Top Five Challenges Faced by Business

Running a successful business is a daunting task. Adapt, change or stay viable is the key to survival. So what are the top five challenges for a business?

1.         Uncertainty

No matter what type or size of a business, uncertainty of regulation, markets, competition, technology are some of the never ending issues. Securing new contracts or mandates is key to driving short-term goals. So long-term value destruction may be the price for reactive, short-term focus. Reading trends and changes in the marketplace require some expertise.

2.         Cash Flow

To sustain operations, cash flow is key. Assets are secondary, especially if they are not generating cash. One former PM used to remark “Cash is king”, he is only partially right. Unless it is invested in generating cash flow, it remains in the “Dead Sea”. Improving processes, monitoring debtors/creditors ageing, staff levels and other revenue/expense items provide the base for better cash management. And for some it is a daily affair.

3.         Competition

Knowing the competition is important for survival. Their unique selling point and how best to overcome them is of significance. An independent party could be of help.

4.         Regulation

            As markets and technology shift so do rules and regulation. Impact of risk and regulatory compliance are added costs for any business. But it is worth the effort for sustained performance.

5.         Technology

            Pace of change is running exponentially. Flexibility and innovation are key to survival. External consultants provide that vital function in integrating multimedia and social media for marketing of services.

Many other challenges remain and may include branding, talent retention, supply chains, customer preferences, behavioural patterns and understanding changes in international markets. One needs to engage an independent expert for any particular area of interest.

References

1. Challenges Small Businesses Face in 2018, Eileen Conant (www.powerhomebiz.com)

2. 4 Big Challenges Businesses Face in 2018 and How to Tackle Them, Sylvia Schwartz (https://www.sage.com/en-gb/blog/big-challenges-businesses-face/)

3. The 10 Biggest Challenges Businesses Face Today (and need consultants for), (https://www.hiscox.co.uk), March 24, 2017

4. Top Ten Problems Faced by Business, Lean Methods Group (www.leanmethods.com)