Small businesses are the backbone of this country. They create jobs, come up with new ways of doing old things, and help keep money in the local community. Without small businesses, we’d be in a bigger economic mess.
Among those of us with small businesses, there’s confusion between the terms Small-Business Owner and Entrepreneur. Both can have small businesses, but they have different styles of leadership and thoughts on running their business. One is not better than the other, they’re just different.
Business consulting in its purest sense is the ability to magnetize a business owner, entrepreneur, professional, mature or startup business to areas of critical performance based on meaningful, experienced, and documented understanding of the issue. Those critical areas can be marketing strategy, competitive advantage, and business model.
Small business and entrepreneur are facing many challenges;
Lack of Knowledge/Skills
This is one of the top most mistakes made by entrepreneurs. It is important that you have ample knowledge about the industry you are entering, your competitors, your target market, current trends, advertising and marketing techniques as well as financial know-how.
Lack of Direction and Planning
This problem prevails because of not creating a thorough and detailed business plan. Many young entrepreneurs are so excited about setting up their very own business that they fail to prepare a proper business plan. It helps in focusing on the goal and mission of the business. It determines the financial situation of the business, the roadmap to follow, market research and analysis of the competition. A business plan is basically an investment to your business.
Working in the Business rather than Working on the Business
Usually entrepreneurs get so worked up with the paperwork, satisfying customers and doing all the necessary things in keeping the business running. They fail to fulfill some other equally crucial tasks. It is important that you take a day or even a few hours to analyze your business. Determine which area needs attention, do an inventory review, review cash flow of your business, review payrolls and employee benefits. It is also important to update your corporate minutes, your contracts and your agreements with stakeholders annually. Hold meetings with your managers and other employees to connect with them.
Unfortunately, there are many new startup companies that stick to the age old book rules. They don’t try to create an innovative culture, even majority of the big businesses struggle with innovation. People get accustomed to the work culture and they don’t think outside the box. Businessmen and employees stay away from change and resist whatever changes that take place in the company. The best thing to do is to be open to innovation. When bringing a change, ensure that all your employees are prepared for it. Discuss it with them in a meeting, tell them how important it is to be innovative, make them understand how beneficial it will be.
Trying to Do It Alone
coping with everything alone is also one of the most common mistake new business owners make. They believe that they can manage everything and don’t need any advice or help form anyone. Initially, they do seem to be successful in this strategy as the cost is low since they handle everything. However, as the work starts growing gradually, the workload takes a toll on the new entrepreneur. Mistakes start being made and the quality of work starts decreasing. You may even start losing customers soon. This is why this strategy is not successful in the long run. Hiring two to three employees is more beneficial for a start up business. It is better to pay a small amount to your workers than lose double the amount in the future.
For a new business, it is difficult to attract prospects and retain customers. With a small marketing and advertising budget, new entrepreneurs are unable to reach out to a wider audience. Potential customers are usually hesitant to going for a new business. They prefer going for companies that have experience and a large customer following. However, the good news is big companies charge more. There are many clients and customers who are looking for companies that provide cheaper, but good quality service. Providing excellent service to them will ensure that they remain your customers and even recommend you to others.
Apart from a detailed business plan, a marketing plan is also important for any business. Once you have a clear idea about your target market and your competition, you can allocate a budget for advertising and promoting your business and decide which medium to advertise through. You can also decide your product pricing through target market analysis. Make sure you that your pricing can be easily afforded by your target market and that your advertising effectively reaches them.
What EVEREST offers for the small business and entrepreneur?
- Define your business goals and plans, and run your business efficiently with Small Business Planning & Strategy Consulting.
- Grow your business with a powerful marketing plan, with Marketing Strategy Consulting.
- Attract customers by formulating a cohesive and powerful Internet marketing and website design plan with Internet Marketing Consulting.
- Increase motivation, focus, clarity, success and balance. Combine Consulting and Coaching programs to create the business of your dreams. And learn more about my small business coaching