Congratulations! You have launched your business, which is an accomplishment in itself. Yet the work is far from over. As an entrepreneur, you are constantly engaged in building your business and increasing your revenues. You will encounter many road blocks. Here are the 5 biggest obstacles impeding your small business income:
1. Acquiring new customers
We all have heard that people do business with people they know, like and trust. Yet to grow your business, you have to attract, convert and close new customers that do not know you and have no reason to trust you. “Anyone interested in my services” is too general of a statement. By targeting a specific audience, you are not excluding people, rather focusing your resources and energies at a higher level to attract a market that is more likely to buy from you than any others.
2. Honing in on your competitive edge
When looking at your competitive advantage, you inevitably compare your products and performance to those of your competitors. Yet spinning your wheels searching for all the ways that you are “better” will not advance you very far. Your distinction is not defined by your competitors but by your best customers. These are the customers for whom you made a difference, for whom you were the only answer. Learn from them.
3. Undervaluing your product/service
To grow their market share, small businesses often sacrifice their revenues by undervaluing their products/services to reach a wider audience. Such tactic requires patience and a lot of capital for no guaranteed success. A more sustainable route to build your business is to create more value for your customers by refining your unique selling proposition.
4. Learning new technology
As an entrepreneur, you are constantly on the move, adapting to the changes in your customers’ behavior and your industry, always learning new things. The same goes with technology. In today’s business world, major challenges are resolved through technology. Embrace the tools that will make your organization stronger, whether it’s a shared calendar or a business intelligence tool supporting your next level.
5. Investing continually
It is very tempting to sit back and count your profits! But no matter how successful your business is, thriving organizations require constant investment. At some point in time in your company’s life, you will require additional employees, new infrastructure, new technology, etc. Plan for it!
Author: Carine Dieudé, Partner, Director of Strategy, specializes in growth and exit strategies, systems and operations, for small and medium size businesses.
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