Top challenges for business owners and tips to help overcome them

Economists warn that more than 300,000 businesses might fail in 2024. With corporate insolvencies at their highest level in over ten years, taking action now could help your business survive the tough times ahead. 

In this guide we uncover the main business problems that owners face and offer you some practical advice and business tips. 

Chasing payments 

Late payment is a common business problem, in particular for small businesses in the UK. The impact on cashflow can be serious. It can cause a business to struggle to pay its bills and debts. 

To reduce late payments, include payment terms on invoices and send regular payment reminders to customers. 

Investing in an accounting software such as QuickBooks and Xero can offer businesses many benefits. Software can send automatic payment reminders to customers, saving you valuable time.  

Finding investment and funding 

Accessing investment and funding is another common business challenge, particularly businesses looking to expand and diversify their operations.  

To fund expansion, business owners may require bank loans, investors, or business grants. Understanding and researching the funding landscape is key to identifying the best options for your business. 

Securing these funds requires a solid business plan, clear financial projections, and guarantees. Each fund has specific requirements, making it a lengthy and uncertain process to obtain funding. 

Working with an accountant can help improve your business plan and funding applications.  

Juggling multiple roles 

Business owners may wear multiple hats as the bookkeeper, finance manager, HR manager and customer facing representative. Business owners can be so involved in the day-to-day running of their business they find it hard to see it objectively.  

You should consider where your time is most important to determine what you can delegate. Taking a step back means that business owners can identify the areas of your business that need extra help. 

Taking on too many roles can affect your productivity and effectiveness. Furthermore, you may not have the right skills or be the right person for the job. Considering your strengths will determine which roles you’d like to keep, and which to outsource, or employ an individual to fill. 

For example, asking your accountant to look after your payroll and bookkeeping can be the first step to freeing up your time.  

 

Deteriorating cashflow 

Many businesses, particularly those starting up, will have cashflow concerns at some point. Cashflow issues can lead to: 

• business unable to pay bills  
• stock shortages 
• having to let employees go 
• business failure

Working with an accountant who can help you stay on top of your bookkeeping and advise you on appropriate software that will help. Getting regular management accounts can help you track and monitor financial results and cashflow. 

Balancing work and your personal life 

While your business is one of the most important parts of your life, managing this alongside your personal life can be hard. Setting boundaries at an early stage is important to try to keep business and personal separate. 

Some things to consider are: 

• Switching off from work in the evening and weekends. 
• Turning off notifications, such as Teams and email alerts to ensuring these don’t disturb you at non-working times. 
• Establishing working hours and ensuring you stick to these. 
• Building in time for breaks into your calendar, including lunchtime. 
• Setting yourself a dedicated workspace so you can separate work and home life

Fighting to stay profitable 

For a business, staying profitable can be a constant effort. Factors that feed into profitability include: 

Pricing 

Think about your pricing plan for the long term. Make sure you charge enough to cover your costs and make a profit and at the same time, stay competitive in your market. Completing market research can help ensure your price point is correct. 

Overheads and cost of living 

Look closely at your spending, these costs can reduce your profits. With the rising cost of living, it can be tough to manage higher expenses. Negotiate prices and contracts when reviewed and consider using other suppliers where you can. 

Strategy 

A long-term business plan should look closely at what your business provides and identify the most profitable areas. Using your resources, including time, on the best performing areas makes business sense. It may be that you focus on core activities that give the best results and close others down. 

Declining mental health and wellbeing 

Neglecting yourself can be easy when you’re running a business. Looking after yourself can filter through to your business success and help you avoid burnout. Planning in downtime to relax can help you be more productive at work. 

Regular exercise and mindfulness practices can help to establish good mental health wellbeing. Seeking professional support can also be useful and finding an outlet for your stress can be important. 

Research by NatWest shows that 92% of business leaders have taken steps to reduce their stress in the workplace. Our guide to dealing with mental health challenges offers you more practical tips. 

Managing deadlines 

Keeping on top of upcoming deadlines is essential and can make or break success. With multiple tasks competing for attention, keeping projects on track requires strategic planning and strong time-management skills. 

Setting calendar reminders will help to remind you in sufficient time, as well as good management of those who are responsible for keeping on track. Meeting deadlines ensures you don’t fall foul of penalties and interest. 

We’ve prepared a concise schedule of dates for limited companies, dates for employers and dates for self-employed to help get you started. 

Recruiting and retaining employees 

Employees are one of, if not the most, important assets in a business. Hiring strong individuals, who have the right skills and experience, is crucial. Having good interview techniques will ensure you find the right employee. 

Once hired, holding on to good employees ensures: 

• consistency of service 
• reduces additional recruiting costs 
• minimises extra training requirements

A robust benefits package that offers competitive salaries and growth opportunities can help to retain staff. 

Time management 

A business owner's to-do list is never-ending. Learning key time management tips and habits will be crucial in keeping you on track to attend meetings and meet deadlines. 

Recognising your most productive times can help you to structure your working day to achieve the best results. If you’re most productive between 10am-12pm, dedicate that time to more challenging work that requires your full attention. 

Use apps and techniques to manage your time and workflow in addition to a traditional calendar. Some examples are: 

• Kanban board, which is a visual representation of a to-do list. 
• Trello 
• Microsoft Planner 
• The Eisenhower Matrix 

How we can help 

TaxAssist Accountants Romford works with businesses and business owners every day. Speak to our team today to get more support for your business and for yourself. Call 0800 0523 555 or use our online contact form to arrange a free, face to face meeting. 

 

Date published 13 Sep 2024 | Last updated 19 Sep 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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