The success of your small business depends on your marketing strategy. Basically, marketing covers everything related to the acquisition and retention of customers while focusing on the financial component. This remains the main problem among small business owners. They do not have money in order to grow, and not growing doesn’t give them any financing.
According to some researchers, 41% of small business owners face the challenge of identifying and achieving marketing results. Once solving this problem, you can be sure you’ve overcome the main obstacle towards developing and maintaining a profitable business. This is not easy, especially if it’s your first business ever.
But do not despair! Unlike large entrepreneurs, small businesses are mobile, quickly respond to changes and market needs, are able to offer a unique product or service, have high investment efficiency and greater profitability.
In developed countries, small and medium-sized businesses provide half of the gross domestic product, constantly affecting and developing the local financial community
Conducting a small business is accompanied by a number of significant financial costs. The first thing an entrepreneur faces is the high cost of renting (offices, retail, warehouses), especially in large cities, as well as overpriced utility bills. The financial burden of renting and paying utility bills is much worse for small businesses than tax rates. If a firm has no money to rent a warehouse, it might also have no funds and ways to attract customers.
Current macroeconomic conditions make it worse, creating additional difficulties for small firms. Lending rates are often very high, so only highly profitable companies can afford them. Many banking institutions are extremely reluctant to lend money to small businesses.
Another problem is the low purchasing power of the population, the changing priorities of consumer behavior and, as a result, the decrease in sales. As a result, the trading segment of the market is monopolized, every small entity dies or goes under the large retail, because it pays for advertising that doesn’t bring money back.
The third problem is the liquidity and the non-payment crisis. Small businesses work under conditions of owing to counterparties and counterparties owing to them. Many counterparties have to work on credit, receipts, barter, etc. There are very few real payments, money does not float through the entrepreneurial system.
In addition to the above difficulties, there are other problems that small businesses have to face.
Marketing issues also appear in the online segment. You might think your business idea doesn’t involve renting a warehouse or the population of one single country. Still, did you know that the Internet is nowadays oversaturated with ads? Consumers constantly skip video ads, close banners and turn off the sound of game pop-ups. It is very hard to make a potential client listen to what you have to say, no matter how much money a firm uses on marketing instruments.
The small guys have to be creative, to interest their audience, to make them hear the whole message and convince them to buy this new thing they’ve never heard of before. And all this with a minimal budget.
If you want to be one of the entrepreneurs who are able to face such struggles, we recommend consulting with a company formation team, who will be able to guide you throughout the business processes.
Bizonaire is right here to help you with that!
