All businesses face challenges, but it’s how you respond to and overcome those challenges that dictate whether or not your company will remain afloat. Here are some common business challenges and how to tackle them.
Cost of Living Crisis
Running a business can be tough at the best of times, let alone during an ongoing cost of living crisis. If your business has been hit with rising costs and falling profits, there are a few things to consider.
Physical premises need to be working harder than ever for your business to justify the associated costs. Rising rents and energy bills mean that many businesses have had to downsize their space. If you have an office or shop space, you should evaluate how well it’s working for your business and whether a move to smaller premises might take some of the pressure off.
Some service businesses with remote or hybrid employees are getting rid of their office space altogether, and switching to an entirely remote way of working or using hot-desking or coworking spaces to their advantage.
Improving business efficiency is another way to reduce costs. Look at your current systems and ways of working and identify places or times when time or physical resources are wasted. This can be anything from unnecessary meetings taking employees away from important tasks or wasted energy from lighting or heating empty rooms.
Increased supplier costs can also negatively impact profit margins. Shop around for the best possible price and don’t be shy about negotiating, particularly if you’ve been loyal to a supplier for a long period – if they value your custom, they may show more flexibility.
Finding the Right Talent
Though the UK job market is increasingly competitive, many job vacancies remain unfilled and finding the perfect talent remains a challenge for many business owners.
To attract the right candidates for your company, you should have strong, accurate job adverts that clearly define the role and any essential criteria that candidates should meet. You should utilise multiple platforms to advertise vacancies to give your advert the best possible chance of being seen by your ideal candidate. Ensure that you’re offering a competitive salary and highlight any additional benefits.
Recruiting new employees can be an arduous task that diverts your time and energy away from other aspects of the business, but a human resource management system can help you manage recruitment.
Meeting Customer Expectations
As the market offers more options, it’s increasingly difficult for businesses to meet customer demands. If your customers aren’t fully satisfied with the service they receive, they’re more likely than ever to not come back or to switch to a competitor. Regular customer surveys provide insight into the customer experience, allowing you to get direct, timely feedback and implement changes to your products or services as appropriate.
Motivating Staff
It’s natural for individuals to go through periods of high, and low productivity but in order to keep your business running at 100% you want your workforce to be operating at their best as much as possible.
Taking care of your employees is vital and helps prevent issues such as workplace stress and burnout, which can lead to absenteeism, and high staff turnover. Ensure your business is a happy place to work by providing your employees with a pleasant working environment and clear channels of communication. Make sure that your staff know they’re appreciated by expressing your gratitude both informally, for example, praising them on a task well done, and formally, with employee awards or reward systems.
Retaining Customers
Making one sale or securing one contract is great, but what you really want – and what will ensure your business is successful long-term – is repeat business. Encourage customers to return time and again by offering loyalty schemes or discounts. Showing appreciation for your clients can also increase your customer base through all-important word-of-mouth recommendations.