The process of registering a company is a very simple one. In fact with Company Formation MadeSimple it is just 4 simple steps. It is a quick process too, normally done within 3 hours. However here at MadeSimple Group we are always looking to keep young businesses prosperous, so we want to help prepare entrepreneurs for their new venture.
We want to help businesses grow so we provide a range of advice and guides, including our ‘Business Start Up Guide’ to give you the best chance of success. As a result, we thought it would be beneficial to share some of the challenges you will face post-formation.
So, what are the business challenges you should be most aware of once you start your business adventure?
Common Smaller Problems
Certain business issues are very common, as a result you are much more likely to face them. It might not be possible to avoid the challenges, but you may very well be better prepared if you know they are coming.
Some common challenges include:
- Over Planning – Let’s get this straight, planning is important – but only if it’s followed by doing. You might find that your business progress stalls if you spend too much time in the planning phase, this is a big problem. Try and find a balance, allow planning time – but remember that the execution of those plans is what really matters.
- Relying on Clients – When you first start getting clients, you are going to be a bit dependent on them. This is especially true if you have a large percentage of your income depending on a single client.
- Customer Service – Over-committing and under-delivering is a common problem, with a keen need to impress there are potential pitfalls for not satisfying customers. Customer service guru Ruby Newell-Legner states that “it takes 12 positive experiences to make up for 1 unresolved negative experience”.
There are many other common problems, but these are some of the more interesting ones – and ones you might not have necessarily expected. Other common problems include money management, cash flow and finding the right staff.
Deeper Larger Problems… And Solutions
Smaller company problems are much easier to manage, or at least focus your attention on, than the broader and more nebulous ones. There are many of these, some of them include:
- Marketing – Keeping a customer base is a big challenge, as is gaining potential new customers. Neal Jenson, a business mentor with experience at Citigroup and Bank of America said “Figuring out the right marketing channels is key for businesses to be successful in the future” – so identifying customer wants and tailoring your marketing around this is a significant challenge.
- Reputation – Sometimes in business there is a bad decision made – and your reputation suffers. If people judge your company to be in the wrong, it will negatively affect this – but on the other hand a positive impact can be made too. Your integrity and trust starts from within the company, so making a proactive effort to foster a positive culture is a good idea. This is great for employees too, where reputation is most strongly felt.
- Competition – One of the larger challenges faced by a business is remaining competitive, or even being competitive in the first place. Neal Jenson concludes “The ease of starting a business creates a much broader level of competition” and that “will make it more difficult for businesses of all sizes to retain customers who can change their suppliers with the click of a mouse”. The challenge covers marketing as well as reputation, but also counts on the focus of the business owner themselves.
Generally speaking, these are much deeper and larger problems and they generally don’t go away very quickly, in fact you should regard marketing, reputation and competition as something of an ongoing challenge.
Although it is very important to be aware of challenges, the real trick lies in finding solutions. Adapt and evolve to become a better business, or you may find that you’re left without the edge you need to survive in the business world.
Did you find this useful? If so please be sure to comment and let us know. Make sure that you check out the rest of our blog for more useful hints and tips. Particularly the posts on ‘Company Registration’.