1. Lakesia Wright shares Small Business Development challenges and tips:
Based upon my research and business observations as a Business Development
Sales & Marketing Professional, working in the consumer provider industries,
here are the challenges that small business face and business failures not
caused by natural catastrophes, legal or family issues such as death or divorce..
1. Poor Business planning - The lack of a strategic business plan to help focus on
vision, mission and goals and the lack of how to develop a business plan.
2. Inadequate Funding- The lack of adequate startup capital that has not
included enough money to live for one or two years without income when
getting the business started. Speak to your local credit unions and other lenders
about financing options for your business. Some forms of lending may not be
available at your local banks.
3. Very little or No prior business experience - The lack of experience running a
business or in the industry entered. Lack of Market Research and development.
4. Ineffective marketing activities – The lack of a strategic Integrated Marketing
and Communications Planning.
5. Competition – The lack of understanding of whom the competition is and
where your business stands incomparable to the market in which the business
serves.
6. Weak customer service – The lack of commitment to world class and
delivering reliable service to customers in a professional courtesy manner.
7. Poor record keeping and financial reporting – The lack of up-to-date, well
documented financial and business records and no software to back up the
financial data.
8. Niche or Targeted product, services and/or clients. – Small business owners
normally target to one big client, offer one product or one line of service,
rather than multiple lines of products and services and diversification, which is
imperative to a business survival.
2. 9. Opportunistic marketing – Entrepreneurs often get excited over any new
opportunity or product and start pursuing a new opportunity without using
strategic thinking to test the opportunity against the vision, mission and goals of
the business plan.
10. Poor time management – Lack of discipline and commitment to do tasks
that need to be done on time and failure to adapt the necessary time
management business tools for more efficiency.
11. Poor quality – Lack of business standard for quality of products and services.
12. Fatigue/ stress /Burnout – Owning a business with a significant investment of
time, money, energy and emotion results in working long days and not taking
time off. And not balancing your business life and your personal life will cause
burnout and cause your motivation and creativity to suffer while increasing your
stress levels.
13. Lack of Emotional Intelligence and Interpersonal skills
14. Lack of Understanding of how to develop a Marketing Analysis , Marketing
Survey and a Marketing Plan that targets the market for which your products
and services intend to serve. Lack of Understanding of your market needs.
15 Lack of Execution of a Sales Plan and or lack of understanding of why you
should have one.
16. No strategy or Networking to build alliances and healthy relationships.
17. Lack of Media optimization (thinking only one category Advertisement.)
18. Lack of Education and or knowledge about the business you are developing
or the product your are selling. (Fly by night) and refuse to pay the fee to hire a
consultant to assist in business development.
19. Hiring all the wrong people to do any job to help you, including friends,
relatives or spouses of friends and relatives. (it’s better you just hire from the
temp or recruitment agency)
3. 20. Choosing the wrong location for a merchant business, such as a store front
away from your target market area. Or the inability to choose a location due to
lack of capital in order to locate your office space.
Your business, no matter how small it is will need an organizational plan.
The organizational plan outlines the key members their duties and their
functions.
Key Members affiliated with a business plan normally have cross functional roles,
however most roles can be easily identified. A small business organizational plan
normal consist of the following key members, the General Manager, Operation
Manager Administrative Manager, Sales Manager and Marketing Manager,
Research & Development and Logistics.
Key Members must be identified as each offers special skills, talents,
qualifications and abilities in contributing to successful development of a
business.
Depending on the scope of your business key members should have some
minimal experience in each category unless on the job training will be provided.
When hiring, Human Resource managers should be very specific as to how the
candidate will learn the companies products, services, and policy rules and
regulations.
In order to operate a small business in an efficient manner, it is imperative to
adapt company policy rules and procedures within all departments
Once you have determined that your business fits into one or more of any of the above in your business
or organization you will need to discuss what it takes to turn your business around, your should contact
your nearest local business development consultant You may need to consult with the following
professionals and more than once a Lawyer, Accountant, Insurance Broker, Real Estate Broker, Financial
Investment Advisor.
