Starting a business is much easier than it used to be as technology expanded the business world to the entire globe. This has resulted in increased competition in some industries while some businesses had to change their specialty simply to compete. Most people who open their own business encounter problems that they never thought would arise. The way that these founders react to problems could turn the company’s luck for the better or lead them to go bankrupt in a matter of months. The following are problems you might not have thought about that could impact business in a negative manner.
Banks Won’t Work With You
There is a chance that you are part of an industry that a bank would think of as high risk. Whether your business plan is solid with projections showing favorable business for years to come a large bank usually will not handle your money. A problem can arise when looking for a small loan to help with cash flow as banks tend not to lend high risk businesses money either. The best bet is to go to a local bank that is privately owned as they can deal with any business that they choose to when it comes to lending money. There are companies that can help and deal with high risk merchant processing for businesses that sell guns or a bar & nightclub business.
People who start their own business have probably heard about SEO when it comes to ranking their business on major search engines. What many people have not heard about is that of negative SEO which can immensely hurt a business if not dealt with. This can be done by a competitor or even a disgruntled employee trying to get back at the company. Negative SEO can make a business’s website drop in rankings unless the links that are considered webspam at disavowed or removed. Failure to do this can lead to the entire company being deindexed by Google. This is a death sentence in the US as you can’t find the business unless you remember the entire URL associated with it.
Problems Finding Appropriate Talent To Hire
Finding the right people to help you build your business does not seem like an impossible feat. Depending on your location and what industry you work in this can be extremely difficult. There are a myriad of app developers in the San Francisco area but there might not be this surplus in places like Detroit. Perks are what can attract top talent without having to pay them what larger competitors would. The best thing in many young professional’s minds is the perk of working from home. Many jobs can be performed from home and it allows the employee more freedom than they would have in the office. Keeping production quotas allows the company to take this privilege away if an employee is taking advantage of this. There are some people who will be more productive and others that you should just keep in the office permanently.
A Huge Company Just Joined Your Business Space
Large companies joining your business space can put a smaller company out of business quite quickly. Working smart is the answer to this as larger companies tend to have more approvals and corporate hoops to jump through on a single project. Streamlining processes and cornering a certain market can be extremely beneficial. For example, a marketing company might specialize in attorneys instead of simply marketing for any business. This specialization is done frequently when an industry has become saturated with companies that all seem to offer the exact same thing.
As you can see there are problems that people rarely think about when they are excited to start their own business. Be proactive about optimizing strategies and avoiding issues in order to minimize these types of issues.