5 Typical Small Business Problems and Best Ways to Tackle Them
There is nothing small about managing a small business – this particular company profile makes up the majority of the economic capital of many countries of the world, making it a very competitive business model, and a very profitable one when you find the perfect gap in your market. Precisely due to the massive competition and the continuous technological advancements that keep all companies on their toes, small businesses often encounter issues that hinder their growth.
How you tackle them matters especially during the first several years of your existence, so the following tidbits of advice can help you define the best ways to handle your setbacks and ensure optimal growth for your small business!
Building a reputation
For companies of all sizes, small ones included, whose names have been known for a while, it’s easy to talk about getting new customers or keeping the existing ones. They know the ins and outs of their niche, and they know their customers so well that it’s very difficult for newbies to step in and steal their spotlight. However, a new business has to start from scratch and become a household name from a completely anonymous company.
There are several ways to deal with this issue, from talking directly to your target audience, testing your marketing and design ideas, all the way to finding platforms where you can make your business known to others. Social media is the modern-day chatroom for brands, so make sure that you inspire engagement from day one and collect as many honest reviews as possible – this type of feedback is crucial in establishing your name in the market.
Keeping up with the times
As we’ve previously mentioned, living in the era of constant advancement makes it difficult for small businesses to keep up. There is always another project management platform to try, or another marketing trend to follow, and your budget is far from infinite.
Make sure that you know what your competitors are doing, how they position themselves, how your customers’ views are changing, and the tech trends you could introduce. Anything and everything all the way down to the latest hashtags can make or break your campaign, or even your growth rate on a much larger scale.
The old saying that you have to spend money to make money stands true especially for small businesses, and making the right investments at the right time is key to growth. However, every company has to factor in the high likelihood of spending more than it makes in the first year or so, and find a contingency to cover the necessary expenses.
If, for example, you need to work with a marketing agency to boost your online ranking, or you need to maintain your payments to a bookkeeping company, using a payment portal can be the right solution for you. Once you start making more than you spend, paying off this loan will be a much easier task than making up for lost marketing efforts you had to invest in.
Finding and retaining talent
Reputable companies have it easier in yet another respect – they can find qualified employees who are much more eager to stay on board. While you certainly have much to offer, you also need to communicate the perks and challenges clearly in order to attract the right talent.
From making sure they know what to expect in terms of benefits, such as paid leave and health insurance, all the way to presenting and clearly outlining what their job should entail, every future employee should feel eager to join your team and help you grow. If you cannot communicate your passion and share your values with your potential employees, you’ll face a similar challenge when it’s time to define and reach out to your customers.
Wearing many hats
As a company owner, the key manager, the head of your finances, and the head of marketing, among many other roles, keeping up with the needs of each of your departments will become overwhelming sooner or later. And it is to be expected, since another saying comes to life in this area of business, and that is that a jack of all trades is a master of none – and you need to define your role and delegate.
Negotiating with clients, signing contracts, and similar priority work can always reasonably fall under your scope of work, but daily sales, invoicing and other tasks can easily be delegated to your team, or even outsourced if needed. Just make sure that your attention where it’s needed the most, and you’ll allow your business to grow!