“Life is about accepting the challenges along the way, choosing to keep moving forward, and savoring the journey.” ― Roy T. Bennett
Life is full of challenges and in each step, there are obstacles. Some of them are easy to overcome, while others leave scars and help in shaping a better version of us. But in the end, what matters the most is the ways by which we tackle every challenge and achieve our goals.
Challenges are a part of life, not just for individuals but for a group as well. There are groups of people who face challenges as one. These groups can be formal or informal. One of the formal groups of people includes companies and organizations. There are tests in every step for every company. The world is developing, so is the need of society and the people. Businesses need to utilize new technologies, change their decisions on investments and compete on a global stage to meet the demands of society.
There are many challenges that companies are facing at present. One of the main challenges for every company is finding customers. For small-scale companies, this challenge is much more prominent. Additionally, due to high acquisition costs, small companies may not have the same spending power as compared to large, well-established businesses. Increasing brand awareness, lead generation, and positive customer feedback are some of the other challenges faced by companies. These factors are also responsible for the growth and development of the companies.
But is that it?
We often believe in living in the present, but it is of vital importance that we are prepared for the future as well. To improve the economic condition of a company, the leader should have the ability to predict customer trends, market trends, etc. There are innumerable obstacles that any company can face in the future. To defy this, awareness of the problem and preparedness of strategies is important.
Every company faces different problems. With different problems, come different solutions. The solution that might have worked in the past may not provide effective results in the future.
Here are the crucial pitfalls that the companies need to be aware of and the ways by which they can overcome them.
Keeping up with the Market
The market changes its pace every day. There are changing trends, demands, and strategies in the market. Being aware of the changes happening in the market is one of the major challenges that every company faces in the present and the future. Almost 42% of small businesses have failed due to the inability of these companies to meet the demands of the market.
Any corporate growth solely depends on the increase in the generation of revenue brought by new businesses. 29% of businesses have failed due to a lack of finance. Hence, to bring more business to a company, there is the requirement to meet the needs of larger and broad-based clients with varied needs and expectations. The expectations of the clients differ from time to time; hence a company needs to have awareness of the necessities.
Then there are regulatory changes, that companies face when customers or shareholders demand changes in corporate tax rates or increased costs as a result of increased carbon taxes. They force a company to become ‘greener’ thereby affecting their decision-making in the business.
Market research is something that every company should do so they can be prepared for challenges like these. As business conditions change continually, market research should be continuous as well. Otherwise, the strategies implemented by the company would be based on outdated information henceforth hindering any development.
The companies should be in touch with the developing trends and should have a clear picture of what the customers want, how they behave, and which marketing approaches offer maximum profitability. This allows increased customer onboarding. To understand the needs of customers, the process of collection and analysis of maximal client data is important along with well-established strong customer-employee relationships.
Financial Management challenges
Money is a crucial factor for any business. A good cash flow and continuing revenue generation are what every company needs. The key element in business planning includes the best use of finances. Over 90% of the business population consists of small and medium-sized businesses. For them, utilizing limited resources and analyzing new opportunities is necessary. If the need arises, companies should give up such promising opportunities, rather than starving the core business with essential funding. In this way, financial management becomes an essential factor that might hinder a company’s growth and success in the future if not dealt with in the present.
This challenge is not something that can be eliminated. Rather, companies should smartly assess every step with it comes to managing the finance of the company. It becomes essential to control every element of working capital carefully to maximize the free cash flow. Some of the other ways of financial management of a company include tight control of overdue debts, efficacious credit management, and fundraising against trade debts.
Inventory management is also something that should be kept in mind while ensuring proper financial management. Just-in-time inventory management helps in connecting real-time financial data with real-time inventory data. This ensures the stocking of only limited products. Additionally, future planning helps in anticipating the financial needs beforehand and arrange to fund accordingly.
Organizations like Ziplyne and many others are undergoing digitalization. Digital adoption has taken a turn for the better and it is still ongoing. There have been numerous technological advancements and these advancements continue to proceed at a rapid rate. The majority of the companies wait for the next-generation technologies and use them to their advantage. This is important for the growth of a company. But digital adoption poses a challenge to many as it becomes significantly difficult for companies to be knowledgeable on the current technology and to have awareness about the emerging technology in the future.
To overcome this challenge, companies need to create a long-term technology strategy so that they are prepared for the changes happening. They also need to be flexible to be comfortable with any unexpected technological developments and take full advantage of them. Digitalization plays a significant role in improved customer feedback, enhanced employee performance, and onboarding.
Apart from all this, companies are often faced with the incapability of identifying, assessing, and mitigating risks. Risks are challenging. They require a sophisticated problem-solving competency among the business leaders. The success of an organization comes hand in hand with how problems and changes are encountered and dealt with. In any form, change is difficult to follow. But it is essential. Awareness is simply not enough. Companies should form proper strategies and commit to them religiously, even if it takes one out of their comfort zones.