Challenges of Small Businesses


One of the biggest challenges surrounding small businesses is how to create a strong internal culture, employee engagement and of course, retaining employees.

Being small means the business owners are hands-on as well as having to be strategic and focus on growing their business! It is important to hire the right people with the right technical skills and experience. There is usually not much time, if at all, to provide mentoring or coaching to the employees.

With the current shortage of talent in the market, recruiting the right people for the right jobs and investing in future leadership is equally as important in any organization whether big or small for longevity and ongoing success.

However, it is not impossible – it is all about how well you treat your employees and communicating regularly about your goals, sharing the same purpose, values and the “why”.

It starts with the leadership team.

Empower your team to get on with their jobs by providing the right tools, resources and the right support.

Some of the most successful organisations believe in caring about their greatest asset by nurturing their employees to do their best by providing education, training, encouraging innovations, and most importantly, rewarding & recognizing excellence, sometimes, with a simple “thank you”!

Carry out regular engagement surveys using mini pulse checks to find out what employees want, if their happy and what or where to further improve. It is important for employees to know their feedbacks are valued and that their feedback will be implemented if it will increase engagement or create improvements to the organization and clients.

Business owners and the leadership team are responsible for creating a strong internal culture. Challenge your employees, have fun, facilitate instead of micro-managing, but at the same time, employees must understand the organisation’s “why” & “purpose” e.g is it to provide customers with great service or to provide great marketing to clients to increase their profitability or to help clients to use the right technology to increase their bottom-line etc.

Your employees must also understand and know what their roles are, and of course why they are doing what they are doing. Is it supporting another team, or supporting customers or bringing in new business! With current technology and the various systems available in the market, automate as many administration & recurring tasks as possible so employees can focus on their key tasks.

Focus on your employees and truly care about them as “people” – not just as employees. They are there for your business and most importantly - demonstrate, acknowledge, celebrate wins and promote collaboration.

“Action speaks louder than words”!

At the end of the day, it is important for employees to understand that they are there to deliver the organisation’s ultimate business goals so everyone can share in the success!


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PAQ Group - Your Bookkeeping Specialists is a leading bookkeeping and payroll firm that assists SMEs achieve a stress-free bookkeeping experience.

Get in touch today at 02 8103 3065 or email us at sales@paqgroup.com.au

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