3 Common Small Business Problems and Their Solutions
If you’re a Small Business with between 10 and 50 employees, you may find these issues resonate with you. Here are 3 common small business problems that companies are facing in today’s business environment:
- Finding and keeping the right people
- Consistently expanding your customer reach and following
- Inflationary pressure on costs and prices
Here’s a closer look at these problems and their potential solutions:
Problem:
1. Finding and keeping the right people
In March 2022, according to a report published by the National Federation of Independent Business, 48% of small businesses said they reported job openings they could not fill.
Solutions:
Look to recruitment channels you haven’t used in the past for increased exposure to applicants. Online recruiting services like Indeed, Zip-Recruiter, and Glassdoor Jobs have excellent screening techniques and can add real value to your search process. Ask and reward your existing employees for referring others for unfilled positions. Consider using video platforms to promote testimonials from happy employees about the work environment and their experience with your company’s culture. Check out my article on “Making your company a great place to work”.
Problem:
2. Consistently expanding your customer reach and following
Many companies have developed a book of customers over time but find it challenging to deal with attrition. You can plan on losing a percentage of existing customers every year. That requires strong marketing and sales programs to replace those businesses who leave.
Solution:
Coop-marketing: Partnering with another brand will help you inherit some of their market image and reputation and create connections outside your circle. It’s a great way to gain a large volume of new contacts.
Many consulting, coaching, and medical practices have been doing this for years with great success.
Boost PR and marketing efforts to expand the number of people you reach. Consistently work on establishing authority in your industry and trust among your prospective customers. Check out this article from First Round Capital on how to get your public relations right. This small business problem can be more easily be overcome with the right focused efforts.
Problem:
3. Inflationary pressure on costs and prices
Seventy-four percent of businesses are experiencing rising costs, with 47% passing those costs to consumers. (Source CNBC). Thirty-one percent of owners report inflation as the most significant risk to their business.
Solution:
Inflation is a complicated issue and is changing almost daily. Here are a few ideas to help you.
• Stay on top of your company’s financials. Review with your accountant or trusted advisor
• Talk with your suppliers and see if they can give you discounts for preordering or buying in bulk. They may have some flexibility based on the competition they are facing.
• Focus your energies on growth. Bringing in additional business can help you ride out this season of inflation. It will also keep your staff motivated and inspired while limiting the adverse effects of inflation.
• Look at your competition’s pricing. Keep your pricing a bit below theirs.
• Be honest with your customers about any pricing increases. Be transparent, and don’t surprise them.
Solving the issues mentioned here can be challenging. You won’t be able to make them disappear overnight. If you need help with these small business challenges and solutions, click on the schedule a call button, and we will work on them together.