There are a multitude of areas where Entrepreneurs struggle in their businesses, but in most cases those struggles can be boiled down to just 3 areas.
Most entrepreneurs don’t consider obtaining credit to be their biggest obstacle to being in business, even in the current lending environment that is extremely tight. In fact 82% of Entrepreneurs consider one of the following three to be their greatest struggle:
- Slow Sales
- Unpredictable Business Conditions
- Customers Not Paying On Time or at All
That last one —customers not making payments—is a problem of the times, Clarity finds and they produced an Infographic showing the trend of the struggles plaguing Entrepreneurs these days that I’ve included below. Only 2 percent of entrepreneurs said customers not making payments was a great struggle in 2008, but now 14 percent of entrepreneurs struggle with getting customers to pay up.
When customers don’t pay or pay late, that can lead to a negative Cashflow, and negative Cashflow is extremely serious to small businesses. It requires either a loan or a new cash infusion into the business, which can be not only risky, but in many cases can be difficult to obtain.
Cashflow problem are probably the single biggest cause of business failure, because if you don’t have the cash coming in the door, then you can’t pay your bills and employees etc. and YOU ARE DONE, broke, out of business.
Like all sales, there are 2 potential places where those sales could be coming from, either brand new customers who have never done business with your company before, or existing customers who could be providing repeat business.
If you are a business owner, I’m sure you already now it is much easier to sell to existing customers, and it is also much lest costly, because you already know who your existing customers are, and according to the graphic below, those existing customers are 50% easier to sell to as repeat customers.
Clarity put together the following Infographic that I think does a great job of showing that trend. The Infographic is based upon research in 2012 conducted by Kauffman, Bain & Co., Gartner Group, and InsideSales.com.
Does it match up with what you are seeing in your Small Business these days? Post a comment below to let me know what your greatest struggles in business are these days. I’d love to be able to help.
Also, don’t forget to Like and Tweet about this post so your friends can benefit as well.
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Entrepreneur’s Greatest Struggles
Have A Prosperous Day!