Every start-up has its inherent challenges and drawbacks. However, the business owner must overcome these challenges with skill and diligence. Here are some problems along with their easy solutions:
1. Inadequate Cash Flow
The first and most common hurdle that a small company experiences is an inadequate flow of cash. According to several studies, almost 40% of start-ups fail due to poor cash flow in their firm. But there is the solution for every problem, so here are some ideas that will help you to have better cash flow in your company:
- Create a budget
- Look for Investors
- Track Expenses
With these three important steps, you can optimize your cash flow considerably. Understanding why and how you have spent the money will allow you to get an insight into how you might be able to overcome bad cash flow. Introspection can be useful for the finances of your company.
2. Scanty Leadership
Leading, bearing the torch, and motivating others are not the only attributes of a leader. A leader must know how to lead and encourage others to follow. There are many instances when you would see a company fail due to a bad leader, so here are traits that will help you to be a good leader.
- Integrity
- Self-Awareness
- Empathy
- Communication
- Active Listening
- Patience
- Optimistic
- Decision-Making
- Transparent
- Motivational
There is a very thin line that can create a leader to a monarch, and none should cross that line. Even good leaders might come across as dictators if they fail to incorporate the aforementioned qualities in the way they handle themselves. It will be wise to be unbiased when you are handling a small business or a developing one.
3. Disconnected Employees
With bad leadership in an organization, employee disengagement is bound to happen. Bad leadership is disheartening for employees, and not just that detached employees might be a result of many other things at a workplace. Here are some ideas that will surely increase employee satisfaction in the company:
- Goal Oriented
- Reward & Recognition
- Learning & Development
- Communication
- Work-life balance
An organization is a collective gesture of various aspects and as a management person, you might want these ideas to be incorporated in your organization. This will increase the productivity of your employees and also it will encourage them to work harder.
4. Poor Business Planning
A business can die due to less or no proper business planning. But if you vouch for a good business plan then everything might work on your behalf making it a success for you and also for your personal. Here are some ideas:
- Outline the goal and objectives of your business
- Classify Demographics of Potential Customers
- Address the Problems of your organization
- Plan Nuanced Revenue Streams
Work on a comprehensive business plan and get your direction clear, to make it up to the pinnacle of your business sector. “Working together to get the job done”, so be like Bob the Builder to complete your task on time.
5. Poor Marketing
Another drawback of small businesses is that they don’t consider marketing. But, marketing can be extremely easy on the pockets if you know how to do it properly. So, here are some options:
- Press Releases
- Social Media
- Email Marketing
- Video Marketing
If you learn about these marketing options you will see that you can market a lot about your company without spending a fortune on it.
How to Learn About Competition? Here are some options that will help you to learn about your competitions:
- Local business directories
- Local Chamber of Commerce
- Advertisements
- Press Releases
- Exhibitions and Regional Trade Fairs
- Questionnaires
- Search Similar Products and Services Online
- Information Shared by Customers
- Flyers
- Similar Patented Product
Know your competitions, learn about cheap but successful ways to market your business, and write the day one of your success with silver-lining.
