Small Media Enterprises are the heart of an economy. These businesses play the greatest role in the contribution of country’s economy and are the largest producer of jobs, GDP and taxes.
But, these are the ones which find it hardest to grow. There is no doubt that growing a business is no easy feat, there are lots of challenges they have to face like market size, competition etc.
In this article, we have collected 8 pain points that SMEs usually face, so that you can consider knowing what are they?
- 1) Designing a Website that Converts
- 2) Using and Developing KPIs
- 3) Lack of Capital
- 4) Generating Referrals from Existing Customers
- 5) Managing Cash Flow
- 6) Applying Customer Feedback Efficiently
- 7) Rising Competition in Market
- 8) Protecting Ideas and Commercial Assets
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1) Designing a Website that Converts
Many businesses fail to design a highly converting website for them. It is very essential to have a creative and compelling website that can attract visitors towards it. Your first impression matters the most to win out the trust and loyalty of your audience. Most of the websites fail to satisfy their customers and fail to convert them because of not having a converting design of the site.
2) Using and Developing KPIs
You should always choose a KPI (Key Performance Indicator) that is directly related to your business. A KPI can be related to any of your goals like to improve ROI (Return on Investment), to increase sales or to improve customer service. Most of the SMEs fail to develop a correct Key Performance Indicator (KPI) for them. Monitoring KPI is essential to track your growth.
3) Lack of Capital
The biggest problem faced by such businesses is that they do have big plans but do not have huge capital. Lack of capital is the most common reason why most of the companies fail. It is necessary for owners to stay in tune with the day-to-day basis expenditures to get an idea that how well they are doing in the market. A small business quickly falls out of operation when they can’t get the capital they need.
4) Generating Referrals from Existing Customers
The most qualified leads you can get for your business is the one you can get from your existing customers. 1/3rd of new business you get comes from the referrals, so it’s essential for small businesses to maintain long-lasting relationships with their existing customers to generate referrals. They should implement Customer Relationship Management (CRM) Software.
5) Managing Cash Flow
SMEs need to have a thorough understanding of their expenditure to manage the cash flow efficiently. The key challenge most of them face is to overcome finance issues like clients stalling payments, outstanding bills etc. These owners can use money management tools to manage their expense. And, by using online invoices that send regular emails these small scale businesses can easily manage their finance.
6) Applying Customer Feedback Efficiently
No matter what size of business you are running, customer feedback is must. Customers provide loyal feedbacks that how you can improve your services and a clear perspective of customer experience. So, it is critical to apply customer feedback efficiently for retaining clients. So, SMEs need to be active in taking feedbacks and changing it as per the insights.
7) Rising Competition in Market
Running a business is a challenge with high overheads and strong competition. Most of the businesses fail to keep with the existing competition in the market. It’s very important for small businesses to give a strong fight to their competitors for staying in the market and winning out the trust of people.
8) Protecting Ideas and Commercial Assets
The risk SMEs face is having their ideas stolen by others. They neglect to protect their commercial assets and Intellectual Property (IP) rights, as they are busy running the business properly. But, your business assets need to be protected and kept private. All the information, ideas, financial information, customer database are the core part of your business, so it is crucial to maintain the secrecy of it.
As it turns out, above listed are the 9 great challenges that most of the businesses go through during the course of managing it. So, now be prepared to solve the problems that are coming your way by keeping these pain points in mind.