It’s not easy to run a small business. Business owners face a diverse range of risks—some business related, but also personal jeopardies such as debt and income loss if things go really wrong.
So what are the highest risks that commonly keep small business owners up at night? An article from Forbes provides some insight; it includes the results from a NFIB (National Federation of Independent Business) “Small Business Problems and Priorities Survey” conducted in 2016.
The top three concerns of small business owners, as derived from this survey, were as follows:
- The cost of healthcare
- Oppressive government regulations
- Federal income tax on businesses
You might notice a theme here. Interestingly, according to this study, nine of the top ten small business challenges are associated with government.
What’s the outlier that’s not government related, you ask? Finding qualified employees.
The cost of hiring new employees
Deciding who to hire is an important process for small business owners, but finding the right people is no easy feat. This is where making bad decisions comes into play.
According to a “Small Business, Big Hire” survey conducted in 2016 by Monster Worldwide, “nine-in-ten small business owners (89 percent) identify hiring the wrong person for a job as a risk to the company, with half (51 percent) saying it is a major risk.” Many issues can arise when an employee is not fit for a particular job, including product use errors or customer service mishaps, all leading to a negative impact on company productivity and reputation.
To make matters worse, when you hire the wrong person, you waste the organization’s time and money. One-third or more of these owners estimate wasting over 50 hours of their time and over $1,000 due to their most recent wrong hire.
The takeaway? You do have some power over who you choose to work with, which has a larger impact on how the business runs than some might think.
And even if you feel powerless against government regulations, there are a variety of support networks specifically designed for small business owners. Here’s a few of them that you should check out:
At Cleary, we believe life is worth the risk. If you’d like to chat with someone about how to better manage your small business, email us here.