Being a Small Business Owner Is Not as Glowing as You May Think
Owning a small business may sound appealing on the surface due to the fantasy of being one’s own boss; however, there are many hurdles that come with owning a small business that many aspiring entrepreneurs are unaware of. One of these such issues is related to having a startup business model without researching all of the facts and requirements involved. Particularly, many small business owners suffer a great deal of stress pertaining to the international banking industry and how they get their money across borders and currencies.
Common Obstacles That Small Business Owners Face
When starting a small business, it is essential to consider what it is going to take to get your great idea into a successful business. In the “startup generation” that we are now living in, there are many brilliant minds with exceptional business ideas. That being said, many of these brilliant minds do not have any concept of what it truly takes to get a business idea off the ground and to ultimately, grow it into a success.
A common issue experienced by a new small business owner is the desire to expand into every single market at once. This is a great idea on paper; however, it is essential to grow a specific area of the business first and then branch out when there is one sector of the business that is stable.
Additionally, small business owners also struggle with is client dependence, which is when a startup or small business relies on one client for more than half of its income. Small business owners have to overcome this and branch out to receive many different clients in order to see overall growth in the business.
More common struggles are described here on Inc.
The combination of these factors create a very demanding atmosphere for a budding entrepreneur; however, one of the main principal problems that the small business owner is going to face is lack of cash flow. Thus, they are going to have to obtain some sort of financing at the beginning to take their business to the next level. This factor can be detrimental to many young entrepreneurs in the United States and United Kingdom because they do not have the required credit score to take out small business loans. Small business loans are periodically decreasing, which is making such loans even more difficult to obtain for those individuals that could really use them to make an extraordinary small business.
Global Banking Challenges with Small Business Owners
Global banking has also created many more challenges for small business owners. Due to the increased presence of the Internet, small businesses are now conducting commerce with more nationalities than ever before. While this is wonderful, it does come with its challenges. Small business owners are many times tempted to only conduct their foreign transfers with banks; however, there is a great deal of potential in using business foreign exchange transactions to make and/or receive international payments.
What small business owners seek to gain from doing this is that they will be able to transfer larger amounts of money for less fees according to InternationalMoneyTransfers.org. The reason for this is that they will be avoiding the high fees that banks are charging their consumers.
Banks charge both a sending and receiving fee, which means the small business owner is usually hit twice when they are making a sale.
Depending on the products that they are selling, this could be a major loss for them. Small business owners have to be particularly careful with this because if they are not, they could lose a great deal of their profit margin this way.
Final Words on the Topic
We are now living in a globalized world that is more connected than ever before. With that increased connectivity comes a major liability for individuals and small business owners alike to be paying too much for their international wire transactions. Due to the increased amount of transactions that cross international borders every day, a possibility is blooming for small business owners to have a medium for making online payments that makes the historic currency divide less separated than ever before.
If small business owners think pragmatically, they will end up being successful; however, they have to remember that it takes a great deal of work and dedication to get their business to the place that it will be able to survive effectively in the global marketplace. The combination of all of the headaches that a prospective small business owner will face tend to pose the question, “Is it worth it to start a small business and will I end up making more capital than working for a company in my area of expertise?”.