Overcoming 7 Major Small Business Challenges
Updated: Mar 8, 2022
Guy Kawaski, American marketing specialist and Silicon Valley venture capitalist, famously quipped that “the hardest thing about getting started, is getting started.” To simply begin is an accomplishment unto itself. But once the sheen of new beginnings wears off, the harsh realities of running a small business come crashing into focus. The global economy is massive and complex, competition is ferocious and omnipresent, and technology keeps advancing at breakneck speed. It can be overwhelming. However, it is through these challenges that a forward-thinking entrepreneur will achieve success. Thankfully, an easy entry point is right in your pocket, and there’s a good chance you’re reading this on that device right now.
There are currently more than one billion smartphones active on the planet. More people are using their smartphones for more things, overwhelmingly preferring them to desktops or laptops. If properly leveraged, this simple fact can benefit your business in astonishing ways. According to recent research, there are over 8.9 million apps in existence, with roughly 3.4 million being available on Google Play and the App Store. There is an app for everything, and customers routinely expect niche, app-based experiences. What follows are common challenges that small businesses face, and how a customized app can help overcome them.
1. Cash Flow Management
Of all the pitfalls on the path to success, improper cash flow management continues to be the largest, accounting for 82% of small business failures. These mistakes are easy to make but compound cruelly with every repetition. Money is constantly coming in and going out, moving in the blink of an eye, and it takes time and focus to fall into an effective rhythm for managing it. Some businesses never figure it out. Some fall into bad habits which negatively impact them for the duration of their operation. Some recognize the gravity of the challenge and proactively approach it. This is where a key distinction is made: The savvy entrepreneur knows the importance of monitoring and managing their cash flow and utilizes available technology to get an early handle on it. The better you understand your cash flow, the more effectively you can operate, strategize, and grow. A centralized, customized app is a game-changer for doing business.
A personalized app can change the way you approach cash flow management and help you avoid costly pitfalls. Click here to learn more. 2. Communication
Effective communication is the underpinning to all success, whether personal or professional. Better communication with your customer base will lead to increased revenue. Pretty obvious, right? What is less obvious is that better communication within the organization can yield significant benefits as well. Melcrum, a best-practice insight, and technology company, recently reported that effective internal communication can lead to a 40% uplift in customer satisfaction, 30% growth in profits, and a 36% increase in the overall performance of an organization. An extra third of your current profits can be added simply by reconsidering your communication framework. The introduction of a personalized app sets the rules of engagement both for your client and for your team. For your client, there are avenues for direct communication for support or dispute resolution, alongside customer-to-customer trust-building facilities like testimonials, feedback, and reviews. For your employees, there is a centralized structure for communication that can be refined to increase transparency and ultimately improve organizational efficiency. The beauty is that you can define these interactions in ways that are most beneficial to your organization.
3. Hiring Process
22% of business owners found employee recruitment and retention to be a significant pain point in their operations, according to a State of Small Business survey. Finding and keeping good talent is a sure-fire way to grow your business, but the challenges seem endless. Part of the difficulty is understanding exactly where you need help. If you don’t recognize the places that require increased support, the right candidate might never have a chance to meet you. By customizing an app for your business, you take control of your data; increasing your understanding of what makes you unique and attractive, the demographic you appeal to, and areas of potential growth.
4. Finding the Right Clients
Understanding who your product or service appeals to is integral to success in an increasingly competitive digital landscape. An app removes the guesswork of customer attraction by databasing prospective buyers and automatically adjusting ads and recommendations to craft a more relevant buying experience. The more relevant data you have about your customer base, the better you can showcase your offerings. The better you showcase your offering, the higher your conversion rates.
Want to see for yourself? Get a custom-tailored app prototype for your business. Click here to find out more.
5. Time Management
We live in a world constantly vying for our attention – emails, phone calls, instant messages, last-minute deadline adjustments, constantly shifting meeting schedules. Distractions are never out of view. Then, consider the multiple job functions that most entrepreneurs perform, and it is no wonder that 24% of survey respondents ranked time management as the main challenge. Managing your time effectively means reducing the noise that surrounds you to increase your focus on achieving your goals. A personalized app increases that focus by giving you a bird’s eye view of what’s working and what isn’t. By reducing the noise (and the stress) you can meaningfully prioritize your tasks and set realistic deadlines.
6. Building Consumer Trust
As we’ve seen, a customized app is a great way to understand your target demographic and engage with them effectively. These are foundational aspects of the trust-building process of long-term relationships. By building a loyal customer base, you allow for sustainable growth and improved sales. The knock-on benefit of app engagement is that you can build exclusive offerings or memberships to those using the app, incentivizing further usage of your platform. An engaging experience ensures sustained interest. Sustained interest equals sustained profits.
7. Increasing Awareness
70% of brand managers say that building an audience is more valuable than direct sales. In 2021 and beyond, most agree that their primary goal in marketing campaigns is building brand awareness. Customers must know who you are before they can buy from you. Building visibility takes time, but it is crucial for continued success. Apps are fantastic centering agents for brand identity. The design of your app can echo through different channels, creating continuity in your marketing and messaging. Not to mention the instantaneous brand recall they feel when they view the icon on the screen or receive a notification from it.
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