Recent statistics as shown that the success rate of small businesses is abysmal, with 96% of small businesses failing within ten years, and between 70% and 80% of them going under within their first year. Some factors affecting small businesses are poor planning, cash flow, lack of foresight, unfavorable or conflicting government policies, poor marketing skills, seeking rapid growth and so on.
Despite the sad stats and challenges small businesses face, there are still bright spots especially in the utilization of digital tools. The utilization of technology by small business owners has given them more access than before, access to information, resources and audience you need to move your business out of the challenging situation(s).
BELOW ARE SOME CHALLENGES SMALL BUSINESSES FACE AND HOW THEY CAN OVERCOME THEM
GETTING CLIENTS/CUSTOMERS
Challenge: On a safe assumption, owners of small businesses don’t really have enough money to spend on marketing like other bigger companies that’s competing for the same customers. Traditional advertising methods such as print and radio are costly and their effectiveness can’t be really monitored.
Hint: With the advent of digital marketing, advertising is now affordable than ever with online platforms such as Facebook, Twitter, Instagram, News websites and search engines like Google. Amongst the benefits of digital advertising is that you can apply limits according to your budget, you can also target your specific audience that suites your business, this means you get more value for your money.
Another beauty of digital advertising is that you can monitor your ad performance which enables you to optimize it for effectiveness. Despite the benefits of digital advertising as a small business owner, you shouldn’t neglect offline connections such as networking. Networking generates leads and referrals for you.
PAPERWORK
Challenge: Tracking of documents such as quotes, invoices, payments and so on can be time-consuming. Investing in a software would be the best way to go, it helps you manage all paperwork in a single interphase that could be accessed anytime, anywhere.
Hint: Investing in software such as Sage, helps handle all paperwork in an interphase which can be assessed through your mobile phone, this saves you time and lets you focus on other relevant issues. With Sage software, you can professionally write quotes and send them to potential clients while also sending invoices and track receivables seamlessly.
HIRING THE RIGHT TEAM
Challenge: As your business grows, you’d need to employ more hands that fits into your company’s culture. Finding the right persons that fit into the company’s culture and also willing to earn lesser than their peers in larger companies is challenging in itself. Your employees can make or mar your company.
Hint: Another benefit of networking comes into play, tap into your network and tell them what you want, they’d be the ones to find who suits your want. This in turn saves you cost on advertising and recruitment agencies. While qualifications matter, attitude and determination are everything. Hire people who are passionate about being part of the growth of the business.
MASTERING THE ART OF BEING AN UTILITY PLAYER
Challenge: As a small business owner, you should be prepared to serve in different capacities you never envisaged, whether it is acting as the CEO, Accountant, Marketer, Technical man and so on. This might do the trick for a while but you should know this can’t sustain the business, hiring the right people is the way to go but you should know it doesn’t come cheap.
Hint: Outsourcing and freelancing to small agencies and freelancers that are familiar with your industry and have experience working with small businesses is the way to go. Not only are they affordable than full time staff, they provide you with advice and a fresh perspective on things. This in turn reduces your workload and gives more time on innovating and developing products.
Running a business is no small task. But by being smart with your time and resources, you can survive the first challenging year and make it to the exciting growth years.
REFERENCE: Sage South Africa,
INSPIRED BY: Keir Thomas-Bryant
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