11 Challenges Every Small Business Struggles And Smart Solutions to Overcome Them

The road to launching a new business might feel like a long journey with unexpected turns and countless hurdles in the early years. 

Whether you're a budding entrepreneur or a seasoned business owner, we all have one thing in common – the struggle to overcome hurdles. Right?

Well, we can understand your concern! You won’t believe that around 90% of Indian start-ups fail within the first five years of launching their business. This is a daunting fact shared by IBM Institute in the year 2021.

But hey, these numbers aren't meant to discourage you. Relax! We're here to highlight the unique set of challenges every small business struggles with. Sometimes, all you need to do is step back and use a new strategy to open the door to success.

11 Challenges Every Small Business Struggles With

1. Finding Your Ideal Audience

Ever feel lost in a sea of potential customers?

This is a big issue that not only happens to small business owners but even big brands like Apple, Amazon, and Adidas.

In fact, getting new customers has become 60% more expensive in the last six years. So, If you're struggling with this problem, you're not alone. But how can you make waves in the vast sea of customer attention?

Solution: The answer is simple! Learn everything you can about your target audience. Use analytic tools to know their interests, interact with them on social media, and tailor your messages to speak directly to their needs.

2. Crafting Your Dream Team

78% of Indian organizations face struggles while finding the right talent. Building a talented team that compliments your vision and abilities can provide you the same happiness when completing a puzzle with missing pieces.

However, it is not as easy as it sounds. The cost of onboarding a new employee is a big problem if you are having budget issues. So, how do you get top players and keep them on your team?

Solution: When it comes to hiring for your company, it may appear easy to post a job, screen applicants, and make a selection. But, because hiring can be expensive, you must spend a good amount of time on the process. 

Establish your brand identity, and find the outstanding ones who will be proud to work at your organization.

3. Increasing Brand Awareness

Getting people to know about your newly launched venture can feel like shouting in a crowd. If nobody knows you, why will they pay attention to your speech?

With limited resources and not being a household name, the competition is fierce. In fact, today’s industry giants also walked on the same path someday. So, what is the best way to get recognized in the crowded market?

Solution: The key lies in the strategic use of social media platforms, public relations, partnering with another brand, and writing high-quality blogs to generate brand awareness. 

Building a recognizable brand presence takes time and effort, but it is an investment that will pay off in the long run by establishing a lasting relationship with your target audience.

4. Mastering the Art of Email Marketing

If you want to turn your potential customers into real ones, you need to always stay in their thoughts. The best way to grow your prospects is by building an email list. This marketing tool can help you earn $42 for every $1 spent.

Despite its usefulness, email lists are shrinking gradually year after year. Avoid buying lists, as it damages your email reputation and is a waste of money.

Solution: Those who are starting a new business must focus on building opt-in email lists. These lists are profitable because they consist of subscribers who willingly share their email addresses because they want to hear from you.

You can also create engaging content on social media platforms or a blog post that encourages customers to sign up for your email lists.

5. Fuelling Your Growth Engine with Lead Generation

This is one of the most common challenges every small business struggles throughout the world. Almost 58% of business leaders consider it a major headache. 

Not every lead may stand up to your expectations and meet the quality. So, how will you face this kind of biggest challenge? Any guesses?

Solution: Take a look at your website and consider whether your pages are like a clear roadmap, guiding visitors seamlessly toward action. Invest in lead generation tools to streamline form submissions into your contact database effortlessly.

Don't forget to optimize important pages like – your homepage, "About," and "Contact Us" as these can help grab the attention of site visitors. You can make use of powerful marketing tools like LinkedIn and HubSpot for quality lead generation.

6. Making Customers Happy

If you want to run a successful business, you need to value the importance of having a happy client base. Customers who are pleased with your service not only make repeated purchases but also promote your business through word of mouth. 

So, how to make customers not just buy but become loyal fans?

Solution: Creating loyal customers requires effort, and here's a secret tip just for you:

Firstly, learn why customers choose you and what they need. Set clear expectations, keep commitments, and meet their needs.

To build long-term relationships, provide personalized experiences to your customers and actively seek their feedback to improve your services.

7. Crafting a Roadmap for Financial Planning

Ah! The age-old problem of money management. You want more resources to improve the efficiency and quality of your business.

Well, if you’re facing this challenge, you are not alone. What about the banks?

Well, they're playing hard to get when it comes to small business loans, with a mere 13.5% approval rate as of March 2021. This has become the top challenge every small business struggles with.

Solutions: To get a smooth cash flow, use your business credit wisely, cut all unnecessary costs, and keep your bills and bookkeeping updated. 

It’s better to hire a financial advisor or accountant who can guide you on how to make smart financial decisions.

8. Improving Your Business Productivity

Now that you've welcomed your dream team, the real magic lies in managing workflow seamlessly. It's about providing your staff with the methods and tools they need to perform their jobs better.

However, as a business leader, you cannot stay present everywhere. So, what things can be done to solve this problem?

Solution: To make your team work better, ask for their feedback by doing online surveys. Find out what's bothering them and where things get stuck. 

Use this info to make things easier. Automate repetitive tasks, and invest in technologies that improve efficiency.

9. Communication Crisis

Have you ever faced a situation when one of your team members misunderstood your message?

If this has happened multiple times, you need to make quick decisions, as it can harm your business reputation. It can impact your relationship with your customers, suppliers, and employees.

Solution: There are many ways to overcome a communication crisis. You can use email newsletters, and social media platforms to stay connected with customers, suppliers, and employees.

Try to get their feedback and actively listen to their concerns, allowing them to address issues proactively and strengthen business relationships.

10. The Art of Scaling Up

Scaling a firm in its early stages is like walking a tightrope—difficult yet important. Some businesses chase rapid growth, but quick expansion means rapid hiring which makes it tough to find top talent.

Similarly, getting major clients is exciting, but handling their needs may be exhausting. So, how can you fix this problem?

Solution: The balance between perfectionism and speed depends on your business's stage. You must pay attention to the right things, i.e., prioritizing customer service over product excellence. 

I am saying this because you can always have a chance to improve your product. Once your product reaches its destination, you will quickly learn what must be done to improve it.

Even Amazon CEO, Jeff Bezos agrees with emphasizing obsessive client focus as the key to long-term vitality.

11. Adapting to Technological Changes

You hired the top talent, managed the finances, and you think you’re done. Wrong! Introducing new technologies is equally important to grow your business.

New tools and trends are constantly popping up, making it difficult for small businesses to determine what is relevant.

You may find it a real struggle when your business might not have a massive budget for the latest tech. But fear not! You can fix this issue easily.

Solution: Stay informed about the latest trends that align with your business needs. Invest wisely in user-friendly tools that provide actual benefits. 

Don't rush; take it easy. Technology is your friend, not your enemy. Making planned and gradual improvements will help you adapt to these changes more easily.

Get In Touch To Overcome All Your Business Challenges

And there you have it, my friends! The entrepreneurial journey is no cakewalk, and these business challenges are the dragons you must battle in order to win.

If you want to be a dominating brand in this competitive market, FavFly will be pleased to help you and all small business owners out there. Whether you want to generate organic leads or build a strong online presence, we can help you the way you need.

Remember, success does not come to those who wait; it comes to those who take smart actions.