Long-term success comes through hard work and the path towards achieving consistent growth has tons of obstacles. As you expand your business, you will get new opportunities for your company but, you need to anticipate the hurdles that you may face as you progress further and get prepared for it.
Every day dozens of companies sprout up and they might prove to be a threat to your organization. You will need to stay relevant to the market demands to make your place in the hearts of your customers and clients but the journey towards success isn’t as easy as it seems.
Here are 10 challenges that your business might encounter and quick solutions on how to tackle them.
Scheduling interviews to hire the right candidates
Scheduling job interviews amidst a packed schedule is dreadful for entrepreneurs. Matching the work schedules of each interview panelist and then scheduling interviews is also a big problem in the recruitment process. The hiring process takes several weeks, from reviewing resumes to scheduling multiple interview rounds for qualified candidates. Then, if you do not offer an attractive package, you will risk losing the best fit for your organization.
Solution: While crafting job ads, mention the qualifications and years of experience a candidate must have. Mandatorily specify the day-to-day job duties, work hours, additional benefits, and wages. Cut short the interview process by asking the candidates to take up a skill assessment test. It will ensure that you get to interview the best of the lot without wasting time and resources. If you cannot organize skill assessment tests, seek genuine references from previous employers, professors, and mentors to understand the candidate’s potential and work ethics.
The problem of task delegation to employees
In contrast to large organizations, small business owners frequently need to get their hands on specific decisions such as task delegation. But, large businesses have numerous people designated as decision-makers, namely the team leaders and reporting managers. However, strategic planning of projects and tasks starts with the delegation of tasks to people who are experts in separate departments.
Solution: Small business entrepreneurs sometimes risk doing all things alone and then feel anxious about missing deadlines. They need to understand the importance of delegating tasks and trust their reporting managers and team leaders with decision-making and project monitoring. But, they must also ensure not to overburden the team leaders and offer help whenever needed.
Facing new competitions every day
Every business faces new competitors as they grow in their respective markets, and dealing with them is one of the core aspects of a business. As an entrepreneur, you need to strategize plans to retain your existing clients and customers and attract new ones. However, some firms often try to copy their competitors and, as a result, lose their uniqueness which makes them just another company selling similar products/services.
Solution: Be prepared to face the real challenges brought up by your new and existing competitors. If you are a small business owner, try to offer more in the beginning and as you develop, find your niche. If you run a big or mid-sized business, focus on your strengths and communicate to clients and customers about your unique value propositions.
Meeting the demands of a diverse customer base
A business that fails to comply with the changing customer demands might turn obsolete. Not upgrading your services or expanding your product lines is fatal for your company’s survival in the market. You can only increase revenue if you provide products/services that are at par with your competitors. So, how do you ensure that your business does not go out of the minds of your customers?
Solution: The best way to start is by conducting a market survey to understand the current demands of your customers. Find out what they like about your products and what they don’t. Determine how they would rate your services. You may conduct an online or an offline survey based on your budget. Collect and analyze those data and discuss with your marketing team how to strengthen customer relationships.
Losing control over expenses and delayed payments
Many small and medium-sized enterprises struggle with cash flow management. They often lose control over their investments in business growth, which may be catastrophic. Sometimes customers and clients delay payments even after you have completed the task and sent them an invoice. When this happens, you often pay your employees or contractors from your pockets.
Solution: Planning your business strategies and proper budgeting will help entrepreneurs manage their cash flow. Determine new opportunities for completing projects within the budget. You will need to negotiate payment terms with your clients, partners, and vendors, especially if you have a tight budget. You can ask for a down payment from them to cover the expenses associated with the project. If you have limited resources, never be overambitious with your projects. Stand your ground and save funds for critical times ahead. Also, send faster invoices to clients and customers. Most companies raise instant invoices via online appointment scheduling software like Picktime, and your customers and clients can make payments from their mobile phones in a click!
Keeping a check on your supply chain
A well-functioning supply chain is essential for a company’s daily operations. Growing your business means you have to increase your stocks to meet the demands of your customers without fail.
Solution: You have to be foresighted and make medium and long-term sales forecasts. Constantly monitor your supply chain and keep preparing for how these estimations could affect your supply chain. You must stay in touch with a wide and varied network of suppliers to ensure that you always have an alternative partner to rely on and do not run out of resources.
Stocking products in the inventory
If you are a product-based company, you are bound to receive orders all day at any hour, and not having enough stock at crucial times will irritate your customers, and you may be labeled “slow” and “unreliable”. As a result, you could lose your valuable customers to competitors! But on the other hand, overstocking will reduce your valuable funds.
Solution: Having a pre-planned inventory management solution will help you connect your inventory data with your financial data. It will also help you to stock products according to their necessity.
Maintaining compliance responsibilities
A company’s compliance obligations increase many folds when they expand their workforce. They have to try to meet with existing and new regulations and legalities. Companies also need to meet quality standards and environmental standards. Take, for example, the General Data Protection Regulation (GDPR) Compliance Act, which has magnified the level of compliance tasks for companies bound to follow them.
Solution: Make your employees aware of the company’s regulatory demands and their significance. Research well on how you can be compliant with the latest regulations.
Best strategies and plans might fail to make the cut
No matter how hard your sales and marketing team tries, even your best plans might unexpectedly fail due to circumstances. All your product lines might not be popular, some of your services might be faulty and need an upgrade. As an entrepreneur, you have to train yourself to accept failures and learn from them.
Solution: Think practically. Come to terms with the fact that not all your projects will work the way you planned them. It is always advisable to have multiple plans and strategies for the project so that if one of them fails, you can quickly switch to the other.
Developing a good company culture
Employees are the face of the firm, and they are a decisive element in keeping an organization’s reputation and culture intact. As companies expand, it endangers the company culture. Grapevine communication and gossips arising from employee discontent must be controlled and curbed by large corporations.
Solution: Never put your staff under too much pressure. If the situation demands working overtime, make sure to provide them with additional compensation. Hire people who understand your company values.
Follow these 10 tips to overcome business challenges. However, there may be thousands of other problems that might arise at any moment. Recognize the typical pitfalls in business growth for consistent positive development. is essential if your business is to continue to grow and thrive. Try, learn, and strategize- remember that these three words are the main mantras for making most of the opportunities coming your way.
