Small businesses face a variety of problems throughout their first few years of business. Some are more difficult to overcome than others.
According to the US Bureau of Labor Statistics, over 20% of small firms fail within their first year. By the end of their fifth year, half of them have failed, and by the tenth year, it’s up to 80%.
With those survival statistics, it’s easy to see why many are nervous about their first few years in small businesses. However, many common business issues and challenges can be resolved. Taking a step back to examine your pain spots and rethinking your strategy is a common occurrence.
In this article, we’ll look at some of the most typical problems that small businesses face. Along with tactical suggestions on how to correct problems
1. Finding Customers
This isn’t only a problem for small businesses. Marketers at well-known companies such as Apple, Toyota, and McDonald’s don’t just sit around waiting for leads to come in; even the largest, most successful businesses have individuals working hard every day to discover new customers.
However, the difficulty is even greater for small enterprises. When you’re not well-known, how do you find customers? And, with so many recruitment channels to choose from, how do you choose which ones to prioritize?
Furthermore, acquisition expenses are extremely high, and tiny enterprises may not have the same financial resources as larger, more established companies. In truth, the price is quite high.
How to Fix It:
Identifying your target consumer is the first step in finding customers. Spraying and praying aren’t going to get you anywhere; you need to make sure you’re reaching the correct individuals.
By creating a customer profile, you may get a feel of what your potential customers look like, what they do, and where they spend time online. This free guide will help you through the process and offer you customizable templates to fill out and portray your target clients.
Creating extremely specialized templates can increase your business results substantially. After you’ve created your personas, you can start developing content tailored to your target audience and distributing it through the channels you know they use, with the messaging you know they want to hear.
2. Increasing Brand Recognition
How will your customers buy from you if they don’t know who you are? According to statistics, 70 percent of brand managers believe that establishing an audience is more valuable than direct sales in terms of success, and as a result, marketers in 2021 indicate that building brand awareness is their key purpose for running marketing efforts.
This focus is largely due to the fact that increasing brand awareness helps to establish trust with your audience, as well as help them identify your brand with your products and services, all of which help to boost sales and build a loyal client base.
As a small business, it might often feel as if today’s largest names appeared out of nowhere. How did they get so well-known?
Of course, the majority of these businesses’ hard labor, failures, and rejections took place behind the scenes. There are, however, ways for getting the word out about your business and establishing a strong reputation that you can adopt right away.
How to Fix It:
There are a variety of strategies to raise brand recognition, but I’ll focus on three here: public relations, co-marketing, and blogging.
Public relations is more about focusing your voice and finding your place in the market than it is about paying for a slot on a news site. I recommend reading FirstRound Capital’s excellent piece on what startups and small businesses frequently get wrong about public relations. The article also gives some practical advice on identifying who is covering your sector.
- Co-marketing:Collaborating with another brand allows you to absorb some of their image and reputation while also generating brand evangelists outside of your immediate circle. It’s an excellent technique to supplement your organic marketing efforts by gaining a large number of new contacts.
3. Create an Email List
You must establish trust by continuous feeding, keeping top-of-mind, and offering value along their buyer’s journey to eventually become your customer. One of the greatest ways to do this, according to marketers, is to get prospects on your email list.
Email marketing is still the most effective marketing channel, with a $42 average return on investment for every $1 spent. Furthermore, 59 percent of customers believe that marketing emails have a direct impact on their purchasing decisions.
Despite these figures, the average email marketing database declines by 22.5 percent annually. It is your job as a marketing team to identify ways to keep your email list up to date and add new contacts on a regular basis.
However, what many individuals describe as “developing an email list” is actually “purchasing an email list,” which is never a good idea. but it’ll also impair you’re having an appropriate IP reputation. If your current strategy is to buy or rent email lists, it’s time to rethink where you’re putting those funds.
How to fix it:
Instead of buying or renting email lists, create opt-in email lists. Subscribers who willingly give you their email address so you may send them emails make up an opt-in email list. These clients are already interested, and engaged customers are more likely to buy, especially when it comes to cultivating.
4. Generating Leads:
Another issue that most small businesses have is lead generation, or more especially, producing enough leads to keep the sales team satisfied. Marketers agree that this is a top goal, yet 58 percent say lead creation is a major challenge for business leaders.
As a result, creating leads that are both high in quantity and high in quality is a critical goal. While you sleep, a successful lead generation engine converts website visitors into potential customers and produces a continuous stream of sales leads.
To make the lead-generating process work for your company, you must first improve your current website for conversions. Your website is the most important tool you have for converting visitors into customers.
Finally, free lead management software and apps for startups should be developed. Finding and using the most complex free marketing tools can be a game-changer. Able to afford marketing, in general, is a huge issue, so finding and adopting the most robust free marketing tools may be a game-changer.
5. Adding Value to Customers
Customer satisfaction is a nice idea, but engaging customers is much better:
Clients are invited to make extra buying when they have a positive service experience, and loyal customers spend more when they have a positive service experience.
Satisfied consumers use word-of-mouth marketing to help you get new clients for free. It is less expensive to keep an existing, satisfied customer than to find a new one.
Unfortunately, as a small business, you must live up to expectations and provide an unparalleled experience to achieve true customer happiness and turn your consumers into brand promoters.
How to Fix It:
Continuing to solve for your consumer in a way that converts them into loyal followers takes effort. Here are some suggestions to help you get in the appropriate frame of mind:
- Recognize why your clients choose you and what they require.
- Set clear expectations at the start of the engagement and make sure they’re met (and your customers’ needs are met).
- Think of new ways to provide unexpected extras that go above and beyond the call of duty.
- Continue to track client happiness and make improvements.
It will pay off if you understand your consumers’ wants and expectations, as well as respond to their desires.