Small businesses face many difficulties in their initial years of operation. Some of these obstacles are more difficult to overcome than others; according to one study, 20% of small businesses fail by the end of the first year. 50% fail by the end of their fifth year, and as much as 96% fail by the end of their tenth-year anniversary.
These rates are alarming; it’s understandable why people are anxious about the first few years of a business. However, many typical business issues and difficulties are resolvable. If you want your business to grow and prosper, you must be aware of and adept at avoiding the common pitfalls of growth. You must ensure that your actions today don’t end up causing more issues in the future. Making the most of the opportunities that are available to you will enable you to produce long-term, sustainable growth.
To save you from trouble, we’ve listed few of several challenges that may arise in any business and what you need to do, to prepare you to face them before they knock the door.
3 Most Common Challenges That May Arise
Finding clients
Finding clients is an issue that isn’t exclusive to small businesses; even the biggest, most prosperous businesses employ individuals who work tirelessly every day to find new clients. The problem is far more severe for small businesses and start-ups.
There are a lot of channels for acquisition of clients and leads to concentrate on, but how you decide which ones to prioritize is paramount.
First and foremost is to identify who your target clients/avatars are. Then, your businessperformance will be significantly enhanced by developing an identity. Once you’ve developed your identity, you can start producing content tailored specifically to your target audience and distributing it through the relevant channels patronized by them.
Managing Finances
Any business must have effective cash flow management. To maximize your free cash flow, you should carefully manage every aspect of your working capital. It is essential for a growing company because overtrading can be fatal, and cash shortages can be the most significant factor limiting growth. Planning for your business and evaluating new opportunities should include making the most of your current finances. With limited funds, you might have to turn down incredible opportunities if taking them would deprive your primary business of vital funding. Co-mingling personal and business finances could be another challenge that usually leads to unexpected disaster.
Accepting change
A growing company may face severe risks from complacency and indifference. It isn’t smart thinking to assume your success will continue just because you have managed to stay till now. Your business plan should be reviewed and updated regularly to keep you informed of the dynamic market conditions. It is your responsibility to adapt to them.
A businessman named Solomon Babajide has overcome all of these obstacles and tricky roads and has been producing excellent work for decades. His shared extensive experience will help small to medium business owners grow.
Take advice from one of the biggest names in the business- Solomon Babajide!
Solomon Babajide has over 45 years of experience in global management and has helped both domestic and foreign companies succeed. He has been assisting many people in getting their businesses on the right track and encouraging business owners to take calculated and reasonable risks when they present themselves rather than be afraid of and running away from them.
He is the founder of IDEAS Definition – Global, a firm that offers coaching programs for starting, maintaining, and ensuring the future growth of your business.
If you’re an entrepreneur, you’ll frequently run into challenging situations. However, making difficult choices and following the advice of mentors like Solomon Babajide will ensure that your business is sustained and successful.
