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Five common challenges that businesses face

Businesses have several challenges in common, regardless of company size. Large corporations may cite hiring concerns as their biggest worry, a problem small companies may list near the bottom of the challenges they face. While all companies want to maximize profits and minimize expenses, their priorities and methods of doing business vary considerably. Here are five common challenges that all businesses face.

1. The ongoing effort of growing revenue

For small businesses, defined as those having 11 to 100 workers, how to grow revenue is normally the biggest concern. In part, this may be because small companies often find it difficult to obtain funds from financial institutions to aid in this process. Larger companies look at the issue from a somewhat different perspective. They are more concerned with methods for growing their customer bases.

2. Hiring good employees

Hiring is often cited as the greatest challenge for larger companies, those with 101 to 499 employees or more. In small businesses that maintain a "family" atmosphere, hiring competent people does not seem to be as much of a problem. Large companies find themselves competing for top talent, a search that may be confined to a small geographical area. Also, top employees who leave to start companies of their own often leave gaps that are difficult to fill.

3. Dealing with government regulations

A 2014 Gallup Poll disclosed the prevalence of problems created by government regulations for companies with 51 or more employees. Company leaders report that they are constantly required to adjust the way they conduct business to meet regulatory compliance. Worries include minimum-wage increases and adherence to the government healthcare mandate.

4. Increasing company profits

Small companies are focused on the sometimes difficult effort of sustaining cash flow and increasing profits while larger operations are more concerned with increasing their profit margins. Cash flow and the profits picture for small businesses usually improve as the companies grow.

5. Maintaining integrity

As businesses grow, however, maintaining integrity becomes more of a concern. As more people join the company, opportunities for misdeeds increase. Privately held companies go public, the pressure grows to meet each quarterly earnings estimate, employees expect big bonuses and the stress mounts for everyone. Competition with other organizations now takes center stage, getting ahead means doing whatever it takes to succeed and key employees may resort to lying, deceiving others or even stealing from the company. If the integrity of the company is on the line, if suspicions have developed and accusations are being made, it is time to contact an attorney experienced with business law who can help sort out the problems, offer advice and provide appropriate representation.

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