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Thread: Small business biggest challenge

  1. #11
    Bronze Member Miro Bagrov's Avatar
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    I think one of the major challeneges to small businesses is a lack of access to support and management advice.

    Everyone would rather hire a cheap worker or two, and try to deal with all the issues mentioned above (capital, expense control etc.) by themselves.
    Business owners are afraid to involve anyone else in management because they think someone will steal their business ideas (or other reasons only they know).

    Businesses get stuck in being small because they spend 100% all their effort in operations and 0% on growth. That's why small stays small.
    Last edited by Miro Bagrov; 29-Oct-13 at 09:58 PM.

  2. #12
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    I agree, and guilty of exactly that.

    I don't agree, with people trying to steal business ideas, I have an electrical business there is no idea to steal, it is simply I do electrical work.

    I have pointed this out on many occasions, it is more about letting go and trusting other people to do the job as I would do it.

    I know, I have a saying in my business "if you want something done right do it yourself" this sentence is one of the biggest restriction in most small business growth.

    You have to let go and trust that other people will do what they are paid to do, this is where a good supervisor, manager comes in, but if you are too busy "running the business" who will manage the staff and make sure things are done right?

    What I see in many a small business is a person who has qualified as an artisan or something and feels he can make a go at it in business. The mistake is becoming a good electrician or plumber or even accountant for that matter doesn't make you a good businessman.


    The day you decide to start a business there are certain rules

    Rule no.1...make sure you are a good businessman.

    there are a lot more, if you google them, there are studies and thick books which could take you a life time to read, yet the fail rate of business is a lot higher than the success rate by a huge margin, maybe too many people writing books and studies and too little putting them to practise.

    Which brings me to another point, how many people can tell me how to run your business, I am sure many of you can relate to this especially the ones who have never actually had their own business, but they can tell you how to run your business and what you are doing wrong

  3. #13
    Moderator IanF's Avatar
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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Along these lines, a number of companies (big and small) take settlement discount as a matter of course and whether or not it is your payment terms. Heck, some even take it when they pay late!

    I'm interested to know who else experiences this, and do you allow it.



    I have a friend who frequently has to tell a prospective client that "we have just reached my 'f#$k off' price!"
    The trick is not to offer terms. When I get the call saying if I pay now can I take discount I say no rather pay later, then then pay 10 days later with no discount. The price for them is looked at to see if it is still worth while. I love the F$%#k off price that is reached quite often dealing with Bridezilla's and changing artwork.
    Only stress when you can change the outcome!

  4. #14
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    Bridezilla - Yeah, I can vouch for those...I am yet to come across a more wasteful painful breed.

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    Diamond Member Justloadit's Avatar
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    I sometimes tell my potential customers, that I can not afford to do your job, but thank you for asking.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  6. #16
    Site Caretaker Dave A's Avatar
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    Every business has different challenges when it comes to getting timeous payment. Ultimately it's a case of identifying where and why you are being taken for a ride, and then put measures in place that control and reduce the risk.

    And then stick to them!
    Which at times can be tougher than you might think. But it is critical.

  7. #17
    Diamond Member tec0's Avatar
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    I am going to go

    In my opinion a business of any size have 3 major drawbacks.

    I would like to start with the suppliers. Now I only know the “tech” industry and based on that I can say that you cannot be competitive because the supplier base is limited and there requirements are beyond belief.

    After all how do they expect you to stay
    • Competitive
    • Profitable

    In a saturated market?

    How can you comply with supplier requirements if you can’t get competitive pricing?

    Thirdly is the endless TAX battle and I believe that must actually become a subject in its own right because it seems like extortion!

    Then there is a question of stock insurance and transport insurance and life insurance that seems to be the norm. Basically your business starts with a massive overhead that is seemingly impossible to do without.

    Take in account how much your business cost you a month? For most small businesses “depending on how small” this is still a large amount. Rent can set you back about R15k a month “as an example” or R1500 a day depending on location. And FACT IS business is 60% about location.

    Now you need insurance, security, training and cash points. ALL of this cost money.

    So the biggest challenge is “cost effectiveness

    If you business is not cost effective its game over.
    Last edited by tec0; 01-Nov-13 at 07:30 AM.
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  8. #18
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    tec0 - it all comes down to being shrewd, SPAR survives next to Pick n Pay and the Café on the corner survives next to SPAR. There are ways to deal with tax and business is not always about location.

  9. #19
    Diamond Member tec0's Avatar
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    There are 3 computer shops in our immediate aria about 15min away from where I live. Two are located in close proximity to each other “walking distance” one is doing very good the other very bad.

    Both have competitive pricing, goods are of the same quality “same supplier” and they carry more or less the same stock. The one is making it but the other is losing it. Why? Simple answer the one is located inside our local Shop the other is located closely to a less popular shop. So as a matter of convenience the one shop is factually doing better.

    Now the third shop is out of the way and closely situated to the mall now its biggest competition is the local franchise shop “incredible connection” Truth is our “incredible connection store” is very competitive. So that computer shop is suffering. There stock is about six months old! There sales are so bad that the owner let go of all his staff.

    I read what you are saying but it is what I am seeing that that is the decisive factor.
    peace is a state of mind
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  10. #20
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by tec0 View Post
    After all how do they expect you to stay
    • Competitive
    • Profitable

    In a saturated market?
    Establishing a viable business model is the shop owners responsibility, not the suppliers.
    The interest of the supplier is to get its product to market and get paid by their customers (in this case those shops).

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