How to Overcome 5 Common Business Challenges | Fora Financial Blog
How to Overcome Five Common Business Challenges
January 15, 2018
How to Overcome Five Common Business Challenges

How to Overcome Five Common Business Challenges

Sustaining growth and profitability while simultaneously managing marketing campaigns, maintaining day-to-day administrative tasks, and ensuring a high-quality customer experience can be difficult for any company, let alone a small business. Fortunately, modern technology and strategies can significantly improve workforce productivity.

Previously, SMB Group identified the most pressing concerns for small business owners last year. Focusing on the top five challenges, we have used advice from Sage and other sources to outline essential strategies to keep your small business profitable and coping with ever-changing market demands.

1. Attracting new customers

Most business owners understand their target market. Yet, with so many marketing options – from traditional media – like radio and billboards, to social media promotion campaigns – it can be a struggle to understand how to advertise a business, and in-turn attract more customers.

To start, examine what your competitors are doing. They have done the research and learned the advertising methods which give them the biggest return on investment, so use their techniques to access the same customers.

Getting patrons to your store or website is only half the battle. You need them to stay and consider making a purchase. Customers want convenience and accessibility, with more preferring to be able to contact business owners with queries via social media. To offer your customers this convenience, ensure that your business has a profile on major social media platforms, like Facebook and Twitter. In addition, you should make sure that your website is responsive and user-friendly for different devices, while utilizing your business’s branding to help accentuate the customer experience. We also suggest that you register for any relevant business directories, so that customers can find your contact information there, too.

2. Growing revenue

One of the dangers small businesses face is that they don’t have the manpower or the capital to invest in alternative ventures as a means of expanding their income. Instead of focusing on one venture, consider how partnerships can give your business new opportunities.

Partnering with non-competitive businesses with whom you share a target market allows you to organize a profitable arrangement without much additional investment. For instance, remember when Starbucks partnered with Spotify? With each company offering their customers points for the other’s services with every purchase, both businesses saw their loyalty memberships grow. If your business can find a promising partnership, you might be surprised at how much your sales sky rocket.

3. Maintaining profitability

Sustaining success requires an understanding of current market trends and technologies which might serve to reduce costs, improve productivity, or increase client engagement. Unfortunately, it can be challenging to predict which trends will emerge and affect these factors.

Despite free material being available in blogs, podcasts and web articles, there is too much information for one person to consume. Instead, business owners should instruct their teams to research upcoming trends. Instead, business owners should have their teams research upcoming trends. Instruct employees to regularly investigate specific business strategies, competitor movements, or automated technologies, and report back regularly. By doing this, you can take advantage of the latest trends that will enable you to sustain profitability.

4. Improving cash flow

Many business owners struggle to responsibly manage their cash flow, which can negatively affect the future of their operations. Luckily, smart applications are becoming cheaper and more accessible to businesses, making financial management much easier.

For example, Pegg is a chatbot that allows you to record expenses in real-time. Instead of keeping paper receipts, you can manage your finances through the Pegg chatbot. Plus, the more that you use the application, you’ll receive recommendations for your business.

To discover more financial management tools, check out this list.

5. Improving customer experience and retention

Repeat customers are essential to the long-term success of a business. As many as 61 percent of small businesses receive more than half their revenue from repeat customers. Thus, if you can’t earn consistent business from repeat customers, your business’s future could be in jeopardy.

Again, utilizing technology can come in handy here. To improve customer service, there are numerous ways that you can use technology to your advantage. Implement a CRM software, where you log customer complaints, utilize social media to respond to customer questions, or create a user-friendly app. By giving your customers ample options to connect with you, you’ll increase future retention rates.

Next Steps

Running a small business can be incredibly demanding, but if you’re strategic in tackling these challenges, you’ll be able to overcome them. If you have other suggestions for handling common business challenges, we want to hear from you! Let us know in the comment section below.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].