The world of commerce is undergoing changes; we live in a digital age and businesses are more efficient than ever, yet it isn’t all plain sailing, as we highlight some of the challenges that small businesses encounter here in Australia.
Sales & marketing
Every sector is highly competitive and to be successful, you need to offer a complete package and that means having a marketing plan that effectively targets your audience. Spend time identifying your target groups and figure out the best online platforms to reach the consumer; don’t make the mistake of thinking you can manage without digital marketing, you can’t. Social media offers unlimited marketing and branding potential and every business owner should generate a strong digital profile.
Cashflow problems
Unpaid invoices cause serious issues for a small business with very limited resources and the best solution is to engage the services of a debt collection agency, a company that recovers debts with integrity and only takes a small commission on funds recovered. Litigation can often be avoided by using an established debt recovery agency, a transparent organisation that delivers results. There is no joining fee and they only get paid when they recover money for the client. Transparency is important in this industry and you won’t have the worry of chasing outstanding debts.
Rising costs
The rising cost of living hurts the small business; it is difficult to make a profit when all costs are increasing at an alarming rate. This forces a company to increase their prices, which makes them less competitive and companies are competing fiercely for their market share. This can affect customer service, which can lead to loss of business; if your expenses are becoming too much to manage, you might need to seek financial support, at least until things improve.
Compliance
Governments create a lot of red tape that businesses have to deal with and that can drain their limited resources; heavy fines are regularly issued by state officials and business owners worry about breaking the many rules and regulations they have to comply with. If you are in a niche market, here are a few valuable marketing tips to help you get your message to the right people.
Staff
It used to be easy to hire the right people, yet many small businesses are desperate for specific positions. Rates are high and top professionals expect a good package, which some small companies simply can’t offer. You may have exceptional employees and they are poached by a rival because they offer wages that would break your business. Online recruitment agencies help businesses by headhunting management and you should be registered with the top agencies that service your sector.
To conclude, there is a risk of a global recession and Australian businesses have many challenges; rising inflation is also concerning; we can only hope that things get better and the economy strengthens.
