February 22nd, 2022

Challenges of Being a Small Business Owner

Being a business owner is one of the most rewarding experiences. Entrepreneurs know the feeling of pursuing their passions and making their dreams come true. But as that dream becomes a reality, the challenges of being a small business owner set in. 

Being a small business owner isn’t easy. Here are three of the top challenges small business owners face—and one simple way to overcome them. 

Time Management 

The typical day for a small business owner starts by opening up shop, checking emails, and thinking about strategic plans. But their day can quickly derail when they’re called to put out fires, support a customer request, look into marketing strategies, and complete weekly human resource tasks. 

As a result, small business owners are often working on the business—and in the business. Just because they’re in charge of the vision and strategy for the company doesn’t mean they don’t have their fair share of administrative work. This leads to challenges in time management. Small business owners have to make a trade-off between managing long-term goals with short-term needs. 

Work-Life Balance

Running a business is a labor of love—especially if you started the company yourself. Small business owners are some of the most hardworking people because of their passion. And they often put in more time and effort to achieve their goals. 

Unfortunately, with such a strong work ethic, small business owners tend to lack a work-life balance. A report by Gallup found that business owners work on average 52 hours a week. But it’s not just the work ethic that can have business owners working long hours. 

Founder dependence is where small business owners are unable to take a day off because their company would struggle to operate without them. But never being able to take time off or clock out for the day isn’t sustainable. Eventually, the lack of work-life balance will catch up to small business owners and cause issues at home or work. 

Finding and Keeping Employees

Finding and keeping employees is the top priority among small business owners. Leaders of all organizations recognize this struggle—especially now. The unemployment rate is at an all-time low. The Bureau of Labor Statistics shows it’s been level at 4%—so the competition for employees is fierce.

And with the ‘Great Resignation,’ companies are not only finding it difficult to hire new employees but keep their existing ones. Consequently, 43% of small businesses say staffing is their number one business challenge for 2022. 

Businesses will have to reevaluate their management approach, benefits, and company culture to recruit and retain top talent. Usually, this responsibility falls on small business owners. But they’re already dealing with so much that finding the time to revisit these aspects of the business may never happen. 

How to Overcome These Challenges 

Small business owners may think that these challenges are simply what they have to deal with because of their chosen profession. But that’s not true. To successfully grow a business, you need a support system. 

Your friends, family, and professional connections can only do so much. Eventually, small business owners have to learn to delegate and get help. That’s where Obsidian HR can assist. 

The services we offer immediately free up small business owners to focus on what matters most to them—the strategic goals of their business and spending more time with their families. 

Obsidian HR can handle the administrative tasks that small business owners often handle themselves. Payroll, benefits, compliance, and talent management are all areas that we can support. To learn more about these services and other benefits of outsourcing your HR, download the guide below. 

Download Our Guide: 3 Benefits of Outsourcing HR

Human resources is perhaps one of the smartest delegation choices an employer can make. Here are the three benefits of outsourcing your HR.

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