Having spent the last few weeks meeting with and chatting to small business owners around Essex, it became clear that they all seem to face similar challenges on a day-to-day basis.
As I expected, they are all time poor and there was an ongoing sense from these company owners or directors that they should be 'hands on' and across every facet of their business. But, as they told me, they may know all about their business but sometimes they need expert support and guidance to ensure their company grows and increases profitability.
Some of the challenges they faced included:
Customers
Customers are at the heart of any business. Without customers and the revenue generated then the business becomes just a good idea. One of the main challenges they faced was how to attract, retain and maximise their customers?
For me, the key to winning new business and ensuring customer retention is providing not only great products or services but adding a great customer service experience. A strategy needs to be developed for ensuring this customer growth and maximizing revenues from existing customers.
Marketing
Many business owners are not marketing experts and need strategic advice when it comes to developing a business positioning, a marketing plan, a campaign and thinking about the channels they wish to promote their business through.
The challenge is to enable the business to tell its story in a way that enables the business to grow and build customer engagement. Bringing an experienced marketer into the business either in-house or as a consultant to help develop this strategy can allow the business owner to focus on what he does best.
Time
For many business owners there are simply not enough hours in a day. All owners are stretched for time. Creating more time means sometimes saying no and focussing on what is essential for the success of the business.
This is where business owner often seek external advice from a business mentor or consultant to get them to focus on what is critical for the development of the business.
Financial Management
It is imperative for a small or medium-sized business to manage their cashflow effectively but sometimes managing the P&L seemed to be the third or fourth 'order of the day' for some business owners.
Getting good financial advice from a consultant who takes the time to analyse business performance, looks at aged debtors, analyses client profitability and puts effective financial planning measures in place mitigates the risk of the business getting into financial troubles.
Profitability
Business Planning seemed to be a bit of an afterthought for some of the business owners I spoke with, they were working more 'on the fly'. Annual Planning should start a minimum of four months before the end of the financial year and should start with a formal annual budget, understanding the profitability of each client/customer, growth opportunities, business development planning and an analysis of the overheads required to service those clients/customers, market and grow the business, generate a great customer experience as well as delivering a sustainable profit margin.
Successful business owners create wealth and grow their business because they understand how to build a culture where sustainable profitability is a given.
Processes
Many business owners are not across all the processes involved in running a business so the challenge is to make the processes involved in running a business simpler. This is where an external consultant or expert support can prove highly beneficial.
Failure to manage processes such as sales, marketing, business development, building customer loyalty, operational management, HR and employee development can lead to businesses failing. Being stretched across business functions is not the best way for business owners to develop their business.
Lucemi Consulting are a Strategic Marketing and Business Consultancy based in Colchester, Essex, UK.
We help business owners and companies by providing strategic advice to find the right solution for their business challenges. We take on their challenges, analyse the issues, and help them in a collaborative way to get to the answer.