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It’s important for business owners to know about the potential problems they might face while running a business. They have to be prepared and knowing about what challenges they may run to will most likely help them stay calm and productively face these challenges.
Here are some common business problems that you might be facing as business owners and some actions you can take to solve them:
Time Management
Time is a valuable resource. Business owners have to make use of this resource wisely, after all, poor time management can cost you a lot of money.
Being an entrepreneur demands one to be a multitasker, oftentimes you find yourself having to fulfill different roles which makes it difficult for you to manage your time. This is especially true for small business owners.
Being in a fast-paced competitive world makes it seem that 24 hours a day is not enough and that it is impossible to find work-life balance amidst your busy schedules. Good thing there are different ways to slowly find this balance.
SOLUTION: Time Management Plan
To manage your time efficiently, there is a set of principles that will help you achieve more.
Start by listing your goals for your business. It’s important to know what you want to do and what you want to be. Make sure to separate your short-term plans from your long-term plans.
After identifying your goals, it’s time to list specific tasks that will help you in achieving your goal. It’s important to organize your list according to the importance of each task.
You don’t have to totally fill every hour of a day with a task, it’s okay to leave some unscheduled time. You don’t know what can happen in a day, after all, your time is limited. Always leave room for flexibility.
You don’t have to stress yourself when you have an unticked box on your to-do list, it’s perfectly fine to have some unfinished tasks as that is how it usually is in business. You can still be productive by doing the less challenging task first as a quick mental break from the task you were previously having a hard time accomplishing.
Lastly, make healthy habits. It’s important to develop healthy time management habits to avoid being pressed for time and possible burnout. You don’t have to feel guilty about taking a break, an adequate mental and physical break is essential to being more productive.
Getting Customers
Getting customers is every business owner’s goal and it is easier said than done.
Statistica’s findings have shown that there is an increase in Micro, Small, and Medium Enterprises (MSME) in the Philippines. E-commerce sites have been aiding a lot of individuals in starting their own businesses resulting in tough competition.
With an increase in businesses offering the same goods and services, it is tough to get a consistent client list. There are a lot of ways to get ahead with your fellow competitors and get customers, here are some:
SOLUTION:
Use and expand your network. Letting everyone know of the product and services you provide will help in expanding your client list and a good word-of- mouth tactic will help your business grow.
Use your existing networks since these people have established trust in you and your business. They are also the ones who will most likely recommend your business to the people they know, use that to your advantage.
Do not hesitate to join groups that are centered to your services to widen your reach.
Provide a good customer experience. It’s important to make your existing customers stay, and a good experience with you will help that. Make sure to provide excellent service for everyone, even for first-timers, to build up your reputation.
Try to position yourself as a client in order to understand their behaviors, and provide an even better service for them.
Giving them a little freebie won’t hurt as well since it helps in building a better brand image.
Recruiting Talented People
It’s important to hire and retain talented people that have the talent and skills your company needs. The people you hire affect your company. Apart from adding value to your company, it will also cost you if you hired the wrong people.
Hiring talented people is not easy as there is a lot of competition. There are larger and more well-known companies that are also on the lookout for talents.
SOLUTION:
Write a compelling job posting. When trying to hire new people, it’s important to understand the aspirations of a job seeker. Your target won’t only be people with long years of experience but also young talented individuals that are fresh out of school.
Instead of writing the usual dull job descriptions, you can try and write your job posting as compelling as you can to encourage job seekers to apply to your company. There is no harm in trying to write it in a more personal tone, instead of only writing “must be innovative”, try writing “you will be a part of a team that seeks growth.”
It’s also important to not rush and follow all the necessary processes in hiring new people, and once you’re sure you found the kind of talented individual you are looking for, do not let them go and provide them with competitive salaries and benefits.
Lack of Capital and Funding for Growth
Starting a business requires you to have proper funding. Funds make the business run and the lack of it is a threat to your business.
Funding is crucial not only for the growth and expansion of the business but also to operate it. There are operating expenses that each company, regardless of its size, has to pay.
SOLUTION:
Obtain enough funds. In order to maintain your business, there should be enough funds that you can use for your operating expenses. There are ways to obtain enough funds and taking a loan is one of them. There are different types of business loans that you can get in the Philippines. Most find it intimidating to get a loan but once you get enough information about it, you’ll be able to get a loan in no time.
A quick reminder though, you may have applied for a loan with good intentions but before anything else, make sure that you understand what you’re getting into and be prepared for unforeseen events because not everything goes according to plan.
Create a separate bank account. The first step in managing your funds that many business owners neglect to do is to create a separate account for your business. The record that the banks may provide you on your spending and finances may help in your budget allocation and in managing your cash flow.
Manage cash flow. It’s important to track and know where all your funds are going and managing your cash flow is one of the best ways to do that. Failure to manage your funds properly may result in your business revenue going down despite it is still profitable. A simple spreadsheet will do if you do not have any accounting software in use, it’s important to use a system that will help you see how much you have and where your money is going.
Profit does not necessarily mean your business is set to survive, without a proper cash flow system implemented, you might now see that despite having money coming in, you have a lot more money going out.
Administrative Work
Getting administrative tasks done is essential in keeping your workplace organized and smoothly running. With effective administration work, all other departments will be able to run smoothly. Oftentimes, this is neglected. If the business owner also happens to be doing all the administrative work apart from their other roles, it could be taxing and mistakes could happen.
SOLUTION:
Practice good organizational skills. Make sure you have a timetable or a calendar that you always update and be consistent. Administration work can be taxing so it’s best if you have a schedule that you can follow so it won’t feel as grueling as it was.
You can also try to put a system in place for your coworkers whom you frequently talk to follow some process whenever they have to ask you about something. Asking them to put proper subject lines in emails is one so that it will be easier for you to sort your work.
Marketing and Advertising
In order to make profits and see results, it’s important to properly market and advertise your products and services. There are a plethora of solutions in this field.
With tough competition out there who also provide the same product and services you offer, it’s important to learn different marketing strategies in order to grab the attention of potential clients.
SOLUTION:
Maintain an online presence. With people tuning in online more than ever, apart from offline marketing, it’s also important to be able to have an online presence. People have to know about the existence of your business so take advantage of the internet and use it for letting people know about you.
You can use social media for that. Post and share content about your business, grow your social media account to reach more audiences and have a larger customer base.
Launch effective marketing campaigns. You can try different marketing strategies for your business, and launching a reward program for your consumers is one way of doing that.
If you find it hard to generate and develop marketing ideas, you can always outsource. If you need a team that will help you create effective marketing campaigns, Verafede can do it for you.
Why Verafede?
Being in the marketing business for 8 years, Verafede has been developing various marketing campaigns for both big and small companies.
If you want to get your message across to your potential customers, hire a tested marketing agency to help you.
Contact us, and let’s turn ideas into a great experience!
Related Reads:
“Are Bazaars Still A Thing?” How To Create A Direct To Consumer Brand Experience For Your Business
Heads Up, Start-Ups! Marketing Tips for Start-Up Businesses in 2021
Arabelle Agodo
Ara is a BA Communication Arts student majoring in Writing at the University of the Philippines - Los Baños. She is a content writer and is challenging herself in copywriting. Currently, she is a Creative Intern at Verafede Inc.
