Ways Your Small Business Could Be Failing
Every small business owner knows the struggles of starting their own company, and with 80% of startups failing in the first 18 months it can be difficult to break through that initial barrier. If your business is struggling or isn’t growing as fast as you would like, there are many things you can do to help bring about positive change. Below are four of the most common ways that a business can struggle, and how you can remedy them to ensure profitability and growth for your company.
The silent killer that slowly but surely chips away at your profit margin: Costs. Whether it be your utilities, your materials or your staff, they are an unavoidable part of your budget. But just because they are necessary doesn’t mean you should be paying over the odds for them. Search around for a cheaper alternative, and then use this as bargaining power with your current supplier. Most of the time they will try at the very least to match the price quoted by their competitors, some may even offer you an even better deal. If they cannot move on the price, you already know where to take your custom to get a cheaper deal. Staffing costs can take a heavy toll on your profit too. Think carefully before taking on new staff, do you really need them, and will they be contributing more to the profit of the business than their wages costs? If you do need them, consider utilizing an outsourcing service. These can be much more cost-effective than hiring staff and can get the job done much quicker sometimes too.
Organization and efficiency
Think of your business as the engine in your car. Your engine might have a quoted power of 500 bhp, but if the engine does not get the fuel into the cylinders and ignite it at the correct time, it won’t work efficiently and that 500 bhp will be nothing more than a dream. The quoted power is your business’s potential. You need to ensure that your business is well organized and efficient to get the most out of it. To some people, being highly organized comes naturally, to others it doesn’t. If you fall into the second group, it might be worth getting some training to help optimize your business growth. You could attend seminars or even study online for an mba organizational management to help hone those skills. Whichever way you choose to learn, the important thing is that you know how to run your business effectively, helping you to reach that 500 bhp potential.
Your online presence is what brings customers in, even if you run a brick and mortar business that relies on customers physically coming into the store. You need people to know about you, and you need them to find your business first when they search. Utilizing a good SEO company can help increase your online footprint, helping you to keep your hit rate up on your website. Speaking of which, make sure your website is helping you, not hindering you. Is it easy to navigate? Is it inviting? Do people know what you do and what you offer as soon as they see it? If the answer to any of these questions is no, then you might do well to hire a professional web designer. Or you could use one of the many services that helps you design your own ergonomically design web page.
You might be getting over a hundred customers a day; you may even be getting more. But the real question is how many of them are coming back? Customer loyalty is what helps build brands up. If you can get a decent sized percentage of your customers to keep coming back to you, they’re far more likely to recommend you to their friends and family, meaning that you are far more likely to get an increase in sales. If you devote your efforts to keeping your current customers happy, they will bring increased growth and business to you. If you are constantly chasing new business and leaving your current clients feeling unappreciated and ignored, they will leave. Be like a farmer, cultivating the field to provide all the necessary nutrients for a bountiful harvest.
Hopefully, these tips have given you a bit of useful advice to help keep your business growth and success as high as possible. The key is to spot the problem before it becomes a problem. Be adaptable in your approach and keep yourself abreast of any changes in the industry which could benefit you.