Starting a business is not really as big a deal as it is to maintain it. But for new businesses, trying to break even and soar above zero profit is something to think about. The difficulties common with new businesses are not unique problems but are normalities perhaps to be expected for any organization that’s fresh to the game. Here’s our list of the top 6 difficulties a new business may encounter:
Cash management issues come in various forms and top most lists of entrepreneurial woes. Financial problems are obvious with new businesses as most of the capital has been ploughed into starting-up and more is needed to maintain the day-to-day running even without the feasibility of making profits yet. There are money management tools and software to help you create budgets, pay bills, bill clients and manage cash flow.
Businesses thrive around an increasing clientele base. This is why finding and keeping new clients is one skill that new businesses need. Potential clients are not always open to new businesses as they prefer tried and trusted ones so you need to be a solution provider or a problem solver, and a unique one at that! You also need to make the best of every opportunity to reach out to a client and be ready to impress every time!
There’s so much excitement centred on entrepreneurship and starting a new business that sometimes there are no proper plans for the long-term basis. A business plan should have its goals and missions well defined with room for adjustments and improvements as the business makes progress. Proper planning allows businesses to have a sense of focus, direction and alignment and will guide every decision making process.
Time management skills are crucial. There’s no rule that says only big corporations need to be time conscious. Have schedules laid out in advance that every team member can fit into to ensure efficiency and accountability. Projects to be undertaken should be planned in advance. There are calendars and planners to help check if you are in line with schedules and this will save you from emergency situations that can be embarrassing or costly.
A marketing plan should clearly state how you intend to sell your business and what it offers to both clients and investors alike. It should have details about your target market, your competitive edge, product pricing, budget allocation for advertising and the platforms for advertisements. You don’t stop marketing, you just change strategies.
There are already established businesses that seemingly own the market with a natural edge based on experience, power of bulk purchasing, discounts and overheads. The competition should not limit you but challenge you to climb the progress ladder. By leveraging on the advantages of being a new business, especially building relationships with your team members and clients that are geared towards efficient service delivery, you’ll become the competition in good time.
At Connect Communications we have been able to help new businesses find a solid footing by reducing the costs associated with reception duties and call answering. We can help you overcome the difficulties at the initial phase of your business and give you the edge you desire. Call us today to see how we could help your business, no matter how old or new it is, and take advantage of our 30 day free trial.