All companies have the same problems: lack of leadership, cash flow, employees, and marketing. The level of challenge depends on the market, the location of the business, the size of the business and the required level of skill of the employee.
Leadership is a critical issue. Companies are generally managed by managers and not by leaders. Companies without leadership eventually wither and die due to lack of vision for the future.
The four main challenges are:
Successful leaders are visionaries. They see the big picture and are generally not afraid to make a decision based on instinct and facts.
A leader inspires others with consistent actions. His actions match his words.
A leader sets the focus and goals and continually checks that everyone understands.
A leader speaks the language of the employees. Communication takes place in a context that everyone understands.
A leader is attuned to the challenges employees face and provides guidance and solutions to reduce frustrations.
How does a small business owner learn to be a leader? Most learn through trial and error. Others may be fortunate enough to have a mentor who can help them reduce their learning curve. There are very few institutions that teach leadership. I suspect it is because leadership is a mindset and requires experience to perfect yourself. The best opportunity for a small business owner is to join a group of business owners, find a mentor who is truly a leader, and learn from that individual.
This presents a real dilemma for small business owners, as you can no longer depend on your trusted source of cash. There are other sources of loans, but generally at a much higher cost to the borrower. The result is higher costs and less profit.
c The Internet gives a business the ability to focus on its specific market. Internet marketing can be tailored to locations, age groups, interests, etc. If the business owner does not know how to do this type of marketing, they will have to learn on their own, exchange or outsource the service. Small local businesses have a better chance of barter for services than one that is not involved in the local business community.
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