Pitfalls You Can Fall Into When Running A Business

If you are trying to set up a business then you may already know how tricky it can be. There is no quick and easy way to set up your very own company. If it was easy then everybody would be doing it. However, it also doesn’t have to be impossibly difficult. If you take your time and get everything right from the start then you and your company could stand the test of time.

It is a well known fact that as many as 90% of new businesses don’t make it to their fifth birthday. If you don’t want this to be you then check out the article below.

Running Out Of Money  

If you are just starting out then you should make a list of everything you need to spend money on, even the smallest things. This may be a long list and some of the things on it could surprise you. The biggest challenge any business has is making money and profits before the starting funds run out. If they do happen to run out then time is also running out for your company. 

If you don’t have the money to fund your business right away then you may need to apply for a business loan. This will tide you over until you start making the big bucks. Overestimate how much you need rather than underestimating. You will need to successfully apply for a business loan and this means having a strong credit rating. The bank will be reluctant to lend money to someone who has a poor credit history as they need to be confident you will make the monthly repayments. 

High Employee Churn Rate

Another issue you can run into when running a business is a high employee churn rate. This happens when employees come and go within quick succession of each other. Not only can it be detrimental to your business, but it can also damage staff morale. High churn rate becomes a problem as you need to take time out from working to hire new people. Like everywhere, time equals money. You will be losing money each time you need to hire someone new and this will never be good for business. 

When it comes to finding the right people to hire, think carefully about what attributes and skills you want them to have. This could be experience or qualifications in the chosen field, accounting for instance. Try and include a mix of experienced and inexperienced individuals when creating your team. On their own they could struggle but as a team it could be one of your greatest achievements. 

Lack Of Customer Care

One thing that can leave your business in the mud is customer service and customer care. If you don’t help your customers with aftercare or even pre care then they may take their custom elsewhere. If they come to you with a question or query then make sure you or a member of your team are taking the time to reply. This could be via email, chat bot, or phone call. That 5 minutes you take to help could end with a returning customer for years to come.

If you don’t have the time to do this yourself and your employees are dedicating their time to other areas of your business then you might want to hire a dedicated customer services team. They will be in charge solely of the customer service that your company offers and nothing else. Gone are the days of your customers and clients waiting 24-hours for a response. 

Another thing you might consider is how many customers check reviews before shopping with a new business. The amount is astounding, around 80%. If you have any negative reviews floating around regarding your company then this could cost you. Ensure you take the time to respond to all reviews, including the negative ones. This shows customers you care what they think about the products, care, and services you offer.  

Leaving The Tech Behind

What is the one thing that customers get frustrated with when it comes to contacting businesses? Being told to wait as the systems are going slow. This happens when the company is using outdated tech to try and run a multitude of systems and operations. It can be pricey getting brand new technology for yourself and your staff, however, it can be better in the long run. You don’t always have to buy it brand new, you can always get recent second hand tech. Look out for offices and other businesses closing down and selling all their goods. 

Another thing you need to think about is what software you are going to use to help you get ahead of the game. For example, if you are a plumbing business then there is various plumbing software that will ensure you can send invoices and book clients with ease. 

Getting The Marketing Wrong

One area that should receive more attention than the rest is marketing. Without the right care and attention in this department, your business will come tumbling down. Marketing is the one area that should be at the top of your budget list. It will take the biggest chunk of money but that is normal and what should happen. Without marketing you will struggle to get the right level of customers and clients on your books.

There are so many marketing techniques that you can use to enhance your business. Leafleting may be old school but if you are working in a neighborhood then it could really help you. You could also use email marketing if you have a list of potential customers and clients. One of the best options that many businesses utilize is social media. This is free and can offer you a huge following, Facebook alone has 3 billion monthly users.

We hope this gives you some reassurance that you are doing the right things and taking the right steps when setting up your business. Remember, there will always be hurdles that you have to overcome. How you get over them is up to you, but don’t let them defeat you and take your business.

This is a contributed post.