The 5 Common Challenges Faced by Businesses Today

With the speed of economic developments and technological innovations, managing a business today is definitely not as simple as in the past. Big or small, local or international, businesses are facing the same issues. The following are five of the common challenges faced by businesses today.

1. Cash and Resource Management

In any business or organisation, cash is king. It is of vital importance to the health of a company; it helps maintain the flow of labour, services and goods that are crucial to business operation. A company will not last long without cash; it will not be able to buy, sell and provide products and services to its customers. But too often, executives and entrepreneurs fail to focus on their cash flow, putting their attention and effort more on the profit portion of their financial statements. For companies to deal with this problem, they must have adequate capital and must be able to shore up cash reserves in order to meet all their obligations as well as handle downturns and emergencies when they arise. They must also implement good cash flow management strategies. This may entail implementing strict policies with regard to capital expenditures and receivable collections and hiring professional help to handle taxation, cash management, bookkeeping and accounting. This may also mean establishing good credit performance with lenders and banks for faster approval of loans.

To effectively deal with your company's financial-related problems, check out the following companies:

  • Bibby Financial Services - a cash-flow expert and business finance specialist serving small and large businesses across Australia
  • foxdavidson - a market mortgage broker providing expert, innovative and independent mortgage advice for property investors
  • Smartline Mortgage Brokers Adelaide - the Mortgage Brokers at Smartline offer expert advice on everything from Loan Appointments to Applications.

2. Integrity

In today's global economy, businesses are struggling to be more successful, to earn bigger profit, to attract more customers, or to ride out competition. Along with these challenges is the temptation to omit information, cut corners and take whatever means necessary to get ahead. And sadly, many companies have allowed themselves to make a few compromises in their business integrity, and people have started to believe that lying little or stealing a little is just normal in business.

These belief and practices can erode the trust between employers and employees, executives and shareholders, and between business partners. And without that trust, the organisation will not have a solid foundation and will eventually fail.

3. Increased Competition

These days, competition exist both offline and online. Businesses are not only competing in the physical marketplace but also in the virtual world. Dozens of new businesses are popping up every day. Gone are the days when getting a company started would take weeks and months and would require a myriad of forms and requirements. Today, anyone can start a business by simply getting a domain name and registering the business online. The internet has levelled the playing field for companies both large and small, making it rather challenging to attract and retain customers. The good news is, this challenge is unconquerable. Business magnate and investor Richard Branson has a few tips on growing your small business and surviving the competition. Check it out and see how you can apply it in your organisation. You might also find the services of the following specialists helpful:

  • Green Lettuce - specialises in designing and delivering bespoke business insight, social media know-how and executive coaching
  • MW Serviced Office - One of the things that can give your small company a professional image.
  • Gordon Executive virtual office - acquire if you want to give your home-based company a prestigious business address.

4. Customer Loyalty

Along with increased competition is the challenge to attract potential customers and retain the existing ones. Social media, email, text, and other communication channels are making it easy for your competitors to deliver their marketing messages. But you can use the same technology to engage your target market. The key here is identifying the most effective marketing channel to connect with both your potential and existing customers, and figuring out the most effective strategies you can use to keep. You can begin by knowing who your customers are, understanding what they want, and doing a better job (than you competitors) of meeting their wants and needs.

Of course, it wouldn't hurt to find ways to improve your company's efficiency too, especially since this has a huge impact to the level of service that you give to customers, which is a strong determinant of loyalty. Look into these options and see how they can help you achieve your efficiency goals:

5. Regulatory Compliance

Before, regulatory pressure majorly came from the government before; today, it comes from various sectors. For example, there's the increasing demand from customers and shareholders for a green initiative within the organisation; there is also the threat of increased cost due to carbon taxes from the revenue bureau. Then there's also the demand for product safety, fair trade competition and free flow of truthful information.

There are a number of regulatory challenges facing businesses today. The first step to addressing them is understanding the meaning of the implemented regulations in your industry, its effects on your business, the skills you need to develop to deal with it. For instance, if work-related injury or illnesses are inevitable in your business, you may want to consult with health and safety experts for advice on how to avoid future incidences. Your employees might seek the help of personal injury experts like to help them make a claim, so it might also be a good idea to consult with these solicitors for advice on how to compensate employees properly or how to help them in order to avoid serious legal problems.

So, these are the five common issues facing businesses today. Have you encountered them in yours?