Small Business, Big Opportunities
It’s a fact, according to the Small Business Administration: 30% of small businesses fail in the first two years; 50% in the first 5; and 2/3s are gone before their 10 year anniversary.
Why do entrepreneurs struggle so much, when the opportunities seem endless?
Here are just some of the challenges small businesses face:
Weak business plan
- This can include a poor understanding of the current market factors for a given business, its location, or its customer base. Does the business answer an unmet service or need? If it’s entering a crowded space with many quality alternatives available, the business may be doomed before it begins.
- Behavior-based market research is key to a strong business plan.
Not enough financing
- Starting a business means investing in a business. If a company doesn’t have the resources available to hire the staff, purchase products and services, and offer swift, high quality customer service – it's likely that company will be one more SBA statistic.
- Use that strong business plan to engage investors.
Expanding too quickly
- This can spell financial disaster – expansion can eat up precious resources and can also set a company up to fail from a customer service perspective. Often companies feel compelled to expand because they want profit expansion – but it’s better to expand slowly and successfully than quickly and unsuccessfully.
- Don’t expand for the sake of expanding, and make sure current customers continue to get the same excellent service.
- Once a business hits its successful stride, management often sits back and enjoys the ride. This is a common failing for big businesses, too, but they usually are better capitalized and can put money into switching gears when they realize they haven’t been proactive enough.
- Stay on top of new trends and business outlooks.
Weak sales and marketing
- If you build it, but you don’t tell anyone about it, they won’t come. That’s the reality, and many companies fail simply by not letting the right people know that their products or services exist. Creating a compelling personal connection with prospects, and an enduring relationship with customers, is key to small business success.
- Use automation to nurture prospects, effectively target customer retention, and stay close to top customers.
How can you say good-bye to small business failure and take advantage of the opportunities you see in your marketplace?
With behavior-based programs and automation. Powerful CRM systems are now available and affordable for any business and can power your most important asset – your customer base.
Many small business prospects are slow to convert into customers. Don’t chase new leads at the expense of your current customer or client base. With an effective CRM, you can easily, automatically, and inexpensively nurture your leads over a long period of time while you concentrate on delivering to and serving your customers.
Looking to make the right moves in your small business? Read about the 4 Reasons Small Businesses Will Be the Big Winners in the Next Wave of Tech Innovation. And get in touch with us to share your feedback.