5 common small business problems and challenges
Are you leading a startup? Do you own a small business? Are you planning to open a new venture in 2020?
Business is an activity that demands management, leadership, and enthusiasm. It associates both ups and downs at certain intervals. All established businesses was once a startup, you might have listened or read struggles of small business owners who faced the problems and now running multimillionare companies. There are so many common business problems like finding customers, generating leads, building an email list, hiring the right people for the job, controlling finance and expenses, etc they faced and successfully overcome it.
Many times, you’ll find and think to take a step back or rethink your strategy is right or somewhere it is wrong. But, for every problem there is a solution. Here we discuss the basic challenges & problems we face while running a business and how to overcome it.
Biggest Challenges and problems for Small Business owners:
- Finding customer/ Customer retention: Business leads and business generation is a key activity for a startup to mark growth in the industry. But, it is not so easy task. One needs expertise, marketing skills, and network for this purpose. Even, it is one of the common small problems encountered by established businesses at some points.
Also, a business needs to focus on customer retention together with customer acquisition. It will work as a business booster and help you to backup fund and run business smoothly.
To gain customers, think like your customer and your product/service. Identify your marketplace (local/global), competitor strategies, and unicity of your product/service that makes it dominating than your competitor’s asset. Also, do a thorough analysis of your customer’s interests are and what activities they do to find businesses like you. In today’s era, SEO and social media are the best services to find potential customers. Focus on branding and rank for targeted keywords, you will start receiving new potential leads for your business that drives sales to you.
Once you closes a lead or sales, don’t just stop. Start building a healthy relation with your client. As per your business niche (product/service) think what best or new you can offer to the client and pitch them. Remember, be formal and genuine while pitching and avoid hyperchasing.
Small Business Management challanges
- Expense and Finance Management: Finance is the backbone to your business. A proper finance management will save you money and contribute to your venture. But, if not done properly, it will harm your business to a great extent.
Businesses have different sectors and departments, so it is ideal to keep a check on the cash flow activities of every department. TakeFin is your need. This business expense tracker app lets you manage and track daily expenses records in a digital data format. Also, you can keep on analyzing the digital records in a graphical format that allows you to have a stronghold on your financial activities. In this way, you can monitor finance records of all departments and can do better decision making on how to improve your business’s financial asset.
- Staff Management: Your staff is your asset. If they are productive, your business will definitely mark growth for sure. For that purpose, you need to establish a keen channel with them. HR department could be the best option to manage the staff for your small business. The department will be responsible for communication, work management, and tracking of your staff. Also, there are some great management apps like (Basecamp, Monday.com) for work management. These apps help you to manage the workflow and keep yourself updated. It manages all your staff records and data of your works. In addition, you can add your clients to projects, so they can get regular work updates and suggest changes.
- Maintaining Online Presence: One of the biggest issues handled by the small business is online market presence. It directly affects your business in these competitor world. Lack of Marketing affects the service and promotional activities of business. Small businesses also not have much more data of their ideal customer and at the same time also not available in the market is the biggest loss for the company or organization.
There are lots of social platforms are available in the market to present yourself online.
Core small business challange
- Funding: A business needs capital to run. You have various expenses such as office rent, employee salary, etc. Various startups initiate with a limited budget and quit just because of a lack of funding. But, if this a case then you should look Bank loan, or try to get finance for your business from the financial institution.
Tip: If you find hard to get a loan for your business, discuss your ideas with potential investors and look for a co-founder to invest in your venture. It will help you get rid of funding issues.