Business Challenges for 2019
Integrity Business has never faced the type of moral challenges that it faces in today’s global economy. Everyone is struggling to be more successful, to make the next quarterly earnings estimate, to keep their job, to earn a big bonus, or to compete effectively.
The temptation to cut corners, omit information, and do whatever it takes to get ahead occur every day. And it is important to keep in mind that without trust, the business will not be able to compete effectively and it will eventually fail.
Cash Cash is King! We’ve all heard this maxim and it is more true today than ever before. A healthy profit may look nice on your financial statements, but if capital expenditures or receivable collections are draining your cash, you won’t be able to stay in business for long.
In order to head off this problem, businesses must either be adequately capitalized and must shore up cash reserves to meet all obligations as they are needed and to handle downturns and emergencies that may arise.
Cash Management Cash management becomes even more important during recessionary times when cash is flowing more slowly into the business and creditors are less lenient in extending time to pay.
For small businesses, handling business accounting and taxes may be within the capabilities of the business owners, but professional help is usually a good idea.
Increased Selection and Competition The ease of starting a business creates a much broader level of competition. You might find different business competing for each product you sell and new business that focus on a single item and spend all their time and focus on being the very best at just one thing.
This increase in overall selection and more focused completion will make it more difficult for businesses of all sizes to retain customers who can change their suppliers with the click of a mouse.
Marketing and Customer Loyalty Along the same lines as increased selection and competition is the challenge to market to potential customers effectively and retain your existing customers. Smartphones, social media, texting, email, twitter and other communication channels are making it easy for businesses and individuals to get their messages out.
Figuring out the right marketing channels is key for businesses to be successful in the future.
Regulation
A changing regulatory environment is always of concern in certain industries, but uncertain energy, environmental and financial policy is wreaking havoc for nearly all companies today.
Whether a demand from customers or shareholders to become more “green,� or the threat of increased costs due to new carbon taxes, environmental considerations are among the biggest challenges businesses face today.
Problem Solving and Risk Management
A major challenge for all companies is identifying, assessing, and mitigating risks, including human and financial capital, in addition to the macro economy. The lack of a sophisticated problem-solving competency among today’s business leaders is limiting their ability to adequately deal with risks facing their businesses.
This is why corporate managers tend to jump from one fire to another, depending on which one their executives are trying to put out, and in many cases the fast-changing business environment is what ignites these fires.
Finding the right staff
Without exception, every business executive we speak to says that one of their biggest challenges is staff – finding the right staff, retaining them, and ensuring they buy into the vision of the business.
We'll freely admit that I have no magic answers here. In fact, if someone could develop a formula for recruiting and engaging the right team members, they would make millions.
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