2019 is in the history books and in spite of an improving economy there are many continuing issues facing business today.
Here are a few that as owners you may wish to address as you strive to grow your business.
Cash is hard to get and there is never enough. If you are a fast growth company you can rapidly outgrow your available sources, if you are an underperforming company you can’t get it. Many companies don’t manage it well.
Businesses often experience some problems getting paid on time by their customers and with debt recovery. Good credit control helps to prevent this becoming a serious problem.
2. Lack of a Clear Plan
Most businesses don’t know how to plan. Lack of a plan worsens the cash problem by wasting cash chasing tempting diversions, and throwing money at problems. Equally important is revising your plan according to changing economic and business conditions and to ensure your survival in weaker economies.
The pace of technological improvement is running at an exponentially increasing rate. This pace makes capital investment in technology as much an asset as a handicap because a competitor may wait for the next-generation technology, and then use it to achieve an advantage. The ability for even the best of technologists to stay informed about emerging technology is in conflict with the need to master a company’s current technology. The problem to be solved is to develop a long-term technology strategy while remaining flexible enough to take advantage of unforeseen technology developments.
4. High Overhead
Overheads are one of the biggest small business challenges, and excessive overheads have driven many otherwise good companies to the wall. Resolving them involves paying close attention to what customers actually want and providing products or services sharply tailored to suit. And don’t forget to ask yourself hard questions, such as whether you need that new car or printer, or whether it’s just for show…
5. Ineffective Leadership
This issue takes many forms and is frequently in the form of depth of leadership. The founder of the company is too much hands-on and a) does not concentrate enough on his primary role as a leader rather than a manager; and b) fails to enlist support of competent managers and staff either through recruitment or by outsourcing. This eventually causes the company to stop growing and even leads to failure.
I trust these ideas provide thoughts to resolving some issues faced daily by many businesses as they strive to develop and grow.
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