From dealing with the uncertainty of where your business is heading to taking care of overheads, these common concerns spring up more often than you’d think, and can be costly if they go unchecked. Here, we’ll present 10 of the most frequent problems that businesses face when they grow, and what they need to do to overcome them.
Overheads can easily mount up whether they’re coming in the form of admin expenses, insurance, rent or utility charges. Excessive overheads can be particularly damaging if not managed in a timely fashion, so they’re a fairly big problem for small businesses to contend with.
The solution: Take a look at your spending and see what can be cut back. Any service that’s unnecessary to your team or your customers should be scaled down. Quick fixes include cloud computing, free video call services, telecommuting where possible, and renting rather than buying office equipment.
How do you measure performance? How do potential indicators illustrate that your team is performing to its fullest? If certain members of your team aren’t working as well as they should, your business could suffer as a result.
The solution: Detail a set of performance indicators that show how well your team and your business is performing. Rather than using simplistic finance indicators, it’s highly beneficial to identify, clarify and agree upon the expectations of respective teams. Identify how the results will be measured, monitor the progress and evaluate performances at the end of the management cycle.
In the modern business world, your image and reputation can easily be affected by negative reviews online. Likewise, customers expect quick, effective customer service. It’s up to businesses to listen to customer feedback, putting them in a position to deliver satisfactory service to their core audience.
The solution: Consider investing in a consultant or a third party who can monitor how you’re perceived online and can pinpoint where it is you’re going wrong with your customer service. They’ll help with everything from choosing the right customer-facing employees to streamlining the handoff process.
In this day and age, starting a business is more realistic and achievable than ever. With so much easily-accessible information and guidance out there, there can theoretically be more competition in the same market. Whether competition focuses on a single service or a broader market, how do you stand out from the rest?
The solution: Keeping an eye on competitor activity can give you an inside track on how to get ahead. Monitoring their processes and practices can help you anticipate their next moves – and adapt your strategy accordingly.
As mentioned before, optimise your customer service in a way that exceeds expectations. Identify the aspects of your service and/or product that your customers value most, and provide the greatest service there.
Be an early adopter of new technologies as well as processes, products and solutions. Make your site mobile-compatible, harness the power of social media effectively and make a lasting impression on everything you do. Showing your customers you’re a forward-thinking, progressive company with a product or service to match is a strong way of standing out.
Regulation and compliance can be a major issue if not dealt with properly. As markets and technologies evolve, they bring with them a new set of rules and regulations. Unfortunately, businesses are often unaware of, or don’t understand, what’s being asked of them. At this point, fines and penalties come into play, and something that could easily have been resolved becomes a problem.
The solution: Depending on your sector, attempting to understand the complex wording of any new regulations could be a bit of an uphill battle, especially with everything else that’s going on in your business. Consider hiring a consultant to ease you along the process of compliance if you need to.
You can’t know exactly what is going to happen in the future, but you can prepare for customer and market trends with some canny forward planning. Most businesses will have some sort of goal mapped out, but without this, businesses can expect to stifle themselves and create discomfort in their employees.
The solution: With uncertainty at the helm, short-term goals take precedence. However, the importance of long-term goals should never be discounted. Have a five or 10-year plan in place and balance that with more ad hoc short-term strategies in order to fully keep your business in control.
Rather than merely an IT issue, cyber security is increasingly a risk for almost all businesses. If their cyber security isn’t properly managed, businesses leave themselves exposed to an increasing number of threats which can lead to data theft, hacks and other attacks.
The solution: An approach that integrates cyber protection into every aspect of the business, from the IT department to training its employees, is recommended. Cyber security frameworks are available to business and many are utilitarian in their approach, covering business context, policy and standards, security capabilities and controls, and the environment.
As the company grows and you see successes, you’ll hopefully get a handle on the kind of person who’s the right fit for your business. In a small business, skill and personality tend to be favoured over other qualities, but not everyone is going to be the right person for a given company.
The solution: Before, during and after the hiring process, it’s important to tailor your management style to the varying personalities in the office. Look to what works best for each individual; some enjoy working in groups, others are more content to carry out tasks on their own.
Introduce candidates to your team if possible, to determine how the dynamics may work. This may take the form of inviting the candidate’s would-be line manager into the interview process.
Create an environment where your staff can thrive. Be transparent with their expectations, concerns and successes, and create a work/life balance that ensures comfort and happiness throughout the team.
At this point, you’ll have identified a customer base that gravitates towards your service or product, but how do you ensure they stay with you and keep coming back to you?
The solution: Look at the characteristics of your current best customers, those that generate most profit repeatedly use your service and speak highly about your brand. What are the common traits among them? Don’t be afraid to ask your best customers what they want, the feedback is integral to finding and retaining valued customers.
Whether it’s outstanding bills, unexpected outgoings, or pending payments; money problems can be a major issue. With so much to balance, maintaining a healthy cash flow is key to surviving as a business.
The solution: Plan and budget as much as possible. There are plenty of money management tools out there to keep track of your cash flow. Look into apps that can create budgets, calculate VAT, automate bill payments and alert you when unusual outgoings occur.
It could be advisable to look into fixing costs wherever possible. Essential overheads such as energy costs can be fixed, our Shield Gas and Shield Electricity products being perfect examples.
And above all, always be ready and willing to learn when your business is going through a period of growth – it may be a little daunting, but it is often hugely exciting and incredibly rewarding.
Gazprom Energy is a leading and award-winning business energy supplier, helping thousands of small businesses manage their gas and electricity contracts. To find out more about what we can offer your business, visit the homepage or call us today on 0845 230 0011.
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