Biggest Problems Small Businesses Face

Anybody can start a business; however, the difficulties are with managing the process on a long-term basis. Small to medium-sized enterprises are the backbone of Northern Ireland’s economy, as according to the Federation of Small Businesses there are over 180,000 in Northern Ireland alone.

Additionally, with the advances in new technology and online marketing it is more difficult than ever for small businesses to grow. Here we have listed a number of challenges that every small business will face:

Lack of Funding

In today’s environment, money management is a big challenge that most small business owners have to worry about and with rising costs this leads to a super competitive market. Since most businesses start with limited finances, it can be a challenge to maintain a constant cash flow and to grow your business.

With this said, there are a variety of different cash management tools that help you to keep track of the money coming in and out of the business. Additionally, assisting you with financial analysis, budget estimations, capital investment and credit scores. By implementing one of these tools, you will be able to manage your finances ensuring that you can run your small business efficiently.  

Marketing

With the digital landscape constantly changing, it is a challenge for small businesses to keep current. Since consumer behaviour is becoming more sophisticated it is even harder to convince them than ever before. This will be the real issue with not hitting your lead targets or being unable to close deals with potential prospects.

Try to be everywhere that your potential clients are by creating accounts on well-known social media sites. Thus, raising your brand awareness as you can stay connected with your audience 24/7. Create valuable content that your target audience want to hear and would find engaging, by doing this you can ensure they are interacting with your brand. Marketing automation tools are a great way to schedule content and marketing activities. Create a marketing budget and make sure you stick to this.

Customers

A lack of resources can make it difficult to retain loyal customers, with the digitalization of modern business, it is vital that at your core is customer service. By segmenting and identifying your ideal customer, you can ensure that you can connect with them over social channels such as social media and email etc. Thus, you can gain an insight into your customers’ needs and how you can help solve their problem, resulting in you building a relationship with your prospects.

When talking to your prospects, organise demo services, ask them what issues they face and tailor your offering to solve their problems. By delivering expert customer service, you will stand out from the competition and larger competitors as most people fail to close a deal as they leave due to unsatisfactory customer service. Your customers are the key to your success, so ensure that you can gain an excellent reputation for new customers.

Leadership

The quality of the leader, determines the success of the team, as they must have the ability to think strategically on all aspects of the business. This can be a challenge for small businesses as a leader must be able to see the whole picture of the business, as they will need to search for new updates in order to grow the business. If a leader does not have this ability it will be very difficult to sustain the business as it will eventually be unsuccessful.

In order to combat this, ensure that you listen to everyone. By listening to other leaders, you can gain tips, other employees you can work more efficiently and customers will give you an insight into their needs. Talk to your employees and encourage them to hit their targets. By simply having conversations with your team you will motivate them by gaining their trust. Additionally, successful leaders are very knowledgeable, and are able to constantly upskill themselves and learn new information to keep up with new advances in the business world.

Recruiting the right talent

A huge struggle for small businesses is recruiting the right talent, as many are directed by salary issues or emergencies. However, it is more beneficial for your company to find the right fit for that position. Train your existing employees regularly as this will ensure that any problems or issues are being dealt with etc. An employee who isn’t a great fit for your business can do a lot of harm to your success.

Spend time finding the right person who is enthusiastic about your offering and can handle the responsibility required to be successful in that position. Most small businesses don’t have the right people in the right roles resulting in deadlines that aren’t being met and unhappy clients. Thus, it is essential for a small business owner, to be a key person in employing members of staff.

In summary, there are many different problems that small businesses face when trying to generate business. These can either make or break a small business, however, by being smart you can ensure that your business is successful.

However, if you are struggling with any of the above problems or find that time management is an issue, contact us here at HMC Global. We have a proven record of helping SME’s with their sales and marketing or business development. Trust us to sort your challenges while you spend more time selling.

To find out more contact Nial Borthisle, Head of Corporate Sales on nial.borthistle@hmcglobal.co.uk


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