People often say that the things you don’t know can’t hurt you. This philosophy may apply to certain areas of life but is far from helpful in the business world. As any entrepreneur knows, running a business isn’t easy. Things go wrong all the time, but, as long as you know about the issues in question, you can do something to resolve them. The biggest trouble is caused by the problems you don’t know exist. These can blindside any entrepreneur, causing chaos. With that in mind, here are ten problems in your business you might not be aware of.
1. Undesirable Business Location
When you own a brick-and-mortar business, there is always a chance that the location of that business isn’t a desirable one. If you’re located in an unappealing or inaccessible area, then this will cause problems, especially when you depend on drive-by or pedestrian foot traffic. Although this might seem obvious, many entrepreneurs fail to realize that the location itself could be the cause of all the trouble. When this is the case, relocating the business is often the best solution.
2. Poorly Priced Products
Many different factors determine whether a customer buys your product. However, one of the most significant will always be the price. After all, if your target market can’t afford to buy what you have to sell, then nothing is going to make them. However, that doesn’t mean that you should sell your goods for next to nothing. This is just as damaging to your company, as you’ll struggle to make a profit. Instead, conduct research to find a price that works for everyone.
3. Outdated Marketing Strategy
Marketing has significantly changed over the past few years. The tactics that worked well only a decade ago are now seen as outdated, while no business, big or small, can live without social media. If your key marketing tactics revolve around flyers and posters, then you’re holding your business back. Other marketing options, like online marketing, are much more effective. That being said, digital marketing practices do change quickly, so outsourcing the work is helpful.
4. Bad Website Design
In almost every industry, customers use the internet when making buying decisions. They tend to research specific services, goods, and stores before they decide whom to do business with. Because of this, your website must be easy to locate and highly visible. It should also offer useful information to prospective customers and project the right image of your brand. A bad website design will do none of this and instead put customers off your business if they can even find it.
5. Little Cyber Security
When most entrepreneurs consider the risks their businesses face, they immediately imagine thieves and vandals. The problem is, while these risks are real and significant, they’re not all that you need to worry about. Cybercriminals also pose a threat. Although it may seem a problem for the movies, hackers can and will get a hold of your data if you’re not careful. Thankfully, with strong passwords, firewalls, and antivirus software, you can defend your business.
6. Unmotivated Sales Department
You can’t assume that your employees have the same work ethic that you do. While it would be helpful if they did, this often isn’t the case. When sales staff isn’t putting the work in, sales tend to drop. This results in less profit and sometimes even a loss. To keep team motivated, you must make it clear what you expect of them. You can do this by setting clear targets and monitoring their activity. It’s also important that you reward those that do work hard and meet their goals.
7. Slow Payment Collections
A hardworking sales department is useless if you don’t collect payments on time. Instead of allowing customers to make payments late, you must put deterrents in place to prevent it. Establishing a late payment fee, for example, is usually enough motivation to make customers pay you on time. You might also want to offer rewards, like a small discount, to those that pay earlier than they need to. This can help when you’re struggling with cash flow problems.
Meanwhile, internet banking has the potential to enhance payment collection operations dramatically. You may provide your consumers with a quick and efficient payment option using Internet banking solutions provided by service providers like Evolve Bank and Trust. As a business, by providing secure digital payment channels, you can reduce your dependency on traditional paper-based methods, such as cheques or cash, which can be time-consuming and prone to mistakes.
8. No Customer Retention
As important as customer acquisition may be, you can’t afford to forget about customer retention. Retaining a customer, both in terms of marketing effort and sales, is far less expensive than acquiring a new one. You’ll also find it much easier to upsell to a current customer, as they know the quality of your goods or service. For this reason, you must focus a little more on making existing customers happy. Giving great service and loyalty rewards both go a long way.
9. Too Many Hires
Trying to do everything yourself is a mistake many new entrepreneurs make. You need help running a business, or you’ll find yourself burning out. That being said, you can’t hire too many employees too quickly. While this might seem a sensible decision when work is piling up, it can cost you in a big way, especially if you’re not investing enough time into the hiring process. If you can keep costs lower by sticking to outsourcing work, then do so.
10. Unreliable Business Advice
When you’re first starting out, you may not know too much about how the business world works. In those first few months and years, you rely massively on those you think can help. You might speak to other entrepreneurs, hire an advisor, or find yourself a mentor. Although these people can offer some great advice, not all of it is going to be accurate. Rather than blindly following everything that you’re told to do, you should conduct further research and trust your gut.
Some of the biggest company killers are obvious to everyone. They’re the issues that make headline news and write cautionary tales. However, the hidden problems often cause the most damage. Hopefully, with the advice above, you can address these issues in your own business.
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