5 Ways to Beat Your Business Challenges – infomediaku.net
Running a new business is of course a lot of challenges that must be faced. According to Mike Michalowicz, author of “Profit First: A Simple System to Transform Any Business From a Cash-Eating Monster to a Money-Making Machine”.
One of the causes for the collapse of emerging new businesses was incorrect cash flow management and it occurs in many types of industries. Although many people say that entrepreneurs are the happiest people in the universe. There is still one thing that entrepreneurs need to keep in mind, that the business you run is very dependent on healthy cash flow.
5 Ways to Beat Your Business Challenges
Dailyworth noted, there are five business areas with the highest failure rate in the world. However, this time we will discuss ways to beat your business challenges based on advice from successful business owners to keep their business going. Are you curious?
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1. Communication and Public Relations
From one study, a business in the field of Communication and PR actually has a 47 percent chance of surviving the first five years of the business. According to Inna Shamis Lapin, the boss of the Avant-Garde Communications Group who has successfully hooked well-known clients such as Martha Stewart, Vogue, Elle Décor, and others. It takes superior communication skills from the communication and PR industry players to survive.
Public relations work depends on a variety of unpredictable factors, such as marketing timing, messages and impressions, trends, changes in the mass media, and so on. So that the company cannot fully guarantee the results achieved for their services. In this case, communication to sell services and make business deals with customers is an important skill that must be mastered.
According to Inna, the main challenge of PR companies is to be careful in managing client expectations by providing honest and relevant information. He also argued that companies should only take jobs they believe they can handle.
2. Restaurant Field
From a study in the United States, 49% of restaurant businesses survive after three years of running. Meanwhile, 30 percent of new restaurants fail in the first year of business.
While the rest only lasts for 2 to 3 years. According to Kurt Knowles Jr, a well-known restaurant entrepreneur in the US. The restaurant industry business failed due to two factors, namely chaotic cash flow management and improper cooperation with other parties.
For cash flow problems, the cost of food fluctuates on a daily basis, so it is difficult to predict how much income you might get in the long run. In addition, Knowles noted that restaurant entrepreneur failures occurred because they did not actively participate in managing the cash flow of their business.
Regarding the second problem, you should establish good cooperation with suppliers of raw materials who are willing to provide leeway for shopping payments that often change.
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3. Education Sector
Melody Setevens, founder of The Academy of Music and Dance in the US mentions. One of the safe ways of doing business in education is by not keeping the costs of education too low and not paying high-priced teachers.
If you do these two things, of course, the benefits you get are not optimal. It’s a good idea to recruit students who are still studying or have just graduated to become employees. However, do a strict selection, because this business is very dependent on the ability of the teacher.
4. Manufacturing and Retail
From the research that has been conducted, 47% of the manufacturing and retail industries survive after four years of running their business. This industry has almost the same business resilience as the education sector.
Emily Holdridge, the founder of Everything Happy, a well-known children’s hardware retailer in the US, said that maintaining good partnerships with people in the manufacturing industry-specific to her business field has helped her to sustain the company for a long time.
Holdridge found that several of his business partners in the same industry, tend to try to offer all kinds of goods to all types of consumers. According to him, this step is very dangerous because it causes the company to become under-capitalized and under-funded.
They tend to spend a lot of time and a lot of money developing new products which are then just stockpiled. Though not necessarily sold quickly.
Holdridge advises those who are new to doing business in this field to undertake a special process. Namely by offering a simple type of product, with a variety of products that are not excessive. In this way, you can build confidence, experience, and a sufficient reserve of cash when needed to grow your business in the next process.
According to the census, 28% of construction businesses survive 10 years of existence. According to Kelsey Ramsden, owner of construction company Belvedere Place Development. Like other entrepreneurs, the most important thing that must be done is to manage cash flow every day and establish good partnerships with vendors or banks to help us through times of business crisis.
When he first started working in the property sector, Kelsey admitted he made a mistake by negotiating the lowest price with a vendor. His partner building material supplier then ignored it because he admitted that he wanted two-way cooperation. Kelsey learned from those mistakes and spent more time building better partnerships. According to him, construction companies must prove quality and accountable service, not just low prices.
Businesses Are Not Just Talking About Providing The Cheapest Items
That’s all our discussion today about 5 ways to beat your business challenges, there is one thing we can learn in running a business, namely getting involved in a price war. Avoid this and start providing products that have the best quality and can be accounted for. In addition, get involved in the conduct of the business and be realistic in living it.
The goal is that we are more aware of the original conditions of our business and not force ourselves to be in a position that is not the time for us to be there now. If you have other business examples and know how to make them last, let’s share!
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