5 Biggest Challenges Of Small Businesses

Regardless of the industry, starting a business is a huge achievement for many entrepreneurs, but maintaining one is the bigger challenge.

According to data derived from the U.SBureau of Labor Statistics, about 20%of small businesses falter by the end of their first year, 50%by the fifth year, then the number rises to 80%in the tenth year. Analyzing these survival rates, we can better comprehend why the first few years of running a business are usually faced with trepidation. However, it is reassuring to believe that typical business challenges are redeemable and sometimes, avoidable.

There are many standard challenges every business faces, whether they are large or small. These include hiring the right people, building a brand, developing a customer base, etc. However, there are some that are strictly small business problems, ones most large companies grew out of long ago.

Below are the biggest challenges that may be faced by small businesses, along with some tips that may help business owners and managers fix them.

Fi n d i n g Cu s t o m e r s

This challenge is actually a general challenge faced by both small-scale and large-scale businesses. However, the challenge is more significant for small businesses. It arouses some questions in one?s mind- how can customers be found when the business is barely known?And how to know what to prioritize.

To add to this, acquiring customers can be expensive and not all small businesses have the spending power.

As a business owner, start finding customers by first figuring who your ideal customer is, then start creating content that caters specifically to their needs. This content can be shared in the channels you know they are based on.

In c r e a s i n g B r a n d Aw a r e n e s s

Statistics prove that in terms of success, 70%of brand managers conclude that building an audience is more valuable than direct sales and for this reason the new age marketers channel effort in building brand awareness.

You can spread brand awareness through public relations, co-marketing, and blogging. Blogging might be a neglected niche for some businesses, but it does help drive traffic to your website, it also enables you to establish authority in your industry and trust among your prospects.

B u i l d i n g a n Em a i l L i s t

Email marketing is rated as one of the most effective marketing channels. To move prospects along the buyer?s journey to eventually become your customer, you need to build trust through consistent nurturing, staying top of mind, and continuously providing value. This can be achieved by getting prospects on your email list. Consider opt-in lists, instead of buying or renting lists. This will give you access to customers that are more likely to make purchases.

L e a d Ge n e r a t i o n

This accounts for 58%of challenges that business leaders face and this is a priority, since generating enough leads boost sales. A successful lead-generating engine converts website visitors into prospective customers and provides customers and provides a steady stream of sales prospects.

For an effective lead generation process, you need to optimize your existing website for conversions. You can also take advantage of free lead management software and apps for startups. De l i g h t i n g Cu s t o m e r s

It is important not to mistake customer satisfaction for customer delight. They are both connected in the sense that

customer satisfaction leads to customer delight, but not the other way round.

Unfortunately, it can be difficult sometimes for small businesses to delight customers as you may be lacking a sufficient service team that will solve customer?s issues. Also, lacking sufficient capital can make it challenging to create programs customers will enjoy.

Some steps that can help combat this challenge includes, setting concrete expectations at the start of the customer engagement, delivering on those expectations, and innovating ways you can provide unexpected extras that go above and beyond,

To conclude, the problems faced by small businesses are considerable, and one of the worst things a would-be owner can do is to go into business without considering the challenges ahead. On the other hand, a competitive drive is often one of the reasons people start their own business, and every challenge represents another opportunity to compete.