Contributed post
Whether you’ve already launched a business or you’re just thinking about starting one, making the most of 2018 should be top of the agenda. Most entrepreneurs will be thinking solely about all the positive additions that can be made during the year ahead. But you should look to go one better. By avoiding problems, your venture will naturally stand a far greater shot at success.
Removing the element of surprise is the first step to overcoming those issues. As such, a little research and preparation should enable you to be ready for anything 2018 has to throw at you. When those potential negativities are banished, you’ll be able to focus on the positives too.
#1. Inadequate Customer Engagement
Gaining a positive response from customers is the main aim of any modern business. Without clients, triumphs in other aspects of the venture are virtually redundant. Unfortunately, many entrepreneurs fall into the trap of trying to please everyone. This can result in overly broad branding and products. Subsequently, finding your niche is vital.
Understanding the target customer profile will allow you to think about the tone of your marketing content. However, you also need to consider how that information will reach them. Younger audiences are far more likely to use their smartphones over browsers, which is why a great App will serve you well. Likewise, an appreciation of social media and other key items can serve you well.
Gaining interest from the customers won’t generate success on its own. Nonetheless, this is the first step to achieving the desired outcomes. Do not forget it.
#2. Poor Conversion Rates
As already touched upon, interest without conversion is futile. Many businesses will find themselves facing low sales figures in spite of a strong presence. One of the reasons may be that you are attracting the wrong audience. This is why target marketing should be considered essential. After all, PPC and other campaigns can be tailored to specific demographics.
Another major source of damage, particularly for digital businesses, revolves around CTAs. Customers need a gentle push towards a purchase, so using a call-to-action in the right manner is everything. From email marketing streams to on-page promotion, the engagement needs to be directed at a completed purchase.
On a separate note, your business needs to provide safety for the consumer. If the data protection systems are lacking, this could be the main source of your problems.
#3. Lost Profits
Making money in business is hard enough at the best of times. Unfortunately, you’ll make it infinitely harder when you allow money to slip through your fingers. This needlessly occurs in many businesses and is one area that you must aim to rectify in 2018. Even if your company is fairly well established.
Theft and burglaries are probably the most common concern. These issues can be prevented with the right CCTV and alarm systems. Then again, it still pays to protect yourself with a suitable insurance coverage. On a similar note, you must extend your protection to legal issues. These can include copyright infringement or slanderous accusations. The damage caused by those problems can be huge.
Another source of lost money comes from bad debts. Some clients will stop paying for good. However, checking their credit history at the application process should reduce this problem. It’s better to be safe than sorry.
#4. Excessive Costs
Preventing others from harming your business profits is important. In truth, though, most entrepreneurs are their own worst enemies, and it’s because they waste money. It’s true that you must speculate to accumulate in modern commerce. Still, this cannot be an excuse for overlooking the need for value.
Every dollar saved is a step in the right direction, especially when there is no impact on the quality of goods and services. Going paperless can be a great way to cut down on printing costs while also saving time and reducing the carbon footprint. The move towards digital communications may also open up the option to operate from smaller offices and locations. This can save a fortune in rentals.
Ongoing services such as your delivery and packaging suppliers can fluctuate in price too. The cheapest option is always the most valuable. With a little research, though, you should have no problems finding the best outcomes.
#5. Strained Relationships
In today’s world, it’s quite uncommon for a business to handle every element of the operation on an in-house basis. Your partners could include suppliers, distributors, affiliates, and investors among many. When you rely on someone else for your venture to run smoothly, a soured bond can spell disaster.
Being prepared for the worst is always advantageous. As such, it’s imperative that contracts are drawn up to avoid any confusion from either party. In some situations, it’s also worth including a break clause. If things don’t work out, you’ll have a far easier escape route.
Most of the time, those disagreements are purely professional. If they do become personal, it may be possible to repair them. Even if it’s not, avoid confrontations as the fallout will only harm your reputation. Being dragged down by an unprofessional or unfriendly competitor simply won’t do.
#6. Cash Flow Issues
Every business needs capital, even if the operation is a fairly modest one. When looking to embrace the next phase of the venture, however, it’s often a necessity to gain extra cash. This could be used for upgrading facilities, opening new locations, or starting a new line of products. Either way, waiting until your steady profits can cover those costs isn’t an option.
The world of business doesn’t stop for a second and failure to move forward will see you left behind. An advance in payment via a line of credit agreement can overcome those issues instantly. As long as the extra capital is spent on the right items, it could be the key to quick growth and expansion. This safety net can be priceless during a sales slump too.
Most businesses need to borrow at one stage or another, including multinational corporations. Assuming it is done responsibly, this is nothing to fear. Conversely, trying to survive without money certainly is.
#7. Employee Unhappiness
Staff members are the most valuable asset at your disposal, but it’s not all about their skills. As an employer, you must learn to appreciate the human elements too. After all, if an employee is unhappy, it’s not only their productivity that will suffer. The customer experience will also falter as a direct consequence.
Keeping employees happy is primarily about maintaining good communication. A strong employer-employee bond in which they feel respected will give them another reason to work hard. Moreover, individual happiness should rub off on colleagues to create huge benefits for the entire company.
Being receptive to potential issues an equally important factor. Team building offers a great foundation. Many bosses feel that recreational talk can be a problem. If a little chit chat keeps morale high, though, the overall impacts can be positive.
#8. Staff Shortage
Another staff-related issue revolves around the numbers rather than their work ethic. Illness can strike at any time, and problems like the flu will often spread throughout the team. While you will have human sympathy for those team members, you cannot afford to let this prevent the company from achieving its aims.
With cloud computing in place, it may be possible for some workers to complete their tasks from home. Likewise, outsourcing to companies removes this danger and reduces the management tasks involved. For individual outsourced tasks, freelancer directories are a great alternative.
Prevention is the best form of protection, which is why a clean and safe workplace is advised. Still, the other precautions, along with the number of a reputable temp agency will protect your cause.
#9. No Loyalty
Gaining the initial purchase from a customer is great, but you can’t rely on new clients forever. Building a solid foundation of loyal users is essential for sustained success. The ability to retain their custom is one of the greatest traits of a modern business. Unfortunately, very few possess it.
Customers owe you nothing, so you must give them reasons to keep coming back for more. Special loyalty schemes and offers provide an incentive to spend more money more frequently. Not least when those prizes and promotions make them feel valued. On a similar note, referral schemes that reward them for bringing new clients can be one of your best marketing strategies.
Meanwhile, you must also consider their requirements after the sale. Ending your commitment to the client at the transaction stage will come back to bite you badly. Invest in proper client care and always aim to solve their problems fast. You will not regret it.
#10. Lost Motivation
Running a business requires a lot of time, effort, and passion. In turn, it can be a rather draining experience. When your motivation levels drop, it can impact the entire team, which will also harm the clients. Frankly, you cannot afford to let this become an ongoing issue.
The business is a very important part of your world, but there are more things to life than the company. It’s great to have ambition, but a strong work-life balance is key. Taking regular holidays and breaks to recharge the batteries will preserve your sanity. Besides, coming back with fresh eyes can often help you spot an area of improvement.
Modern tech makes it easy to manage a business from anywhere in the world. As long as you have trustworthy people in senior roles, you’ll be just fine. In addition to a better business, it should create a better personal life too. What more could any entrepreneur ask for?