According to the Bureau of Labor Statistics, 20% of upcoming companies and or businesses fail by 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. 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.
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.
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 friends and relatives though.
Without customers you have no business. The mistake most starters often make is assume there is ready market. 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.
In as much as establishing a successful business involves availability of clients and having sufficient funding in terms of capital, the essence of having the right staff 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.
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 keep in touch with various stakeholders. Also, look into hiring a digital marketing agency if it’s within your budget.