Are you an entrepreneur that has begun a new journey? Congratulations and welcome to the transmuting market! We understand that the path you might have crossed to reach even this point hadn’t been easier. Furthermore, driving business growth would be your ultimate goal, which again is not a cakewalk. You will come across innumerable challenges that may involve different problems and opportunities, demanding unique approach all the time.
More often, some avoidable mistakes turn out to be a nightmare for your business, such as messy accounting books, improper management of resources, and a lot more. Being an entrepreneur, recognizing and overcoming the pitfalls should be your primary concern to stay ahead in the market. That’s the reason you should ensure that steps or strategies that you implement today do not create additional problems for you in the future.
Here in this article, we’ve outlined top challenges that businesses face while driving growth and ways to avoid them:
1. Work culture
To thrive in the global market, it is crucial that you maintain a good work culture in your business. No matter whether you have a large business or small, treating your employees as employees will take your business to great heights. Top brands that are ruling the market ensure that their employees are motivated and rewarded, so that they should not be affected by any unhealthy act.
Maintaining the company’s culture will not help you attract new talents, but also enable you to retain the existing employee base. Work culture greatly plays a pivotal role in the company’s internal as well as external growth.
Advice: Take care of your employees in the right manner, and see how they will take care of your clients, driving overall business growth.
2. Cash flow management
When you’re into the business, you measure your profits through numbers. Therefore, your numbers should be accurate as hell. This is where cash flow comes into play. Entrepreneurs should keep a hawk-eye on their money flow. If your cash flow is negative, you will soon face financial crises. If you want to avoid this scenario in your business life cycle start checking your numbers. In case, if you belong to non-accounting background, then this process might seem complicated to you as you don’t know the basics. As a business owner, you’ve to wear several hats, so acquiring basic knowledge of your business accounts will help you significantly.
Advice: You can opt for business accounting services and delegate cash flow management task to their team, enabling you to save cost and time.
3. Balance quality and growth
Many businesses find balancing quality and growth their number one challenge, especially the ones, which are growing at a faster pace. Initially, when you start your journey, you have a handful of people for managing business operations, and they work day night to provide you with better results. But with the time, when your business starts moving towards growth, new roles are generated- marketing, support, administration, development. As the recruiters begin to hunt talents for different job roles, you could experience a separation between the quality and growth across different team members.
Advice: It is essential to stay grounded and innovative to survive and thrive in the agile market.
4. Measure the performance of your business
Have you heard these adages, “What gets measured, gets done” and “You get what you measure”? Well, these adages explain the importance of measuring business performance to stay aligned with the changing business environment. Every year you might be developing new strategies, setting objectives to meet the goal. But are they actually working? How will you recognize this?
By simply measuring business performance with the right KPIs, for which you can spend a few hours to set the key metrics. Measuring your business performance will allow you to develop better strategies, be it concerning the marketing of your company or accounting or operations. You will excel in every aspect!
Advice: Sit with your internal team and set the key metrics in order to measure the performance and achieve success.
5. Tax payments and schemes
Tax season can be a struggling period for every business, whether you’re an established business or a startup. The only way to make your tax season hassle-free is preparing your taxes in a timely manner. Procrastinating accounting and bookkeeping functions will surely give you migraine issues during the process. Keep your books sorted and organized and stay updated with changing tax system and laws. This will help you avoid the knock of IRS on your door, saving you from unnecessary penalties and charges. You should also be aware of different tax laws so that you can derive better returns on tax deduction.
Advice- Hire business accountant that can help you make your tax season seamless and stress-free.
6. Business plan
Starting a business relies on a business plan. “A goal without a plan is a wish,” and many businesses forget this fact or maybe they have a plan, but they didn’t cover up all the bases. Wondering marketing, sales, staffing, skills shortage, and funding are afterthoughts, will take your business towards darkness. All these factors should be an inevitable part of your business right from the beginning. Besides this, you should also plan for things you can’t plan for, which means if you can’t prepare for every eventuality, you should be mindful about steps that you’ll take when your business takes an unexpected turn.
Advice: Planning is key to success for every business as it enables you to adhere to your business goal.
7. Handling complaints
Businesses often face complaints from their customers, and handling complaints with patience can significantly benefit your business. Never forget that a complaining customer can be your best opportunity to show how good you are and create a customer evangelist. That’s the reason you must have the right team in your business to handle complaints and improve your products and services accordingly. This will not only make your customers feel important and contented but will also enhance the reputation of your growing business in the agile market.
Advice: Complaints should be a primary concern as it is the only way to serve better and stay consistent with your customers.
8. Lack of technology
New businesses often neglect the need to invest in technology, thinking it is not necessary for the initial stage. According to experts, this is the major reason for small business falter. Technology is playing a vital role in today’s modern world. You could see your half client base evolving with new gadgets and tools. In order to meet the expectations of tech-savvy customers, adopting new technologies can immensely help you drive profit. For instance, to manage accounting books, you can opt for accounting software such as Quick Books, Sage, Net Suite, etc. It will not only make the numbers accurate but also give you ample of time on core business activities.
Every business wants growth. Many businesses consider growth as a metric to measure business success. But proliferating can cause too many problems and growing too slow can throw you out of the market. It is crucial to be smart enough by staying consistent and aligned with your business objectives and drive growth.