7 CHALLENGES FACED BY SMALL HOME-BASED BUSINESSES

7 CHALLENGES FACED BY SMALL HOME-BASED BUSINESSES

Starting a Home-Based business is always exciting! Many people venture into home-based businesses as a side hustle to supplement their income.

And while most people focus on the immediate need of work from home, an important aspect to keep in mind is to start a business that matches your Talent, Passion and has a market for the product.

Running a business from the comfort of your home is ideal, but there are certain challenges along the way. We’re here to share with you some of the most common challenges home-based entrepreneurs face and some top solutions to overcome these hurdles.

Efficient Customer Service

 

1.Finding and Retaining Customers: Having a great product or service is one thing, but it is futile if you don’t have a customer to buy it. One way to find new customers is through referrals; Business Owners can implement and build a referral generating system in the sales process. Networking through word-of-mouth is also another effective way in building relationships that lead to new customers.

However, finding new customers is expensive – retaining them is much cheaper. To get started with a retention strategy is to handle customer complaints and feedback professionally. Identify areas that are causing you to leak customers and plug those leaks. Excellent aftersales services are a great way to keep that vital relationship going.

Also reaching out to your customers regularly will help you stay at the forefront of their minds. High ethical and moral principles will make you stand out from the competition and lead to a long-term relationship with your customers.

 

Small Business Owners Wearing Too many hats

2. Balance Multiple Hats: Small business owners notoriously put on a way too many hats! Right from the title CEO or principal founder: on any given day he /she can be a customer service, a sales associate or a marketing manager, technology director, accountant, and many more. The flipside of multitasking by Small Business owners is that, it leads to a decrease in productivity and efficiency.

The solution is, instead of getting swamped and overwhelmed, get help!! Empower people around you, Spouse, your parents, your grown-up children. There must be something they can do to add value to the business.

Outsource where ever possible and use technology for automating your home office marketing tasks by using deep marketing tools, website actions, scheduling social media posts, etc. Ideally, a Small Business owner should focus more on marketing and sales; that’s where all the money is

 

Financial Growth and Planning

3.Financial PlanningFor the smooth functioning of any Business, one requires Money. It can take a few years before the business starts making profits until then it requires proper budgeting and planning to maintain a smooth cash flow.

Unfortunately, most Small Home-Based Businesses struggle with managing their cash flow. One way to improve cash flow is to require a down payment for your products and services. As far as possible avoid offering business credit to customers.

Encourage and incentivize early payments, and enforce late payment penalties. Another strategy for improving cash flow is to make the account receivables more user friendly. Switch to digital methods of payments which augments the process. You can also request vendors and suppliers for a reasonable credit period.

The government of India has started some new business loan schemes for the SME sector which can be availed for small business finance. Non-Profit Organizations like deAsra helps small business owners to identify their business loan options and assists eligible borrowers and RBI approved partner lenders (NBFCs, banks, crowdfunding P2P NBFCs) to get connected.

 

Registrations and Licensing for Small Businesses

4.Registration and Legal Compliances: Small Business owners find the procedures for various Registrations and licensing, cumbersome and intimidating. Believe me! it’s not.

Registration would give legal existence to your business. It is crucial to note that most banks and financial institutions lend only to Registered business entities.

Registration of your small business is a must, not just to avail tax advantages and benefits but also protect your business and secure your rights. In certain situations, failure of registration may lead to legal consequences too.

The following are some of the Registrations and Licenses that Small Business entrepreneurs may need to start a home-based business.

  • Udyog Aadhar
  • GST Registration
  • Shops & Establishments Act License
  • FSSAI
  • Obtain Digital Signature
  • Open a Current Account
  • Professional Tax Registration

As per the latest Doing Business‘ 2020 report, India ranks at 63rd position among 190 countries. As per this report published by the World Bank, Economies are ranked on certain parameters to assess the ease of doing business. A high ease of doing business ranking means the regulatory environment is simpler, and stronger protections of property rights are in placeEase of Doing Business India Ranked 63rdImage credits;https://www.worldbank.org/en/news/feature/2019/10/24/doing-business-2020-sustaining-the-pace-of-reforms

 

Marketing Strategy

5.Lack of Marketing Strategies: Marketing is the process of understanding your customer’s need and building a product that fits in. It also includes keeping an existing customer happy, building, and maintaining trustworthy relationships, and building a strong brand image.

The reality is, Marketing is a broad concept and includes a wide range of elements. For a Small business to succeed, the owner must ensure the following marketing mix:

Product: The product is either goods or services that seem to meet a specific customer need or demand.

Price: pricing is an important and often challenging aspect of business success. Too low or too high prices may not yield the best results. The Price should be aligned to desired profit margins.

Place: Small Businesses should ensure that consumers have easy access to their products and services.

promotion: must be designed to reach the right people, in the right place, at the right time–with the right message.

Lack of proper marketing in any of these areas can impact a company’s bottom line.

 

Brand Awareness

6.Brand Awareness and Promotion: Small Business owners regularly encounter the problem of building Brand Awareness for their product and services. No matter how hard they work or how great the product or service is, customers won’t be able to buy it unless they are visible on search engine results. Without proper brand awareness and online marketing promotion strategies, marketing efforts would not convert into sales.

One of the best ways to promote a product or service is through blog posts .Social media campaigns on Facebook, Instagram, Twitter, etc. are also useful means of promotions. Brand awareness efforts offer various advantages: the services and products would be visible in search results, familiarity with a brand helps in building trust, businesses who have increased Brand awareness dominates in a competitive market

 

Digital Marketing for Small Business

7.Keeping up with Digital trends and technology:  Today’s digital world is constantly inundated with, new platforms and tools for promoting businesses. While these innovations are often exciting and beneficial, small business owners find it inaccessible and taxing to choose the right tactics, right platform, and tools. Some of the common questions that pop up:

  • How can one be sure of what methods to apply?
  • Which digital marketing tactics will help to get the most exposure?
  • How to achieve marketing goals without wasting valuable time and money?
  • What tools to use?
  • How to ensure you’re reaching the right audience?

Some small business owners struggle to establish positive outcomes out of their business page and social media marketing due to lack of technical know-how. A study shows that the organic reach on some social media platforms has dropped due to an algorithm change. Few people would see your posts which means few clicks, few interactions mean fewer conversions and leads.

A digital marketing expert can help you get past all these challenges through the systematic deployment of various conversion tools for Facebook and Google Ad campaigns, Search Engine Optimization, Keywords etc.

Consequently, a well-planned digital marketing strategy over a period of time would fetch the following results.

  • Establish and earn profitable goals for the business: whether it is to Convert leads, increase web traffic, support revenue generation, increase brand and customer engagement, etc.
  • Building a Strong Social Media Presence by employing various tools and techniques to convert leads into customers.
  • Producing the right kind of content helps build a relationship with your audience. Content can make or break a digital marketing strategy.
  • Choosing the right channels for promotion and identifying the right audience for a successful campaign.
  • Utilize Automated Email Marketing Campaigns and other automation tools that help streamline processes. Check out this cool tool which converts website visitors into email list subscribers: OptinChat
  • Enhance online visibility and ranking through Website and SEO marketing efforts and a proper defined call to action.
  • Make use of eye-catching, Display and Video Ads to reach wider audience and accelerate business

In fact, the most important strategy for Small businesses is to focus on ROI. That is, to ensure that your Digital Marketing effort is done in the most profitable way, you must choose a tailor-made solution that not only meets your business objectives but is also cost-effective.

To help take your business to the next level, reach out to us for a free consultation. The Leading Tribe is into specialized Digital marketing for small business , focused on solving problems encountered by small businesses by employing Digital marketing strategies and tools.

Are you ready to see how Digital Marketing can increase your business visibility and raise profitability?

Well, you Can!

Just contact us for a FREE digital marketing consultation to see how you can get started.

 



4 thoughts on “7 CHALLENGES FACED BY SMALL HOME-BASED BUSINESSES”

Leave a Reply

Your email address will not be published. Required fields are marked *