Top Ten Challenges Facing Small Business Owners

1. Knowing your business: Know what the key financial indicators in your industry are so that you can know if your business is progressing or regressing.

2. Knowing the basics of business management: The basics include accounting and bookkeeping principles, production scheduling, personnel management, financial management, marketing and planning for the future.

3. Having the proper attitude: Realistic expectations coupled with a strong personal commitment will carry you through.

4. Having adequate capital: From establishing a good relationship with a bank to maintaining a business credit report, sufficient capital is vital to surviving the first year.

5. Managing finances effectively: Cash flow entails ongoing capital, inventory management, extending credit to customers, and managing accounts receivable.

6. Managing time efficiently: A combination of discipline, delegation, and planning is essential for effective time management.

7. Managing people: Finding and keeping qualified personnel is critical to building a successful business.

8. Satisfying customers by providing high quality: You will establish and maintain credibility with your customers when you constantly deliver the best possible product or service.

9. Knowing how to compete: New ways of selling, knowing the marketplace, a clear understanding of your niche, and sticking to your original plan are required in order to effectively compete.

10. Coping with regulations and paperwork: Examples include quarterly tax payments, withholding taxes, employee manuals, profit-sharing plans, sales tax records and industry-related reports.