How To Fix Business Challenges In The 21st Century
According to the Bureau of Labor Statistics, 20% of upcoming companies and or businesses fail by the end of their first year of establishment. By the end of their fifth year, 50% of the businesses go under and by the tenth year, the number of failed businesses often grows to 80%, says the federal bureau. Normally, people won’t really care. You may not notice the significance of these figures until you start a business of your own.
The truth is that there are business struggles that are common and almost inevitable when starting. The most common business struggles companies often face when starting include access to financial and human capital, client reach, brand awareness, and establishment of customer loyalty. You may relate, for most starters, the inevitable concerns are where to get capital and the clients.
You may also want to argue that despite the fact that most of the so-called established businesses out here have little issue with capital and clientele, some of these business struggles are not unique to startups. Business challenges in the 21st century are more cross-cutting than unique. For the more established companies, the concerns are management, uncertainty, and increased competition. And on top of that, people in the 21st century, because of the on-going pandemic are unpredictable. Let alone the effects of climate changing constantly and other current social and cultural issues.
You may not notice the significance of these figures until you start a business of your own – sounds like there’s no hope. The struggles and business challenges in the 21st century indicated are all fixable.
1) Access to Capital
There’s great emphasis on capital when starting a business. It is indeed a significant requirement. What many forget is to have the right estimation, which should often come in a business plan. In most cases, a good business plan alone should be able to get you funding from financial lenders and similar bodies. You may however want to start with the support of people with special relations like friends and relatives though.
2) Access to Market
Without customers, you have no business. The mistake most starters often make is to assume there is a ready market where people automatically patronize their business. The truth is that the well-known and established companies like Apple, Toyota, and McDonald’s have not clients just coming to them. They are constantly out seeking new clients through their various sales representatives.
For startups, it helps to identify a niche and spread the word out. Because the number of people all over the world keeps growing, it’s essential to constantly seek new customers and potential clients for your business. Especially that our technologies are continuously advancing, it’s one of the best opportunities for business starters.
3) The Right Staff
In as much as establishing a successful business involves the availability of clients and having sufficient funding in terms of capital, the essence of having the right staff or employees in organizations cannot be downplayed. In as much, it’s often treated casually, hiring is never easy and should always attract a considerable amount of time and resources. For small enterprises, it can be quite costly, which is why it helps to consider offering short term contracts. You may also want to ensure those you hire are interested in what you do such as people with the same advocacy as yours.
4) Client Loyalty
We indicated brand awareness among some of the most common business struggles. It is a major issue for small-time businesses. This is because often they do not have enough resources to buy ad spaces on print and broadcast media houses. To overcome, you can always go for social/new media platforms. Customer loyalty is another concern. It takes more time to build but surely possible.
As part of business struggles & challenges in the 21st century, management, uncertainty, and increased competition are major concerns. To fix the same, train well your staff and organizations, and keep in touch with various stakeholders. Also, look into hiring a digital marketing agency if it’s within your budget. But most importantly, being an efficient leader in your respective sectors and having the abilities to make good decisions are all parts of it.