Challenges You May Face As A Small Business And How To Overcome Them

Starting a small business can be equal parts challenging and rewarding, provided you put in the necessary hard work and dedication. According to statistics, around 20% of new businesses fail within the first two years and an astonishing 65% during the first ten years. While these numbers may seem disheartening, there is no reason for your business startup not to succeed if you are fully aware of the potential challenges you may face. Being prepared to jump hurdles and overcome setbacks will contribute towards a thriving business. Here are just a few of the obstacles you may encounter.

Limited Funding

Starting a business of any size is invariably expensive. From licensing and permits to insurance, the costs rapidly mount up. While the average UK startup costs around £5,000, most businesses will spend around £22,756 in their first year alone. Fortunately, there are many ways of obtaining the funds necessary for a successful business venture without investing your life savings, including business loans, crowdfunding and personal loans from friends and relatives.

Trouble Finding Dedicated Employees

Hiring your first-ever employee can be a daunting task. Taking on talented, dedicated individuals who are just as passionate about your business as you are can often feel like gambling away your future. Employee onboarding is inherently costly and time-consuming, so it is understandable why companies are keen to attract the best of the best. To avoid a high employee turnover, ensure your job descriptions are expertly written and advertised on reputable recruitment websites. Furthermore, be clear about your company’s brand, goals and values.

Lack Of Brand Awareness

Another vital method of attracting exceptional employees is to increase your brand awareness so you can connect with suitable candidates. Good brand awareness is also crucial to the success of your business - in essence, the more recognition our brand has, the more successful it will be. Lack of brand awareness and targeting the wrong groups could lead to low customer engagement, impacting the growth of your business. Strategies for increasing brand awareness include investing in SEO (search engine optimisation), increasing your social media presence and researching your target audience.

Maintaining Quality Products And Services

Maintaining consistency in terms of quality products and services is vital for customer loyalty. Establish a good reputation in customer markets and strive for consistently high-quality goods and services that meet customer demand. This may involve implementing a quality management system or even changing your from GOV.UK or hire a business plan writer/consultant to guide you through the process.

Difficulties Standing Out Against Competitors

When it comes to business marketing, your primary objectives are to target the right audience and to stand out against the competition. Lack of differentiation and becoming swallowed up by a sea of similar startups are significant factors in business failure. Start by researching your competitors so you can identify holes in the market and ways in which you can stand out. Offer your customers unique experiences and avoid unsuccessful marketing initiatives by thoroughly understanding your target audience. Additionally, keep in mind that as a business owner, you have the right to refuse marketing ideas you fear will be unsuccessful.

Loss Of Passion

As time wears on, the initial excitement you felt from starting a new business will gradually begin to wane. However, if you find yourself feeling utterly uninspired, your business may suffer as a result. You can keep spirits high and energy levels soaring by surrounding yourself with a supportive team of talented professionals. It may also be worth taking some time out to reassess your goals and reconnect with the initial driving force behind your business startup.