Global consumer confidence is way up and the United States leads the pack when it comes to where much of the momentum is being generated. Given the strength of today’s economy, businesses are riding high with record sales coming their way and in a lot of cases, more money than they know what to do with.
Here’s a fact though… What goes up must come down. Strong economies don’t last forever and when they start to fall, problems begin to arise for businesses.
Even in today’s positive market, many industries are facing a variety of troubles that have put them on uneasy ground going into 2020.
In this article, we examine what some of those common business issues are and offer brief insight on how to not fall victim to them.
1. Uncertainty
No matter how good the economy is, uncertainty is always something that plagues business operations. Today might be a good day, but what about tomorrow?
What if one of your clients closes shop? What if you need to recall a product?
Are you built to withstand the many economic uncertainties that surround the marketplace?
While there’s no escaping uncertainty in business, the best way to help avoid bad things from happening is to diversify your money makers and always strive to provide high-quality goods and services.
If your client-base is diversified, you’ll be able to survive losing some work. If your products and diversified, needing to pull one off the shelf won’t spell doom.
2. Outsourcing
If you’re operating in a first-world economy, chances are, somebody in a third-world economy can do your job for cheaper. The second that your clients or customers catch wind of that and muster up the energy to take action, you might be out of a job.
Tasks that can be done easily by foreign parties like manufacturing and art are often the first jobs to go overseas. Jobs like writing or communication that require high English-language proficiency are safer.
Building your business around ventures that don’t translate well into foreign economies is a great way to safeguard yourself.
3. Technology
Technology can help your business run better in a variety of ways. It can make you more productive, it can give you insight that allows you to better manage your finances and more.
On the other hand, technology can also decimate whole industries.
Trucking, for example, is an industry that’s positioned to be taken over by self-driving rigs sooner than later.
Where will those millions of truck drivers go once they’re replaced?
Understanding where your business is susceptible to technology and embracing that tech prior to being overtaken is your best bet.
4. Theft
Retail stores lose billions to theft every year. Even non-retail locations are susceptible to losses via employee dishonesty.
You can learn more about employee dishonesty here if that’s your primary concern but if you’re a retailer that’s feeling the burn of shrinkage, do yourself a favor and hire security guards.
The cost of having in-house security will always pale in comparison to the cost of rampant theft.
5. Regulations
Sometimes things are going great in the economy until the government steps in and makes things a lot harder.
Environmental restrictions. Heightened taxes. New rules surrounding employee treatment.
While all of these regulations are well-meaning, they often cost business owners thousands of dollars if not more.
Staying abreast on where political temperatures are is important to ensure that you aren’t blindsided by new rules. When rules start rolling out, be quick to incorporate them rather than holding off until fines start getting issued for non-compliance.
6. Talent Shortages
Unemployment rates are flirting with record lows which makes it difficult for businesses to hire competent employees since most of the people in the job market are already working.
This is among the most commonly cited business issues among entrepreneurs that don’t get anywhere near enough attention in the media.
The best way to counteract this problem is by recruiting and hiring young.
Set up shop on college campuses and start building in-roads with students. Offer paid internship opportunities with a pathway towards employment.
Taking a chance on young talent will net you cheap, often outstanding labor when compared to trying to attract proven talent in the open market.
7. Stunted Growth
Business issues that encompass stunted growth are more common than you think in strong economies. Here’s how this usually goes down:
You’re running a business and have 3 outstanding clients that are providing you with more work than you need to hit your goals. Rather than continuing to grow your business, you feel satisfied with where you’re at and sit stagnantly.
The moment that one of those 3 clients drops out of the running, you lose a 3rd of your income and have trouble meeting your expense obligations.
The moral of this story is that whether things are going very good or very bad for you, you should always have an eye on expanding your organization.
Our Final Thoughts on Common Business Issues
No company is exempt from business issues. How companies choose to handle the adversity that they face, is what separates a business that will stand the test of time versus one that will fade into obscurity.
Be sure to take the issues that we’ve outlined to heart and be proactive in safeguarding yourself. If you do, we have faith that you’ll be in operation for years to come!
If you’d like more information on how to get the most out of your organization, continue reading our expertly sourced content.
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