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    Why Small Businesses Fails to Grow

    The World is ever-changing, the competition is growing steeper and steeper every day. It is becoming very substantial for businesses to keep up, that is why everyone is making use of the technology an available to ease off their burden up to available extent. The thing is technology and expertise comes at a cost and not every business is ready to afford it specifically small-medium businesses, having limited resources is itself a challenge.

    Growing a business and taking it globally is a must-have goal for any business, but do you know the dark side of starting and growing a business? According to a survey in 2017, about 20% of companies fail in the first year, and only about 33% cross the ten-year goal and it is even worse for start-ups that have a failing percentage of more than 90%. Also, the giant players constantly trying to create their monopoly is another obstacle in the market, which small businesses should keep in mind and fear about. The point is not to compete, it will just burn you nail down and this is what most businesses do and end up filing bankruptcy but the point is to play smart. Let’s talk more about it.

    Key Reasons Small Business Fails

    First of all, let’s discuss the key reasons which leads a business to the path from where it never returns to profitability. Hate to break it to you but only 30% of the Small-Medium Businesses (SMB) are on the profitable side and just a mere 9% of those are able to cross the life span of 10+ years, yeah, the numbers are shocking so does the reality. There are various mistakes that different small-medium businesses make that are still in the game, but few of them are common and disastrous ones.
    Cost of offering better Customer Service
    Let me get it straight there’s nothing like a loyal customer base, yes more customer means more revenue but what’s the point if you can’t retain your old ones. Customers nowadays just go for better services and better Customer Experience overall in general, whether it’s even after a year of making a purchase or a query they came across.

    78% of customers have bailed out from making an intended purchase because of inferior service experiences and of those only 4% of dissatisfied customers are heard by any typical business (and we do not want to think what happens to the rest).

    Easy To Use CRM System Is One of the Secrets to Making Customers Feel Special.

    Poor Inventory/Record Management
    Many new business starters fail to manage their inventory/Record or organise them poorly. Poor record management can lead to a business failure really quickly without you even realising its significance. Poor record management leads to conflicts between the working capabilities of the employees within a business and Ut mostly paves the way to Customer disappointment/dissatisfaction which will eventually shrink the profit of the business. It’s all interconnected one way or another.
    Insufficient Marketing
    A marketing strategy is the backbone of any business. It generates the required awareness about your products or services among customers. A good marketing strategy should correlate well with the long-term marketing plans and goals of the business. But, due to a variety of reasons, businesses tend to go for flashy strategies or outdated ones to market their products. This can negatively impact the sales as well as the reputation of the overall business. It is important to emphasize marketing and sales to drive the business a long way.
    Lack of Planning
    Improper management of resources and lack of planning directly reduces productivity and results in an ineffective business. It is foremost for the management to have a proper business plan which must include regular monitoring of the progress of the business and its associates. A proper business plan should include the needs (capital, employees, raw materials), opportunities, cashflows, budgets, and threats in the market. The entrepreneurs should have strong knowledge and understanding of their industry and competition to avoid pitfalls within business planning.
    Insufficient Capital
    Most of the small businesses fails because of futile finance management. New entrepreneurs undermine the role of money they need to a business without considering the operational cost. They acquire capital with debts to start the business with an unrealistic expectation of incoming revenues from sales.

    It’s crucial to realise and estimate the current value and operation costs to start a business. It is also important to note that some businesses may take long years to generate enough profit to meet operational costs. You should have enough funds until your sales pay off these costs.

    Improper Monitoring
    It is necessary to consistently follow up on the business progress by monitoring the reports and the key metrics. With improper metrics and sales reports, the sales team cannot plan their work to achieve the target. There is a possibility of losing customers due to missed appointments and follow-up meetings. Missing customers is a great loss for small businesses.

    How to Overcome these Problems

    Honestly, all those problems can be solved with humans also but being intelligent entrepreneurs, we have to decide where should our precious human resources should be allocated. If the same work can be done at minimal cost and with greater efficiency and in less time, this is surely a deal you shouldn’t miss. Here comes CRM to do it all for you and at your command and not just that let me give you a short brief regarding how a CRM can be a game-changer for you…!
    Improves Efficiency and Performance
    When you remove the burden of mundane and repetitive tasks from sales reps, you can expect them to focus more on selling. Additionally, with automation, your productivity and performance will improve, and as a result, you will be able to close more deals than usual.
    Speeds Up the Sales Process
    Automation makes sure that the entire sales pipeline moves swiftly and produces results without the risk of human errors. Also, can detect inconsistencies in the data if found any and report it to reps, which further increases automation usage. What seems to be a tiny error at the surface in sales can result in a heavy loss to a business.
    Improves Customer Satisfaction
    Automation speeds up things and decreases the response time. You can get back to prospects faster and give them a priority. Timely reminders to reps also help in increasing an engaging customer satisfaction rate which is not possible classically
    Increases Data Consistency
    The sales data need to stay consistent in the organization so that there is no discrepancy. Automation helps you do just that. Automated data collection, data filtration, and data analysis with the help of tools produce thorough results of the data and represent them graphically for easy understanding by the team.
    Helps Saves Time
    To succeed, you need to work smart instead of working hard to shift to automation to put every minute of your work to better use. Timing is the key in business, more time on hand just directly increases results and revenue.

    And these are just the tip of the Iceberg, experience the usability of CRM for your business yourself Read Why Invest in Sales Automation.