It's challenging to grow a business. Businesses that are just starting out, with less than 10 to 20 workers, and with annual revenue of less than $500,000 are still validating their business models. When a certain level of stability is reached, several recurring problems continue to afflict organizations.

SBE Council estimates that 89% of all enterprises have fewer than 20 employees. And scaling a company further is dependent on overcoming several business obstacles.

In this article, we'll go over some of the most frequent challenges that new businesses face, as well as some practical guidance on how to solve them.

1. Insufficient Funds or Cash Flow

According to Small Business Trends, Insufficient funds or cash flow is the largest issue for small businesses in 2022.

In fact, according to a study by the Australian Bureau of Statistics, 60% of small firms in the nation fail within the first three years, and insufficient cash flow is one of the major causes of this.

A business's ability to operate with operational cash as well as have room to grow and innovate depends on its capital and cash flow. A lack of them is an immediate threat to a company's viability.

Solution:

Fortunately, the current market offers a wide range of finance possibilities. Existing resources are frequently available. For instance, ROBS, often known as 401(k) business funding or Rollovers as Business Startups, enables you to access 401(k) and other retirement funds. Home equity lines of credit, also known as HELOCs, allow access to a home's existing equity.

Manage your financial flow wisely for business success. It can be difficult for business owners to do this, but it's best to maintain a cushion of cash reserves because you never know what the future business climate will be like. Review and make changes to your product line to focus only on the best-performing products. Examine your ability to cut staff, overhead costs associated with real estate, and other expenses.

2. Lead Generation

Another problem that most small businesses face is lead generation – specifically, producing enough leads to keep the sales team happy. This is a high priority according to marketers as well, but 58% of them also say that lead generation is a significant obstacle for business owners.

Given this, generating leads that are both high in quantity and high in quality is a critical goal. A productive lead-generating engine converts website visitors into potential clients and supplies a consistent flow of sales leads while you're sleeping.

Solution:

• You must first optimize your current website for conversions to make the lead-generation process effective for your company. Your website is an essential tool for converting prospects into customers. Look over your website and consider these questions:
• Do you use software like HubSpot's free lead-generating tool, which automatically collects form submissions and stores them in your contact database?
• Are all of your website's call-to-action buttons visible to visitors, or do they leave them perplexed as to what to do next?
• Are you building unique landing pages for each campaign you run?

Prioritize your website's most popular pages first. Most businesses have a few significant pages that drive the majority of their traffic - typically, the "About Us" page, "homepage," "Contact Us" page, and one or two of your most popular blog posts.

Next, use converting tools like:

• Slide-ins
• Hello bars
• Pop-ups

3. Avoiding Burnout  

Small business owners typically prefer to handle everything on their own. You know your service or product inside and out, and you can do it faster and better than anybody else.

But it will most likely cost you. Your family and health come before your money. Burnout and stress can frequently cause you to give up everything, which is not something you actually want to do. It is advisable to learn how to distribute your work and perhaps even hire some help, whether full-time or simply for an hour a day; it is entirely up to you.

Solution:

Allow them to assist you with the simple tasks that consume a lot of your time so that you can concentrate on the more crucial aspects of your business. When assigning assignments, keep in mind to be specific. A successful working relationship depends on effective communication. You don't have to do everything and keep in mind that getting aid doesn't mean you have to lose control.

4. Productivity and Time Management

When starting a business, time management is critical.

It might be easy to get distracted and focus on the wrong things while starting a new business because there are so many hats they have to wear.

Planning is essential since it will assist you in staying on track and keeping your goals in mind.

Solution:

• Dedicate a specific amount of time each week to thinking about and analyzing the areas that require improvement because it is easy to end up working in your business rather than on it.
• Create lists of things you can tick off as you go using time-management tools.
• Find a quiet space to work in and turn off email, app, and messaging notifications if you have an essential task to complete.
• Another strategy for better time management is to outsource tasks. For instance, it may be more productive and cost-effective to hire a web designer or accountant to handle your tax returns or build your website rather than doing it yourself.

 

5. Promoting Your Brand

Making a business visible to the target audience is vital in developing a branding strategy. In today's world, this entails selecting an appropriate social media platform to promote your brand.

Solution:

However, choosing the right platform might not always be easy. When promoting your brand, keep the following things in mind:

• Hire a social media marketing specialist to handle the marketing work.
• Pick a platform that receives the greatest traffic from your target market.
• Build communication channels with your customers by developing interactive features.
• Use modern marketing strategies such as offering gifts, vouchers, and other promotional items that feature your company name.

Final Words:

When it comes to business, there will always be challenges, but how to overcome them and learn from them will ultimately define your company and its overall success. Using the tips in this article, you may get effective guidance on how to deal with challenges like these when they affect your business.

What are the major business challenges that your company has faced so far? Let us know in the comment section below.