Running a business can be extremely challenging, and the obstacles that you face should not stop you from growing. Challenges are an important part of your business, and ultimately, will enable you to grow. By identifying problems, analyzing them, and coming up with a solution, you will make new opportunities for your business. This will put you ahead of your competitors, and show your customers that you are resilient and credible.
How do businesses deal with challenges?
When your business faces challenges, you must have a strategy ready to help you face them efficiently. You should always start by checking you are looking at the right problem, and take a contextual approach. This will enable you to view the problem from the right perspective. Using this information, you should define the problem and create a plan to move forward that utilizes your team’s strengths, and identifies any areas that you may need to outsource or delegate. Keep moving forward to solve the problem at hand, and seek support and innovation where appropriate.
Top challenges that businesses face that hinder growth
Unfortunately, when you run a business, you are going to face a variety of different challenges. Here are some of the most common factors that hinder a business’s growth:
#1 Doing too much without support
When running your own business, it is easy to take on too much without any support, especially if you are a perfectionist. It is difficult to let go of control, but if you take on too much in your business, it can hinder its growth. At the beginning of any new business, taking on more than one role may be necessary. But this shouldn’t last long. Instead, you should see where your strengths lie, and what you need to start delegating, outsourcing or looking for software that can complete the task. This will free up your time to grow the business, and tasks can still be completed to a high standard without wasting effort or energy. These may be tasks such as administration, accounting, marketing, and IT.
#2 Not engaged with your customers
Your customers are the heart of your business. Without them, you won’t survive, let alone grow. You likely conducted research at the beginning of your business venture to understand your customer’s needs, problems, and desires, to effectively create and market your products and services. Where many businesses go wrong, and in turn, hinder their growth, is when they stop researching and listening to their customers. Just because your current products and services are successful, it doesn’t mean they always will be.
#3 Using outdated technology
A huge factor that limits growth in business is outdated technology. Unfortunately, technology evolves very quickly, and your business must stay on top of what is available. This is because outdated technology can cause timely and costly disruptions to your business. If you have a brick-and-mortar business, then you also need to ensure that the technology you use on your shop floor is not outdated, and you are utilizing technology that will enhance the customer experience, such as mobile SDKs, because if not, this can reflect negatively on your business to your customers, and cause delays.
#4 Relying on word of mouth referrals
Referrals are a great way to grow your business, but should not be something you solely rely on. While customers are more likely to buy from a business that has been referred by a friend, you should have a balance between acquiring new customers and nurturing your existing customers. Repeat customers also have a high retention rate, which is a tactic that should not be ignored.