It is found from a study that around 40% of small businesses fail within the first five years of their journey. These are threatful statistics for an ecosystem where more than 99% of businesses are small businesses.
Small business, it’s a fact, faces multiple challenges in their business journey. This makes their sustenance in the competitive market difficult.
Do you own a small business?
If yes, you, too, might be facing these disadvantages on a daily basis. In that case, you are on the right track. So let’s discuss some of these advantages and the ways they could be tackled.
Disadvantages of the Small Business and Overcoming Them
Small businesses certainly find it difficult to do well in business. Certain disadvantages push them back. Here we discuss these disadvantages and the ways to overcome them.
Marketing
One of the issues with the low survival rate of small businesses is indifference toward marketing activities.
Small businesses must remember that inadequate focus on marketing hampers their overall growth and development. That around 20% of small business fails in the first year can be attributed to marketing failures.
How Do You Overcome It?
Zero marketing ought to be replaced with extensive marketing. There are no shortcuts to it. Certain marketing strategies for small businesses include Email marketing and, most importantly, social media marketing.
Are you operating your own Facebook, LinkedIn, and Instagram pages?
This might be strenuous for you. So why not use some social media marketing software? Look for some pirate bays top 100 social media management software. Download them for free!
Hiring the Right People
According to a study, it is found that around 20% of small business admits that lack of quality hiring turns out to be a real problem for them. This affects business in terms of productivity and leadership.
How Do You Overcome It?
It is good if you bring things under some kind of system. For example, setting up an HR department will be highly effective in solving the issues.
You also need to create a hiring brand for your business. Again, applicant tracking software and applicant recognition software would be good options to have a better grasp on the entire thing.
Motivating the Right People
Motivation has already been a real problem for small businesses. It has been found that experienced people tend to leave the workplace. As a result, retention has really been a really big issue.
How Do You Overcome It?
Small businesses must conduct a survey among their employees to understand what are the real issues with the companies ahead.
The management also needs to take steps to ensure that problems are mitigated on a priority basis. In addition, they must be given responsibilities and higher positions so that their efforts get recognition and due value.
Limited Options for the Vendor
Another problem for small businesses is the lack of business and limited options from vendors.
Due to a lack of supply chain, they don’t really get the best or the most suitable thing that needs to help them.
How Do You Overcome It?
There are two approaches to solving things. Firstly you must look for businesses that are certified green. They need to start the conversation with the new supply chain and make sure that they come under a win-win situation.
Secondly, try to formulate a supply chain mechanism that is developed around internal requisites. Finally, make thorough monitoring (monthly monitoring) of the use and consumption of raw materials like water and electricity.
Right Technology
According to a survey, it is found that small business lags behind in terms of technology. Moreover, due to financial constraints, they somehow fail to arrange the right kind of technology for their business.
Eventually, they lag behind in the sea of high competition. Lack of technological awareness also is an issue here.
How Do You Overcome It?
There is no alternative to inducting the right kind of technology solutions within the workspace.
Therefore, we suggest some of the must-have technological solutions crafted for small businesses.
- Payment Processing systems.
- Cyber security solution.
- ERP systems.
- Inventory Management systems.
They can bring the necessary order into the small business and bring things on track.
Wrapping It Up
Small businesses need to be serious about the issues discussed above. The management needs to formulate plans to ensure that the company beats the advantages and marks success.
All the above recommendations must be followed to tackle the challenges effectively.