When you are in business, challenges are inevitable; no matter how competent of a manager you are. It is how you handle these problems that sets you and your business apart from the rest.
Here are the 10 biggest challenges that businesses are facing in 2020.
1. International expansion problem
As an ambitious entrepreneur, one of your primary desires is to take your business to a global level, once you’ve secured local footing. However, the challenges of expansion can make it difficult to progress. The most common problems that most entrepreneurs cite regarding expansion include lack of personnel to manage international customers, partners, and other stakeholders. If you wish to go global, you need not fear anymore because there are organizations such as New Horizons Global Partners that specialize in international expansions. Such companies render support from employee management to drafting contracts, including handling all legal responsibilities.
2. Talent recruitment
Imagine securing a big client or landing a profitable project, and yet you lack enough staff to help you execute the work. How fast can you recruit the right talent? Hiring new employees is one of the major challenges that businesses face today. While there are so many people to choose from, you will want to work with the top talent that the market has to offer. Simply hiring anyone will have you spending extra money to train them to ensure they are up to the task.
3. Keeping up to speed with the latest innovations
We live in an age where innovation takes place daily. The challenge with frequent and ongoing innovation is that you are required to be on par with the latest trends. Most businesses get comfortable using older software because learning new ones takes time and may be expensive in certain instances. Unfortunately, there are repercussions to such a choice. Among them is that your venture will develop “false efficiency”, and you risk missing out on opportunities. At this point, keeping up with all of the innovative and latest developments and uncovering ideas that really make a difference in your industry can be quite difficult. However, there are innovative software(s) already on the market that can help companies discover, evaluate, refine, and execute the most impactful ideas from everyone, everywhere.
4. The COVID-19 pandemic
The market arena is an avenue that is constantly changing. The current COVID-19 pandemic has affected the market systems significantly by reducing the demand and supply of goods. As an entrepreneur during these times, you will have to conquer these pandemic-related in order to stay afloat.
5. Maintaining integrity
Everyone in business has, at one time, faced a moral dilemma. In a world where people struggle to meet targets, make a profit, stay in business, and grow, it is easy to compromise your integrity. There are instances when you have to choose between the moral values and beliefs you stand for, and doing something you view as unethical but would potentially save your business as well as other people’s jobs. When you are a virtuous person, such scenarios present you with challenges. Suppose you choose to save your business at the expense of having your integrity eroded; you risk going down a slippery slope. Eventually, your stakeholders lose trust in you.
6. Resource management
Even well-established organizations often face a challenge of resource management. This challenge is aggravated when entrepreneurs give cash flow generation little attention. As a business person, you need to ensure that there is always enough money in reserve to run the business. Additionally, failure to hire experienced and innovative financial experts may be detrimental to your organization.
7. Maintaining clients
The business world is the most competitive field there is. Just when you think your product is cutting-edge, your competitor introduces something better at a more affordable price. Consequently, maintaining your clientele becomes difficult. It takes investing in great marketing strategies for you to stay relevant. You must also continue to reinvent your products and services in order to make them desirable to customers.
8. Uncertainty
In past comparison, the economy is struggling greatly today due to an immense global debt. It is this problem that gives rise to uncertainty. When you have invested your time and money, the most disheartening thing that can happen is losing your business because the economy is not doing well. Uncertainty inhibits growth because people tend to refrain from making long-term goals. The best way to handle uncertainty is by making informed long-term goals.
9. Risk management
There is not a business that hasn’t faced the challenge of weighing risk at some point in time. For you to successfully maneuver through such obstacles, you need to learn how to assess, identify, and mitigate potential risks. When you master the art of risk management, you will have developed robust problem-solving skills.
10. Upholding the business’ reputation
We live in an era where social media platforms rule. When a consumer is unhappy with your services, they often share their displeasure with fellow “netizens”. So, while these platforms are helping to grow businesses, they are also contributing their downfall. For this reason, it is important to stay active on social media, maintaining your business’ accounts as well as the transparency of your organization by interacting with your clientele in a positive way.
Conclusion
Times have changed significantly and the problems facing businesses are dynamic. It takes developing a special skill set to run a business successfully in this ever-changing world.
About the Author:
Connor Jenkins is a business consultant with seven years in his industry. He is involved in organizing and executing assigned business projects on behalf of clients according to their requirements. Connor has a broad knowledge of the many facets of business and market forces, along with great problem-solving skills that enable him to provide solutions and recommendations that will increase business profitability and efficiency.