As a small business owner, one of the most serious challenges you will face is having your business at a standstill. It is a frustrating experience and can result in business failure if urgent measures are not taken to remedy the situation. If your business is at that point, here are some questions and tips to consider:
- Is your current product still meeting a need? Or is it time to develop a new product? Sometimes changes in customers’ tastes and needs can make your product obsolete. Review this factor carefully and make adjustments if need be.
- Target Market: Closely related to the first point is a consideration of the target market. It is important to know if you need to target a new segment of the market with the same product or if you need a new product for a new market.
- Marketing Strategy: How effective is your business at reaching the target customers? Do you know how and where to reach them? Tools such as the web, social media, and Bulk SMS messages are effective and low cost means of reaching and communicating with your target market.
- Financial Analysis: Many small business owners do not take the time to study the numbers in their business and understand what they mean. A review will let you know how effective your record keeping is, how healthy your cash flow is, if your business is running at a profit or loss.
- Human Capital: This can be a reason why your business is stagnant. Are your employees motivated and actively working towards the business vision? Are you losing money because of mistakes, errors and rework? Are your staffs able to improve on business processes?
- Customer Satisfaction: How satisfied are your customers with your services? Are complaints the order of the day? That should signal low potential for repeat business and referrals.
Reviewing these factors will enable a small business rethink its approach and strategize for growth.