Just started your first small business? That’s great! Now that you’ve fully embraced the entrepreneurial life, growing your company should now be your goal. With consumer standards getting higher and competition increasing by the minute, finding ways to improve your services is a sure way to stay ahead of the curve.
But, as simple as this may sound, running and improving your business is no easy task. Research shows that about 20% of small businesses fail due to operational and management related issues.
Luckily, most small business challenges can be easily solved with a sound strategy. To help your company flourish in the years to come, this guide will discuss several problems your business may encounter and how you can overcome them.
[1] Attaining New and Retaining Old Customers. No matter what industry your company is in, know that your customers are the lifeblood of your business. You may have excellent products and services lined up, but it won’t matter if your target audience is unaware of you. Lead generation can be a very challenging task, and this is the main reason why many small businesses have doubled down on marketing.
Fortunately enough, we live in a digital age, and brand-to-consumer interactions are easier than ever. Unlike before, when businesses were limited to traditional forms of advertising, you can now use various lead generation tools and digital marketing channels to drive sales.
Increasing brand awareness is just as important as the services you provide, so engaging with your customers through email, social media, or blogging will help you drive your business forward.
[2] Cash Flow Issues. Accounting mistakes are fairly common to first-time small business owners. Mismanaging your finances and failing to keep track of who owes you what will prevent you from having positive cash flow, and this may eventually pave the way for other problems.
An easy fix to this mistake is to practice diligence and hone your financial management skills. However, there are other simple ways to keep cash flow issues at bay. Apart from diligently monitoring transactions, you should give your customers more payment options.
Considering the impact of the COVID-19 pandemic, know that customers’ priorities have changed, so you can expect them to become more frugal when shopping. Letting your customers make installment payments or cashless transactions at their convenience will convince them to do business with you and help you keep track of your finances.
[3] Hiring Competent Employees. Staffing companies and recruitment platforms may have entered the picture, but hiring the right talents remains one of the most challenging obstacles you’ll face. Given that companies are always on the search for the best employees available, fighting in the recruitment race can be a very frustrating experience.
Absorbing the wrong people won’t only be detrimental to your operations; it can greatly damage your financial health, too. If your needs are becoming more urgent by the minute, don’t panic. Aside from workforce planning and building a recruitment strategy, there are other ways you can fill the vacancies of your company.
To increase your chances of hiring competent employees, you should consider adding enticing benefits such as flexitime. In case you can’t afford multiple salaries and paid leaves, finding an outsourcing partner can be a great and cost-efficient alternative.
[4] Spending Carelessly. Your business may be thriving, but don’t get too excited. Having the urge to upgrade your equipment or invest in new software may be normal, but hastily-made purchases will force you to walk on a financial tightrope. To save yourself from stress and strain, finding ways to cut down your overhead costs is the easiest way to gain more breathing room.
Given the current state of your company and industry, try to find out which areas of your business can be cut down. Then, creating a budgeting plan will ensure that your savings remain intact and allow you to make payments seamlessly.
[5] Taking Cybersecurity for Granted. Many entrepreneurs fail to realize the importance of cybersecurity. With the world shifting towards the digital space, hackers are always on the search for the next big fish to catch. If you manage essential information through the web, use cloud-based software, and utilize digital platforms, keeping your database safe will be crucial to business survival.
Falling victim to a cyberattack can ultimately lead to the downfall of your business. Apart from having to pay hefty fines, leaking important data such as credit card information can deal a massive blow to your reputation and put your customers at risk.
Teaching your employees about the best cybersecurity practices should prevent unwanted people from accessing your data, but if you want to fortify your defenses further, consulting with an expert should give you the necessary solutions.
Plan for the Challenges
In the course of running your company, you’ll eventually encounter several obstacles that can impact your overall stability. When faced with these scenarios, your management skills and ability to make the right decisions will let you stay afloat.
