As per the recent economics statistics report, the SME costs are expected to encounter an abrupt increase by £6.8bn. Reportedly, this is because inflation in the UK is projected to rise by 2.7 per cent this year. Besides, a survey conducted of late, by the Federation of small businesses (FSB) states that more than a third of small business firms expect to see their business costs increase from April 1st 2017.
“Alleviating many of the up-front costs facing companies should be a priority for the Budget in March”- Adam Marshall,director general of the BCC.
Now, for your business to sustain such inflation, it’s essential that you know the potential problems which are most prevalent among small businesses. Here are the 5 common pitfalls that’s sneakingly devouring your business and skyrocketing your operational costs:
When there is no defined structure in your organization, it becomes the most critical bottleneck that deters your business from achieving its goals. For the workflow to flow seamlessly, it’s essential for your business to have a specific structure of how people interact with each other and with the systems, to attain the end goal.
- Chaotic organizational structure:
Suggested solution: Implement an effective system that monitors, prompts and ensures consistency in the workflow.
For any business, communication is its best friend and “mis”communication is its worst enemy. Imagine a team of 10 members working concertedly towards a business goal. If one member fails to communicate or if it does not reach the right way to the other, it deters progress & impairs desired growth, if left unaddressed. According to Holmes report, around $37 billion are lost yearly due to employee misunderstandings and bad communication.
- Miscommunication-An organizational cancer:
Suggested solution: The optimal way is to keep the team communication systematized, tooled and transparent.
Process efficiency is the crux of any business and is directly proportional to its success rate. Trying to streamline the processes manually is going to consume more time than you could ever imagine. At the end of the day, all you would do is try to figure out the nub of the problem and end up doing nothing, but leave your business in a vulnerable ply. Manual process management would fetch you no ROI. Conversely, it’s going to eat up all your time and money, leaving the processes at stake.
- Inefficient business processes:
Suggested solution: Automating your business processes would be the best way to monitor, derive insights and optimize them, thereby finding leaps and bounds in your productivity.
The primary source of long-term revenue for any business is its customers. If your customer support is bad, it’s going to badly hit your business. According to a recent study made by Capterra, every year companies lose $41 billion due to poor customer service. By and large, customers across the globe expect an instantaneous response to their inquiries. What if you respond after 2 or 3 hours? Your customer would eventually bid a farewell to you.
- Bad customer support:
Suggested solution: Streamlining your customer support process through automation refrains them from falling through cracks.
There’s a myth that interruptive online advertising pushes product to the masses in the most effective way. However, the myth has been busted in a recent study conducted by Markerly, which says that 78% of the consumers believe that the brands which create custom and insightful content are interested in developing a rapport with them. This clearly states that consumers are now seeking insights from your marketing activities. It’s no longer about brands, it’s about how your product solves the consumer problems.
- Interruptive marketing campaigns:
Suggested solution: It’s high-time you re-strategize your marketing activities such that it gives a win-win appeal to the modern consumers and helps you communicate with your potential leads, which ultimately makes them buy your products or services.
There are two pivotal steps to attain a breakthrough. One is acknowledging the problem and the other is solving the same. Now that you are aware of the ubiquitous problems, get these rectified and your business will have every chance of success and persistent growth.