Only 50% of new small businesses make it to their fifth anniversary. After that, only one-third of new enterprises survive to reach ten years. Below are five common ways small businesses tend to struggle and solutions to combat these common pitfalls.
1. Poor Marketing
Many small business owners encounter trouble when attempting to engage in digital marketing. There are many reasons why some businesses struggle to bring new customers using digital marketing. The most common marketing problems these businesses face include difficulty distinguishing and reaching their target audience and creating a profit after paying for advertisements.
Creating and executing a successful marketing plan is essential for businesses to prevent the above difficulties. Some marketing areas that businesses may want to focus on include:
- Market Research: Identify gaps and opportunities in the market your company can provide for, and stand out from the crowd of competition.
- Creating Quality Content: Company content should emulate the company’s voice and reflect professionalism and experience in order to reach and engage its intended audience.
- Offers and Incentives: Offers are an excellent way to generate interest in a company.
- Future Objectives: Outline realistic goals for the weeks, months, and years ahead to keep your employees motivated.
2. Complex Branding
Forbes revealed that consistent branding across all marketing channels can increase business revenue by 23%. Examples of poor branding include using complicated company names that are difficult for customers to remember or understand. Further, inconsistent branding confuses customers and is unlikely to stimulate repeat business.
3. No Online Presence
Companies with a weak or non-existent online presence will obviously struggle to reach, engage, and retain customers. A business’s online presence should be accessible, attractive, and user-friendly.
4. Lack of Cybersecurity
Cybercrime costs small and medium-sized businesses more than $2.2 million a year. Hackers cause businesses to lose credibility, tarnishes your brand, and decreases profits.
To resolve or prevent a PR disruption, increase your cybersecurity and let your customers know that their data is in good hands. With an abundance of IT providers across the world, there are many options to choose from.
For instance, this Ventura Managed Services Provider prides itself on providing exceptional service to businesses by offering advanced solutions to safeguard company data from cyber attacks so that businesses can continue to operate without worrying about a data breach.
5. Poor Customer Relations
Bad customer service leads to unhappy clients who can damage your reputation and affect profits and customer retention. To ensure positive reviews and customer service, consider starting the following business practices:
- Hire talented and experienced staff with extensive previous customer service experience
- Train existing employees on customer relations techniques and etiquette
- Create a healthy and happy work culture
As your company considers these causes for why you might be struggling and strategies to repair those issues, you can succeed as a small business. Considering your marketing, technology, and customer needs will help you get the foot hold you need to stay strong for years to come.