Problems Need Action
March 15, 2017
Small businesses and SMEs constantly have a multitude of problems that can ultimately affect bottom line profits. These situations might be restricted cash flow that hampers needed purchases or poor employee morale that affects customer satisfaction. Some problems might arise immediately while others fester over a long period of time before erupting into a situation with disastrous results.
Whether the underperformance of a business is immediate or slow, the end result remains the same...decrease in bottom line profits. To correct operational problems, immediate intervention is the key. Ignoring an issue and postponing a remedy is not a solution but rather a delay tactic. Rarely do business problems solve themselves. Owners and managers must confront problem situations with a positive, head-on manner to produce immediate, productive results.
Small business/SME owners and managers must develop the ability to make decisive, knowledgeable decisions. There will be a continuous cycle of operational issues, situation analysis, problem-solving alternatives, and decision-making.
Although one problem might be solved, the cycle will be repeated as new operational issues arise. Experienced owners and managers realize this is a normal part of operating a small business. Competent managers welcome these situations as a challenge to improve operational efficiency and maximize profitability rather than retreating from problematic issues.
Considering that there will always be a multitude of common problems affecting a small business, it is how these situations are handled that will have a direct effect on the success of the business. (1) Making an immediate decision, (2) obtaining input and consensus to make a future decision, or (3) hiring a small business or SME consultant depending on the nature of the problem might be the way a particular owner or manager remedies a problem.
Regardless of the nature of the business issue, owners and managers must show leadership ability in resolving those issues to eliminate or minimize any detrimental effect on the business. Solving a challenging situation, learning from the experience, and preventing a similar situation in the future strengthens a small business and prepares it to better handle new situations as they arise.
Association of Accredited Small Business Consultants