4 of the biggest challenges for young businesses
Young businesses face a lot of challenges in the current market. It takes a lot of determination and patience to ensure that your business will succeed. Below we address four of the biggest challenges you may face and ways in which you can try to avoid these pitfalls.
1. Sourcing Customers
Finding customers for your business takes time. You’ll find that due to being a new business you’ll have to work hard to become trusted by new clients. It can be hard to set aside a big chunk of money for marketing and advertising as you need the funds elsewhere. However, this can highly limit your exposure to the market and make it very hard to engage with potential customers. Draw people in with your brand and with competitive pricing. You’ll need to have a clear and strong ideology. The modern consumer is becoming accustomed to new brands popping up all the time. If they see something which catches their eye or strikes a chord with them they will want to investigate further. Similarly, think about your company ethos and who it is you want to purchase your service. Ask yourself the following questions – Who are they? Where can I find them? And then do it. Go and find them and offer them your services face to face and don’t forget the power of social media.
Always ensure that your customer service is impeccable and that you deliver your service effortlessly with drive. Positive word of mouth is the best way to spread your brand, so if you treat people right they will pass on their experience to people they know and you’ll slowly build your clientele.
2. Finding the right staff
Without exception, every business owner we speak to says that their biggest challenge is staff – finding the right staff, retaining them, and ensuring they buy into the vision of the business. We freely admit that we have no magic answers here. In fact, if someone could develop a formula for recruiting and engaging the right team members, they would make millions.
A small business is almost like a family. And, like many families, they can work well, they can be dysfunctional or they can go off the rails just because of one person’s issues. Sometimes, you can feel like you are part-boss, part-colleague, part-parent. As the time proven adage goes ‘in big corporates, one of the biggest challenges is politics in the workplace. In small business, it’s personalities’.
When you work in a small environment, each team member’s personality can have a huge impact on the harmony and productivity of the business. The key is to learn how to deal with different personalities, figure out what drives each individual team member and tailor your management accordingly.
3. Digital Strategy
The ever-growing digital realm is continuing to reward organisations that have a comprehensive digital strategy while also making it harder for organisations that aren’t investing in this area to gain traction.
2015 saw the introduction of mobile friendliness to Google’s website ranking algorithms, and with good reason. Devices like tablets and smartphones are fast becoming the devices of choice for consumers and are increasingly common in business.
The division between those businesses that have a strong digital strategy and those that don’t will become clearer in 2017. Staying ahead of developments, like the growth of mobile devices, will ensure that companies manage this trend effectively.
4. Money Problems
The main problem cited as the reason for the failure of a small business is issues with cash flow. The lag time between receiving payments and meeting ongoing expenses can place a business under real pressure. Furthermore, most companies won’t make a profit for at least two years and many have within their plan contingencies for cash flow.
As such, you need to be patient in working toward your goals and strategise to manage these considerations. Make sure you have a detailed business plan, realistic projections & equip yourself with an experienced accountant & credit adviser.
Look for great cash flow management apps which can help you keep a tight track on budget. There are a lot of tools out there, especially online, which will offer free services to get you on board. Be clever with where you spend your money, persevere and you should be okay.
Need assistance with financing your business?
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