Top 7 Challenges Businesses Face Today
Seven of the biggest challenges that businesses face and how to overcome them...
While it may seem that the storm that was the UK recession may have passed, it unfortunately has left an uncertain and unprecedented future for the UK business marketplace. Businesses today are still facing a large number of challenges as they lay down plans to move foward.
No matter if you’re a one-man band or a multi-national organisation, every business faces similar challenges in their day-to-day running. So what are these challenges? We’ve put together seven…
The current economic climate is something current business owners have not experienced before so many are unsure as to how to push their business forward without the guarantee of a stable future. Business growth and continuity stems from business owners being able to plan long-term and develop these plans over a period of time, but this is harder to do because of the lack of guarantee as to the state of the economy over the next couple of years.
Unfortunately, it’s impossible for us to bring certainty back to the economy, but it’s important that businesses still build a strategic long-term plan so that they have a clear vision as to how they want to progress. Having a plan in place will let you look to the future and help you to build your business value. No matter how rocky the business landscape may look having a plan in place will let you overcome challenges easier.
It’s also important to keep track of how your business is progressing, keep a monthly record of your output to ensure that you know where you’re at, letting you analyse how your business is doing letting you work out a more structured plan and helping you to carve out a more certain future.
Attracting new business
In January of this year, attracting new business was found to be the biggest challenge that organisations are facing. Again because of the rocky economy, fewer people and businesses are looking to spend their money, meaning that the market for drawing in new custom has shrunk.
Both customer retention and building up your customer base all stems from your customer treatment, showing them that you care through the service you provide. The marketplace is rife with businesses fighting for any new custom, so it’s up to you to make sure that your business image is the best in can be in order to compete.
Financing the enterprise
Whenever there are issues with the economy, it is guaranteed that there will be a knock-on effect for both personal and business finances. With limited funding help available, and the schemes that are available being extremely hard to secure due to lenders being risk-averse, many businesses have struggled to manage their cashflow successfully and keep their heads above water.
Knowing your means is key here, overspending to any degree could be detrimental to your business. Staying in control of your finances in fundamental, if your cashflow is limited you need to keep on top of it – remember Cash is King.
Competition to your business
While it’s good that the country seems to be recovering from the economic troubles, it also means that more and more businesses are being set up, bringing more competition to the table. This means that businesses must not get complacent – while your marketing strategy and advertising tactics may have worked for you in the past, the market have changed and you need to keep on top of the developments.
Taking a step back from your business and reviewing both your setup and plan as well as looking at your competition will help you to take control and build a business image ready to take on the new marketplace.
Recruitment: Finding the right talent
Despite record unemployment figures, it has become increasingly difficult for businesses to recruit and maintain quality employees. Being able to find talented individuals with the right skill set is key for businesses wanting to grow is just the first step, businesses need to provide a working environment that is desirable in order to retain talent.
You may feel that because of a limited cashflow meaning you’re unable to offer high wages, you’re unable to attract the right kind of candidate suitable for your business. This is where you’re wrong, simply offering your employees a workplace where they feel valued and supported will attract decent candidates. Rewarding staff, offering flexible working hours and holidays is more likely to get applicants than high wages and a regimented working environment.
Technology and keeping up with it
Technology is everywhere these days and it is one of the things that is vital for any business to stay at the forefront of – but how are businesses expected to keep up with the speed at which new developments are occurring.
Unless you have a huge cashflow, it’s unlikely that you’ll be able to constantly upgrade your business technology but there are ways and means around this. Keeping up with the technological developments that effect your business sector will enable you to plan ahead and fit the developments into your business plan, helping you to make informed decisions about if and when to purchase or upgrade to benefit your business and your customers.
Balancing quality with growth
Business growth is part of every business plan, but it’s also important to remember that success is too – so it is important that the growth is managed well enough to ensure that success prevails. Ensure your business plan is up to scratch with realistic predictions about how your business will grow to enable you to support it on its journey. Options for unexpected growth should also be considered to ensure that you’re prepared, just in case.
If your business does begin to grow quicker than expected or beyond expectations, it is important that you keep on top of it. Unmanaged growth could lead to detrimental effects on the business, so realistic goals with consideration as to how to deal with all other possibilities are vital.
This Top 7 Challenges business advice article was written by Katherine Evans, PR & Marketing Executive at 08Direct.