The key challenges to small business survival
For every startup business, the first 5 years are the most critical and determine the chances of survival in the long run. Research conducted by the Bureau of Labor Statistics shows that 50% of the business will last 5 years or more. This number reduces to a mere one third after ten years. So, what exactly are the reasons behind business failures? To answer this, National Small Business Association report points out the following difficulties, faced by firms:
- Economic Uncertainty (49%) – Inability to actively cope with unexpected changes in the coming years poses a threat to small businesses. This mostly happens because companies lack the mechanism required to deal with such situations.
- Regulatory Burdens (29%) – With the rules and regulations getting tougher every year, it becomes harder to meet the set legal requirements. Small businesses tend to suffer more as they already operate on a tight budget and cannot spare bear the overhead costs.
- Cost of Technology (9%) – Rising technology prices are likely to slow down the growth of small and medium business firms. One way to deal with this problem is to make smart technology investments with a greater rate of return.
Dealing with business failures – the way forward
While most of the issues faced by firms reflect circumstances at the macro level; the solution to such problems lies at the micro level. What this means is that companies need to start working at the very basic stage to achieve positive outcomes. Majority of the challenges can be addressed through the use of a robust cloud-based management software.
This software offers you supercharged features to tackle the issues outlined above. The operating capacity of any company is determined by its assets and equipment. In order to boost the performance, it is necessary to refine your equipment management practices.
Being a small business, here are a few ways you can get the maximum returns on your equipment:
Way #1: Monitor equipment movements for streamlined workflows
The most common malpractice faced by small firms is the misplacement of valuable tools and machines. This mainly happens due to the absence of a regulatory system in place. The loss in inventory leaves a serious impact on the business finances as well as it pulls down the overall productivity levels. Such adverse situations can be easily avoided through the use of equipment management software. This software uses barcode labels to track your tools and machines, everywhere, all the time.
By doing this, you can have constant control over your equipment. This practice also makes it easier for employees to check-in and checkout tools for daily projects. An automatic system increases data transparency and lowers the risk of theft and internal fraud.
Did you know? As of 2016, there were 28.8 million small businesses which accounted for 99.7% of the total businesses in the U.S.
Way #2: Run frequent audits to ensure regulatory compliance
Majority of organizations lack mechanisms to cope up with government regulations. Due to this inability, many firms tend to experience faltered growth and often fail to meet their goals. In order to deal with this problem, it is advised that organizations conduct frequent audits to maintain updated asset records. By doing so, you can avail the following benefits for your organization:
- Operational improvements
- Compliance with quality standards
- Accurate information on asset ownership
- Estimation of business value
- Tax assessment
- Power to file insurance claims
Equipment management software lets you attain all this and much more. Detailed data evaluation enables you to design compliance strategies to meet the latest regulations. When you know your assets well, you will be able to optimize their use. Carry out seamless audits to maximize utilization and enhance workplace efficiency.
Run audit reports to forecast future trends and patterns.
Way #3: Generate custom built activity reports
The business world is not immune to seasonal fluctuations and uncertainties about the future. But successful companies devise smart risk management strategies to deal with such situations. While there is no guaranteed way to ensure 100% results, taking precautions always helps. Building your future plans can be quite complicated, if you don’t know where to begin. The first step is to create a comprehensive database for all your equipment. Next, all you have to do is examine that data for any similar trends over the past years.
While this can be a little difficult to do manually, equipment management software does it for you. With the option of customized reports available, you can generate analytical data on the tools of your choice. A careful study of this information will help you outline the current strengths and weaknesses. When you have access to critical data, you have a higher chance of improvement in management processes!
Did you know? Small Business Index shows that the average amount of startup capital is $10,000 and most of this amount is self-funded.
Way #4: Schedule maintenance sessions to refine tool performance
The success rate of daily operations is dependent on how effectively a task is executed. In order to gauge this probability, it is necessary to look at the performance of your tools and machines. Every piece of equipment has a useful life, during which it needs constant repair and maintenance. If you fail to conduct repair sessions, your tools will break down before time. Well-maintained equipment is likely to produce favorable outcomes as compared to malfunctioned tools.
So, how can you get started on this? You can decide to invest in an equipment management software for your business. With this software, you can schedule service sessions for all your assets. When you arrange for a repair workshop, you can notify your employees through alert emails. Sessions planned in a timely manner have a high rate of success and it prolongs the life of your equipment!
Schedule frequent maintenance workshops to keep your tools in good shape.
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EZOfficeInventory is an online small business equipment management tool used by various organizations to streamline work operations for improvement in productivity and increased efficiency.