Doing business in a modern day world can be very demanding and the rate at which other businesses fail is not so encouraging for someone who wants to start out. A lot of entrepreneurs learn their lesson late and lose most of their resources if not all in the process of doing business. Today, we are going to be looking at Business problems and solutions to tackle it.
Business involves trading in either goods or services for an acceptable medium of exchange but quite a number of entrepreneurs lack the basic knowledge to make this happen. There are many books out there that highlights business tricks and how to make it in business but none of it can be compared to the innate ability of an entrepreneur to conduct business transactions successfully. Doing business transcends just selling or offering services to people, it involves some intricacies that must be paid attention to before you start your business venture, when you begin and as you go along the path of growing your franchise into what you aim for it to be.
The world thrives and live off businesses and no business is too small as a petty trader operating his day to day business from a kiosk has a quota he contributes to the economy and also stands as a percentage in the 100% of economy drivers in the world as his sales, efforts, advertisement, tax, bank saving also have its own impact on global economics.
Entrepreneurial ventures face problems ranging from financial, attitudinal, economic, cultural and social economic issues. The most common problem businesses encounter are:
▪ Insufficient capital: This is the most common problem. Some entrepreneurs have billion dollar business ideas but have $200 budget which can make the business plan flop before it leaves the ground. Although some businesses still manage to stand on Goodwill of agencies and grants from different sources, not all get so lucky. Facebook also had this challenge when the founders were already maxing out their credit cards to fund the project but all they had to do was look at a bigger picture and get investors who believe in their dreams. Although money is a huge factor in business, it is one of the last important things as having money while lacking basic business skills will not only be a waste of resources but will also spell doom for your enterprise.
▪ Failure to plan: As the saying goes, if you fail to plan, then you most definitely have plans to fail in whatever you do. Running a business without a game plan and expecting sales is nothing but a total waste of time as it can be likened to waiting for a ship at an airport, it just can’t happen. A lot of businesses lack game plan which includes having a sales plan, customer support framework, mode of operations etc. All these are essential to Kick-start your business and also help to know how best to start.
▪ Having no sense of direction: A lot of businesses have crashed due to not having a goal or vision in mind. The owners just wake up and say “let’s start a business” and voila it starts without having a sense of direction of where they should steer the wheels of the business to.
▪ Inaccurate market data: Some entrepreneurs carry out market survey but sometimes, it is just not enough. A survey can not be said to be 100% accurate because human nature is bound to shift towards their desires at a particular time. A lot of prospective business owners have been tricked into starting a business either by relatives saying that they would make much sales not knowing it is all hype or a ploy from the relative to get free services from the business. Doing extensive market research on what sells, what moves, what products people need and how best to meet at an equilibrium price that will boost patronage should be considered.
▪ Not seeking professional/expert advice: Starting a business without taking advice from experts in the field is another fast way to waste both your money and time. Expert advice provides an insight into what you are new to and they share their wealth of experience either you which might have cost you years, plenty of resources and mistakes to learn. Although expert advice is needed to gain knowledge, it is strongly recommended that you should follow the advice at your own discretion.
▪ Resisting Change: This single reason was what caused former Tech giants, Nokia the number one spot on the list of major tech companies. When the android innovation newly came out, Nokia refused to move with the trend and stayed with their game plan without improvising or changing their products to suit the desired needs of users. This mistake and oversight cost Nokia almost all of their market share as they were soon groping for survival as they got relegated to the bottom of the ladder. Resisting change not only kills innovation, it also makes businesses lose out big on growth and profits they should gain.
▪ Picking profit over service: Being too mindful of profits you make rather than what your customers enjoy will send your business tumbling down into chaos. Business ventures who are too money conscious with little or no attention to the satisfaction of customers will lose such customers to other companies. As they say, “in business, customer satisfaction and service is everything.”
▪ Over reliance on a single customer/Product: Large fortune 500 companies have failed due to over reliance on one product or customer. The moment such customer walks out of the door or such product gets a cheap market competitor, it will definitely affect the business and a lot of organizations hardly recover from such blow. It is imperative to not put all your eggs in one basket. Business owners are advised to diversify their portfolio and try to go after all customers at the same pace without placing one above the other, so as to prevent falling on hard times should a product fail or they lose a customer.
Businesses thrive when all necessary factors need to push it forward is put in place. If all areas are tended to, the rate of success of businesses will be high and the world economy will be better.