Main problems for small businesses and how to solve them
Currently, to keep the doors open, it is necessary to know how to act strategically, obtaining maximum results with each available resource. But, to do this, it is necessary to know the main problems, which can be seen as a threat or as an opportunity for improvement.
Once you identify them, you will need to develop and implement solutions. This way, the business will have a greater chance of success. With this in mind, we created this post especially for you. We’re going to talk about the main problems facing small businesses and give you some tips on how to solve them.
1. Find your niche
Competing with large companies is not an easy task. They generally have many more resources, whether human or financial. In this scenario, you need to look for another strategy.
As it is not possible to compete on equal terms, the best option is for the small company to seek to satisfy a specific target audience , operating in a market niche. To make it even clearer: imagine large national magazines, like Renner or Marisa. To face them and get a good advantage, it is recommended to work in a specific area — such as plus size, pregnant or sustainable fashion. When this is done, you can understand and meet your customers’ needs more efficiently.
2. Attract and retain customers
You may have heard that customers are more demanding, right? This is because they are more aware and better informed. Therefore, it is not enough to offer a low price. To attract and retain them, you need to offer a real value proposition.
In this regard, large corporations usually invest tens of thousands of reais in social media and TV commercials, for example. But in a small business, it is best to start with customers who are already inside the establishment. According to marketing guru Philip Kotler, retaining a customer costs between 5 and 7 times cheaper than acquiring a new one. So, don’t miss this opportunity!
A great tip is to offer a loyalty program for repeat customers. Therefore, the more the customer consumes in your store, the more benefits they accumulate, always having an incentive to return. Furthermore, he will be willing to spend a little more and act as a promoter, speaking highly of your brand to his friends and family.
3. Find and hire qualified labor
When there are no qualified professionals for the job, the number of errors is likely to increase, productivity will decrease and customers will be dissatisfied. To solve this problem, it is important to invest in a good recruitment and selection process, made up of really efficient steps.
But first you need to know how to create an employer brand, capable of attracting young talents to the enterprise. An employer brand acts like a magnet, attracting the best professionals. One of the first steps to building it is creating a careers page, where you can talk about the company culture , benefits packages and other perks.
4. Optimize existing processes
Every company, whether large or small, carries out its daily activities through processes. When these processes are flawed, the company loses time and money in carrying out tasks, even the simplest ones.
Now imagine the process of making a cupcake. It’s needed:
When this is not done with quality, there will probably be waste of materials. To eliminate existing problems, the best option is to create a clear process and share it with all employees.
5. Price your products appropriately
For an establishment to remain healthy, it must have a good profit margin on each sale. When this doesn’t happen, it becomes impossible to invest in strategic activities, such as retaining customers or motivating employees. Therefore, it is essential to know how to price products . A good price must consider 3 factors:
A great tip is to invest more and more in strategic costs (which can generate new business and increase profits) — such as loyalty systems — and eliminate as much as possible non-strategic costs (which do not generate new opportunities) — such as rent or building materials desk.
6. Adapt to external changes
The market is constantly changing and every day new trends and technologies emerge to transform it. When a company is not aware of these changes, it becomes obsolete and stops being attractive to consumers. Therefore, it is necessary to always be innovating, identifying and implementing tools that can optimize the results of the enterprise. Furthermore, it is necessary to create a culture of innovation, encouraging all employees to think “outside the box”.
There are many problems that can negatively influence the results of an establishment. Therefore, it is crucial to always keep your eyes open, identifying and implementing improvements that can make the business more successful.
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