Running a business can be tough work. On average, about 20% of businesses fail in their first year and the failure rates only increase after that. Thankfully, there are a few common missteps you can avoid to help keep your business on track. Keep reading for a closer look at 5 business problems that could permanently hamper your organization’s growth.
1. Not Finding the Right Customers
One of the biggest problems facing many businesses today is not being able to connect with the right customers. For many industries, you may be able to connect with some customers, but finding the right ones can be a challenge. The right customers are those that are truly committed to your product or service and are willing to pay reasonable market value for your service. The sooner you can identify the right customers and how to market to them, the more successful you’ll be.
2. Hiring the Wrong People
Hiring is one of the biggest challenges for any business — especially smaller companies. But, the right employees can literally make or break your business. It only takes one or two lazy or incompetent employees to ruin a customer relationship. And the more customer relationships that are damaged by poor employees, the worse your reputation becomes. With the cost of hiring an onboarding new staff reaching $4,000 on average, it’s important to find the right people.
3. Money Management Issues
Paying bills and making payroll every month are important tasks for businesses of all sizes. If you can’t pay for important, basic functions, your doors won’t be open for long. As mundane as it may be, be sure to place proper money management at the top of your list — especially when you’re just starting out.
4. Regulatory Problems
Local, state, and federal regulations for businesses are increasingly complex. From building codes to hiring practices, it can be tough to keep up with the many governmental requirements. But, you must make sure you’re in compliance with the correct regulations. One misstep could cost you dearly if you don’t have the capital to fight a protracted legal battle with regulators.
5. Tax Woes
Taxes are another common for businesses. From payroll taxes to federal income taxes and local property taxes, most businesses have a lot of taxes to pay. Mishandling just one of your tax bills could cause real problems for the long term health of your business. If they’re not already, make sure all of your taxes are in the hands of a capable accountant who knows exactly what and when your various tax bills need to be paid.
How are You Avoiding These Costly Business Problems?
If you want to keep your business afloat, make sure you’re avoiding these common business problems. Regulatory and tax woes can put a real damper on an otherwise healthy business. Need help keeping your business on a solid financial footing? We can help. Get in touch with us today for help with your accounting and more!