owners may be tempted to believe they can sit back and count their profits at various points in a company's life, but that day never arrives. Successful businesses forever require investments in new employees, infrastructure, expansion, and marketing.

Creating a small business brand: What is in a name?

You might think naming a company is the easy part of launching a business. . To get the branding aspect of your company right, consider your company name a crucial part of your business plan. Here is some advice to help you navigate the process:

Creating a memorable and appropriate name

Your goal is to create a company name that sticks out in the minds of consumers, while still prompting associations with your overall mission. Google is an especially brilliant name because the 100 zeros comprising a "googol" conjure up the limitlessness of the Internet. (Back when Google was founded, the Internet was light-years away from being infinite, so that choice was prophetic as well.)

When you brainstorm, consider how your business's name will look on paper, as part of a logo, and on different websites. Does it appear as nicely as it rolls off the tongue? Engage in free association to get a sense of what the name suggests—for better or for worse—so you know what people will think of when they hear it.

Differentiating your brand

As with your business itself, differentiating your company from the competition is essential when finding a name. Think how the name will sound when used in a sentence with competitors' names. If your name is the most attractive of the bunch, then you are off to a good start.

Words with one or two syllables work better because they are easy to remember and could potentially become the start of a phrase once your business model expands. Think of how easy it was for Google to add Google Mail, Google Docs, and Google Maps to its roster of products. That short, memorable name lent itself to expansion without the slightest hitch.

Targeting your market

Entrepreneurs sometimes find it difficult to step back and view their concepts impartially. This is natural; after all, your passion and focus are the reasons you have brought an idea to the marketplace. But remember: You are the creator of the brand, not its target audience. To reach the consumers you need to succeed, you have to think about your brand from their perspectives.

Think about the ages, income brackets, habits, wants, and needs of those you will target with your product. Your target audience hopes for something—is your company name giving it to them?

Protecting your brand

Once you wade through the process of naming a company, remember there are numerous practical concerns, starting with your URL. Run searches to determine whether your company name is available should you slap a ".com" at the end. Though a nice web address helps, it is not essential. For example: ESPN.com is not the web address of the sports and entertainment giant. The company has chosen ESPN.go.com because its original choice was taken; despite this, the URL seems to have worked well.

With a solid company name and your URL ready to go, it is time to consider trademark protection. Although anyone can place a trademark symbol on a motto, name, or phrase, you need a registered trademark to ensure legal protection. Trademarks are not expensive and take just a few months to obtain, so the investment is well worth it when you pick a winner. While you are at it, you may want a patent for your unique product.

What is in a brand name? For Google, it was everything. For Apple and IBM, it took years of building associations through branding to become the giants they are today. For small business owners who do not have massive marketing budgets, it pays to get it right the first time.

How to find a mentor through networking

As a small business owner, you are an entrepreneur in your own right. Many entrepreneurs have mentors—in other words, experienced people with similar values and goals—who are invested in their success. However, given the pressures of modern business life, it can be a challenge to find mentor candidates willing to spend time cultivating you, unless doing so contributes to their company's bottom line. Since it is unlikely mentors will come to you, how can you get out there to find one?

The answer is simple: networking. Here is a closer look at mentorship, and the ways you can find a mentor (or mentors) who will help you along your road to success:

Mentorship

Successful mentorship can help you set bigger goals, and even start to think bigger as your confidence in your own leadership improves.As you reach out to established business people, consider these qualities: They should be frank when sharing advice, and they should be people whose constructive criticism you will invite and accept. Be clear in your mind about what kind of help you seek, and why you would respect a particular person's advice.
A mentor does not have to be someone who will serve as the ultimate role model and answer all your questions—you have to branch out and develop a core team of mentors with the traits you admire and want to learn from. This will be your "mentor board of directors," composed of people who excel at, or have profound knowledge of, a particular niche crucial to your company's growth. In short, benefit from the wisdom of individuals with varied skills.

Networking

Networking is about forming meaningful, invaluable connections with like-minded people. That is why a team of your peers may give you the best advice.

Online connections

Online forums allow you to seek mentorship from people you do not know personally, but whose experience and perspectives you admire. The key is to engage these people in discussions prior to asking them to be your mentor to prove you are worthy of their time, and vice versa. Social networks such as LinkedIn can be invaluable here.

Some colleges and universities offer online courses that can help strengthen your skills, while also introducing you to people with different kinds of business expertise. You will find a host of potential mentors in this pool of professors, instructors, and fellow classmates; afterward, you may be able to approach them in person and see if they can fit your purpose.

In-person networking events

These offer the best opportunity for you to impress—be ready to stand out from the crowd.

Industry-specific networking events. Conferences, seminars, and workshops are usually teeming with experts who are experienced in their fields, making these events ripe grounds for your mentor search. Exchange business cards and arrange to get coffee or a drink later, during which you can broach the subject of mentorship, gauge your overall compatibility, and above all, get a sense of their interest in mentoring you.

Volunteer. Your chances of pitching to potential mentors increase when you put in the time to volunteer for a nonprofit organization, or offer assistance in setting up or organizing an industry event. Your commitment makes an impression on potential mentors.

Be proactive and take the lead. Instead of just joining business associations as a member or attending conferences, assume a leadership role, perhaps as a committee chair or panel moderator. The movers and shakers in your industry will notice and may be more inclined to become your mentors.

Mentoring organizations

Approach entities that can connect you with potential mentors. One example is the SCORE program, which can link you up with a network of business executives. SCORE has tens of thousands of volunteer mentors spread over 60 industries that you can communicate with by phone or e-mail.

Running a business is demanding, and new challenges may leave you feeling like you are in it alone. Like any other entrepreneur, you should have like-minded friends to avoid the trap of the "me against the world" mind-set. Start networking to identify candidates who are willing to take you under their wings. This business mentor—or your mentor board of directors—will act as your role model, someone who inspires, encourages, and advises you. With time, you will become a mentor to other business owners just starting to learn the ropes, and it will be an ongoing fulfilling experience.