When you’re so immersed in your day-to-day tasks and issues, you may fail to recognize bigger problems that will come your way. No matter how much we try to stay away from these challenges, they will always come.
Everything is constantly changing so it’s hard to focus on one thing at a time, that’s why it’s also hard to think of a solution to issues as they arise.
So in order to help you focus on what really matters, here are some challenges in business that you need to prepare for to “minimize the casualty”:
1. Finance
Finance is one of the major problems in business. Even if your profit is good, if the expenses and collectibles are draining your cash, then you can still fail in business.
You must have adequate capital and reserve cash to handle obligations and emergencies. Managing your cash is more important during times when income is slow.
The biggest mistake when starting your business is expecting an instantaneous profit. Most starters are so eager to invest everything they have in their business, expecting it to be returned soon. According to experts, you should not expect much profit for at least two years.
However, slow and steady doesn’t always win the race. Just because it’ll take at least two years for you to a make a profit, doesn’t mean that you really have to wait two years without doing anything. If you’re too slow, it’ll take longer before you can make your first income. And just because you’re earning money, doesn’t mean that you’re making profit. You don’t have all the time in the world, so might as well do whatever you can to make money with your business.
2. Integrity
In a place where everyone wants to be successful, the temptation to cut corners, keeping information from the customers and doing whatever it takes to get ahead from everyone else is strong for some. Unfortunately, since a lot of businesses are doing this, it starts to become “normal” to deceive or lie to others.
These affects not only the relationship you have with your customers but also the relationship you have with your team.
Imagine how your employees would feel if they know that they are working for someone without integrity?
They would be unmotivated and productivity would go down. In every relationship, trust is the foundation that holds it all together. So make sure that you gain the trust of the people you work with, or else, you’ll find your business failing soon enough.
3. Competition
It’s not difficult to start a business. You just have to have enough capital and resources.
However, the challenge is STAYING in business. Since it’s easier to start a business, the competition becomes stronger and harder.
You can find a lot of different businesses who have the same products or services that you have. Since consumers have more options now, they are most likely to go for the cheaper one.
So how can you stand out from the competition?
Find what makes you different from the rest and focus on that. Make sure that you provide a great customer experience. Even if your price is a bit higher than the rest, if the customer sees that it’s worth it, then they will stay with you.
4. Marketing
Since there are more options of the same product or service in the marketplace now, how can you market to your potential customers?
Most people are on social media and all over the internet right now. That makes it easier for you to reach them with your message.
You need to figure out where your target customers are constantly staying and what message you need to relay to them in order for them to notice you.
Once you know where they are and what message you need to tell them, allocate a budget to promote your business with the chosen medium. Make sure that you study your marketing strategy well as to not end up losing money on marketing that doesn’t work.
As I’ve said from the point above, stand out from the competition with the thing that makes you different from the rest. Don’t succumb to using the same marketing strategy as the competition and just selling your product for a lesser price.
Just because you’re earning something, doesn’t mean that you’re making a profit. With earning, you just have to consider the money that you get, minus the cost of production.
While in profit, it’s the money you get minus the cost of production and all of the other expenses. So make sure that you are gaining profit.
5. Finding the Right People
This is one of the biggest challenges a business can face – finding the right people and retaining them.
It’s not cheap to hire a new employee because you have to train them and set them up for work.
So make sure that it’s all worth it by hiring the right one.
But how can you find the right one?
By testing them.
Even if their resume is awesome, nothing beats actually seeing them work. But that’s not all. You also have to consider their personality.
What’s the point of hiring a genius who is so toxic that no one will want to work with them?
So in short, two things that you need to look out for are skills and personality.
Once you find someone for your team, treat them with care and respect. Caring not in the way that you would a baby, but in a way that you want them to do their best because you want them to BE the best.
Learn how to deal with the different personalities of your team members and figure out how you can drive them so they can use their full potential.
6. Systemizing and Implementing Plans
Business owners usually end up getting tangled in endless paperwork and other menial tasks that don’t really bring money to the business.
They fail to work on what really matters.
This is why it’s important to set up systems for your business. Systems are there so that you can let go of the small tasks and not worry about them messing up.
Even if they do mess up, you won’t have to spend too much time planning what to do next because it’s already there. Systems save you time.
Determine what tasks need to be systemized and then set them up immediately.
Another challenging thing in business is implementing the plans. It’s easy to create plans, but it’s hard to actually implement them.
Just like it’s easy to say, “I’ll lose weight by exercising three times a week” and then not doing it because it’s painful.
So how can you implement plans? There’s a famous line for it… JUST DO IT.
Don’t forget to measure your plans with KPIs and reward your team when they reach those goals.
Challenges are can be scary. They are there to make you stronger and only the strong survives in the business world. Embrace these challenges by preparing for them and working on it.
