Whether you are running an Oregon LLC or corporation, your company will face issues. Here are some of the common challenges that you may face when running your Oregon company:
Client Dependence
If only one or two clients make up the majority of your income, then you are less of a business owner and more of an independent contractor. You have to find ways to diversify your clientele. You can conduct market research to better understand the needs and interests of your target consumers. It may also help to reach out to them using effective marketing strategies. You can start by utilizing social media sites.
Money Management
When you are running a business, it is crucial to have enough cash to cover all your bills. To avoid this issue, you may need to be heavily capitalized. However, it may be hard when you are just starting your Oregon LLC. That is why many startup owners retain their day jobs while building their businesses. Properly managing your finances may also be more important once the cash starts flowing into your business. While accounting and taxation may be among the skills that most business owners have, it may be best to leave the job to a professional. You may need assistance to ensure that your company’s books are in good condition.
Fatigue
The time and constant pressure to do well can wear on most individuals. Some business owners get stuck working much longer hours compared to their employees. Additionally, they also carry the burden of fearing the failure of their business when they are not around. That is why they are more likely to avoid taking time away from work, which may be necessary for them to recharge. Fatigue is often something that company owners do not think about. However, it may lead to problems. You may end up making rash decisions. You may even get too tired and choose to give up. So, you have to find a pace that will keep your company without overworking the owners and employees.
Founder Dependence
One challenge that many companies face is that they are too dependent on the owners. So, the problem is that the business cannot operate without the founder. Overcoming this challenge is easier said than done. The business owner has to give employees or managers more control. However, that may be hard to do in reality. Some founders find it hard to compromise on the quality of the work. What you can do is train your employees and help them learn the ropes of the business. This way, you can slowly let go of control. Having reliable employees will let you focus on your responsibilities as an owner while they take care of other important tasks.
Balancing Growth and Quality
Sometimes, businesses may face issues as they try to pursue growth. At one point, you may need to make certain adjustments to scale up your production or service operations. You may not be able to manage relationships with every client or inspect every step of the process. However, attention to detail and personal engagement are good selling points that can help you reach success. That is why many business owners are tied to these habits. What you need to do is find a middle ground. You have to think of a strategy to grow your Oregon LLC while maintaining the company’s brand. Compromise is key.
Increased Competition
Through the years, starting a business has become easier. It no longer takes months to get a company started. Now, you can be in business as long as you register with the state. That is beneficial for many startups. However, it may also pose a challenge. The ease of forming a business increases the level of competition. You may find various businesses competing for every product that you sell or service that you offer. There may also be companies focusing on a single item, which means they only focus on ensuring the quality of that. The increase in available selections in the market makes it more difficult for companies to retain clients. That is why it is important for you to ensure that your company stands out. Invest in an effective marketing strategy. You should also make sure that your LLC provides a good customer experience.
Having the Right Staff
Whether you are a big or small company, finding the right people to work for you can be challenging. When you finally find skilled staff, another concern is retention. Additionally, a work environment is also composed of people with different personalities and beliefs. It may be difficult to have harmony in the office. As the boss, you should learn how to deal with different personalities and promote a culture of empathy. You can also tailor your management style depending on what drives your team members. Having good communication with them can also help you better understand and manage the team.
Proper Documentation
A common mistake that many startups make is that they follow a certain pattern when forming an LLC. They copy the way other companies run. The problem with this is that you may end up forgetting certain requirements, such as proper documentation. There are various reasons why it is necessary to keep your company records updated:
-
- It will maintain your legal protection.
- It will serve as proof of membership percentages.
- It will define the scope and limitations of the management team.
- It will document the contributions and loans of members.
- It will help you purchase or transfer certain assets into the name of your company.
Keeping Your Oregon LLC and Personal Finances Separate
Many LLCs make this mistake. Sometimes, the owner may need extra cash to pay personal bills. So, they end up using the money of the company. It may also happen the other way around. A company may be short on finances, so the members use their personal funds. While doing this may help, it may cause issues. To maintain the protection of your assets, you need to make sure that the company and personal finances remain separate. All the income of your LLC should go into the account of the LLC. In case your company is short of money, then the members can deposit money into the bank account of the company. Additionally, you also need to properly document the transferring of funds as a loan or capital contribution. On the other hand, if a member needs money, you can use the excess funds of the LLC. However, you can pay the said member and reflect it as a return of capital, loan repayment, or profit distribution on your company books.
Remaining Compliant with State Laws
When running an Oregon LLC, you will have to make sure that you remain compliant with state regulations at all times. However, it can be difficult because of your busy schedule. As the owner, you have to focus on thinking of ways to grow the business. You may not have time to take care of reports and filings that the state requires. Many companies face this problem. Some of them end up missing deadlines, which can lead to a bad status with the state or even administrative dissolution.
For example, a Oregon LLC needs to file an annual report and pay the $100 filing fee. This document will update the records of the state on some basic information about your company and registered agent. Depending on your business activities, you may also need to pay certain taxes. To do this, you will have to submit a form to the appropriate agency.
If that is the case for you, then it may be best to hire a third-party organization like DoMyLLC to handle all your business compliance requirements. Our team of experts has years of experience in handling paperwork and processes for businesses in all 50 states. We also offer personalized solutions to ensure that the service you are getting fits your company’s needs. We also offer live support. Contact us now and discuss the needs of your Oregon LLC.