4 Small Business Challenges and How to Fix Them
When looking at the challenges to a business based on size, small businesses are more likely to face challenges that have a drastic short-term impact than larger, more established companies. In the first few years of operation, the odds of business survival are not in favor of small businesses. The truth of the matter is that small businesses don’t have it easy, but that’s not to say that there aren’t some tips that can help them come out on top. Here are some of the most common small business challenges we see, and what you can do to fix them.
1. Finding Customers
This is a challenge that is seen across every industry regardless of how many years you’ve been in operation or how big your business is. However, for small businesses, if your business isn’t a household name, finding customers can be particularly difficult.
How to fix it:
Finding customers starts with figuring out who your ideal customer is. Not every person you encounter is going to be the right fit for your company’s values and culture. You need to get the word out about your business to the right people. Sometimes this starts with figuring out what your own company values are. Figuring out what you bring to customers that others just don’t is what’s going to bring the right people to the table.
2. Hiring the Right People
Your employees are the backbone of your business. Without them, you wouldn’t be able to do what you do. Getting the right people into your organization is where a lot of small businesses struggle. The average cost of onboarding an employee is over $4,000, so finding people who are really excited about what you’re doing matters.
How to fix it:
First things first, get out of a short-term mindset. Taking the extra time to find a great employee versus settling for a good one will help your company get to the next level. You also need to take into consideration what’s going to attract and maintain top talent for your business. Is it your employee benefits packages that rise above your competitors? Or is it your cause that really speaks volumes to the type of atmosphere your business fosters?
3. Balancing Quality and Growth
Every business should have a growth mindset. If you don’t, not only will your business stay stagnant, but you could lose ambitious employees along the road, too. A growth mindset is what fosters innovation, leadership development, and a culture that everyone wants to be a part of. But if you grow too quickly or don’t balance quality along with growth, you could also do some damage to your business.
How to fix it:
Instead of focusing on every little detail, try tuning into the right details. Business growth is going to happen, as long as you create the right environment for it to. As your business grows, you need to be honest with yourself and your employees about the direction you’re headed and what that means for the quality of work that needs to be done. Before the growth period, you usually have a good idea of what’s flowing in and out of your business. As you grow, be sure to not overlook the components of your business that might need to change as you grow to keep your business healthy – like your insurance policies.
4. Choosing the right Insurance Agency
No matter what industry you’re in, there will be times where you hit a rough patch. During these times, your business will need a crutch to lean on in order to keep going while it heals – and that’s exactly what business insurance does. Too many small businesses choose an insurance agency at random, hoping that they will fit their needs year-long based on one simple meeting. Unfortunately, those are the same businesses that fall into the 80% that don’t make it past 10 years.
How to fix it:
Take the time to do your research. Revisit the values you had set for your business, and what you need out of an insurance agency to be able to hold true to those values. Many people think that insurance agencies are only there for a quick business-to-business interaction and then you never have to hear from one another again. That’s not what you want for your business. Find an insurance agency that wants to act like a part of your team, and will be transparent about all of your insurance costs and needs – like Snellings Walters.
At Snellings Walters, we’re about more than just insurance. We care about helping you find coverages and policies that best fit your business’ needs based on your values. For us, transparency is key, so we’ll give you the keys and knowledge for better outcomes. We’d love to work with you to help you overcome any of your small business challenges, reach out to us here, or give us a call! 770-637-1734