As much as you might like for it to be, running a business isn’t always smooth sailing. Several challenges are likely to arise at some point during the lifespan of your company. How you respond to those challenges or how prepared you are to face them can mean the difference between making it to the next quarter or folding. Although things can get rocky from time to time, if you have a plan in place, your company will be able to weather even the toughest of challenges.
A product idea might seem perfect on paper. But, when you actually release that product to the public, it might not perform as well as you had expected. There are several reasons why a product might not do as well as you hoped and a number of ways to handle it.
First, it can help to look at your expectations for that product. It might be that what you wanted from it was more than your customer base was willing or able to give. For example, if you’ve launched a new service that is $50 per month and people aren’t signing up for it, it could be because the people you are marketing to just aren’t sure of the value of the new service. What will they get for $50 each month and will it be worth $600 per year? One way to increase use of the service is to offer a free trial. For 30 days, let people test drive the new service. During that time, make sure the product or service really provides value to them, so that at the end of the trial, they want to sign up for more.
In some cases, a product might not do well because it just isn’t a good fit for your company. Working with a virtual CFO can help you avoid introducing products that don’t mesh with your company’s mission or goals or help you best determine what new offerings make the most sense for your business. If the product is already on the market and not doing so well, in some instances, it’s in your best interests to accept that it’s not working for your business and to discontinue it. Giving up on a service or product can be difficult, but it can be the best option for your company in the long run.
Poor Fit Employees
Finding and hiring the right employees is another common business challenge. Hiring the wrong employees, or people who just aren’t a good match for the company, can be a huge obstacle in the way of your business’ growth and success. Taking your time during the interview and hiring process can really help you avoid hiring people who just won’t work well with your company. There’s no need to rush and put the first person you come across in a position.
When you are interviewing, look for someone who is engaged and who seems genuinely interested in the work your company is doing. In many cases, a candidate with less experience than other, but who is very interested in your business and seems committed to helping it thrive is a better pick than the more experienced, but disengaged candidate.
Money challenges can crop up at various stages of your company’s growth. In the early phase, it can be challenging finding enough capital to get the company off of the ground. As you start expanding and hiring people, spending more money than you can comfortably afford or making sure there is enough cash on handle to get through an increase in business are two common issues. Having a strategic business plan in place and researching ways to increase capital can help your company cope with any money issues it might face.
The team at New Direction Capital can help your company work through any challenges it might face and help it avoid future obstacles or issues. To learn more about how our CFO services can help your business, get in touch with us today.