Business can be incredibly volatile depending on the industry as well as the size of the business. A small business that is relatively new is going to have far more fluctuations than that of a larger corporation. The correct strategies at overcoming problems is what can turn a new business into a mainstay at the top of a business niche. Preventing the same issues from occurring over and over will take hard work as well as planning. The following are business nightmares to overcome as well as how to prevent future issues in the below areas.
Trouble Closing Sales
Closing sales at a high level does not always happen for a variety of reasons. This could be the small business has not done enough to earn the trust of others in the industry. The marketing team could be generating a ton of leads but many of these are low quality or unqualified to be a customer. Hiring all-star salespeople can solve all of the problems as there are people that can close deals daily, you just have to find them.
Large Client Refusing To Pay For Completed Work
A large client refusing to pay can cripple cash flow and is simply bad business. Try to work this out as quickly as possible without losing the client in the future. Payment terms might have been a bit unclear so hiring a firm like Saalfeld Griggs Business Lawyers can help tighten up contracts. Do not leave thing like payment terms up to a client as they could opt to delay payment for as long as possible. Do not start other projects for these clients until they have paid for what is complete even if they keep mentioning those projects have a deadline. Payments also have a deadline which result in a stoppage of work for a client until they have paid up.
Time/Wage Theft By Employees
Time theft or wage theft occurs daily at a myriad of business whether it is a person checking social media or responding to personal emails. Reducing this will only help increase productivity and will drive down labor costs. Introducing a time tracking software which can tell management which websites are being visited is important. This is not the time to crack down on top performers that might finish a project or close a sale then try to unwind for a few minutes. This is for those blatant offenders that are below average in productivity due to them constantly being distracted.
Star Employee Starting Their Own Business And Stealing Employees
The one aspect of hiring those that are motivated and versatile is that they might go into business for themselves. There is nothing wrong with this but stealing clients or other employees is just bad business. Having staff sign clauses promising against this or having them sign a non-compete can make all of the difference. You put money into making your employees the best possible not just for another company to steal them due to knowing their quality of work.
The management of problems can allow a small business to last and potentially grow into a juggernaut in their industry. Take time to create recovery plans if things do go wrong as this can make a huge difference.