Hidden Problems That Are Ruining Your Small Business
We are often told that what we don’t know can’t hurt us. This may apply to some areas of life, but, where your small business is concerned, it just isn’t right. Many company killers are apparent. They’re the problems that make the headlines and write cautionary tales. However, there are many hidden threats that you might not even know exist. These can completely blindside you and wreak havoc. With that in mind, here are six hidden problems that you should know about.
- Unmotivated Sales Department
Never assume that your sales team have the same work ethic that you do. After all, this is very rarely true. When employees aren’t putting the work in, it tends to lead to a drop in sales. This can cause a lot of problems and potentially lead to your downfall. You have to set clear targets so that staff know what you expect of them. It’s vital that you reward the hardest workers too.
- Badly Priced Products
Even with your sales staff working their hardest, you’ll struggle to make a profit if you set the wrong prices. Choosing too high a price means that fewer people will want to buy your products, but setting prices too low will ensure that you’ll make little money regardless of sales. You must conduct research to find a price that is affordable to customers but will still generate a profit.
- Outdated Marketing Tactics
Marketing has changed significantly over the years. The tactics that worked just a decade ago are now mostly outdated, and no business can survive without a website or social media. To ensure that your site is up to scratch, you should seek IT support services. You might also want to find automation software or an app to post regular content across your social platforms.
- Slow Payment Collections
Poor cash flow has sunk many businesses over the years. Thankfully, it is an issue that can usually be addressed quite easily. Rather than overlooking late payments from customers, you should put deterrents in place, like late payment fees and charges. You might also want to reward those who choose to pay early. This might be with a free gift or a small discount.
- Poor Retention Strategy
As vital as it is to acquire new customers, retaining those you already have is even more important. These individuals are much more valuable, as they’re more likely to make a purchase and might even suggest your business to others. Focusing on customer retention, therefore, is crucial. It’s also critical that you retain quality hires and work to reduce employee turnover.
- Lack Of Training
No new employee walks into a job knowing exactly how to do it. The only way to keep them from making silly mistakes is to provide proper training. You could give this training yourself or hire someone else to do it for you. Regardless, you must make sure that staff are prepared for their roles before they start work. Although on-the-job training has its benefits, it definitely isn’t perfect.
To keep your company up and running, make sure that you address the hidden issues listed above.