The speed of economic and technological changes occurring in the world today means that the path used in tackling business challenges yesterday may not work today and could be disastrous tomorrow. Solving these dynamic problems is what separates those who excel from the companies who are shutting down. Every business must face certain challenges some are generic and some are specific to the type of business undertaken. However, there are some general problems which are unavoidable in all types of businesses. Here are some ways to solve 3 biggest problems businesses often face:

1. Cash flow generation: A healthy profit looks good in financial statements of any business, but if expenditures or receivables are draining your cash income, your business will not survive. Executives and small business owners often fail to focus more on cash flow generation.  In order to ward off this sort of problem, businesses must either be adequately capitalized and shore up cash reserves to meet all obligations in order of priority as they come. Cash management in business become even more pressing during recessionary times when cash flow slows down and creditors, if any, become more restless in receiving returns.
2. Increased competition: With the evolution of the digital age the long procedures that were involved in starting a business have been cut out. Nowadays if you can buy a domain name and register your business online, you’re in business. However, staying in business is the much more crucial and complicated part.  With the many businesses out there today, there’s a lot more competition. You may find different business competing for each product you sell. This increase in overall selection and competition will make it more difficult for businesses of all sizes to retain customers who can change their suppliers instantly.  However, there are still enough customers for the many businesses out there including the new ones. Mastering the elements of perception, focus, and marketing and providing a great customer experience will give your business a fighting chance.
3. Marketing/Customer Loyalty: The challenges with marketing to potential customers effectively and retaining existing customers is a very common one faced in doing business. Digital networking and communication channels are making it easier for businesses to market their brands, services, and products.  Figuring out the right marketing channels and locating the right customers is key for businesses to be successful in the future. Maintaining a customer’s loyalty after gaining their attention is difficult with the many competitors out there but can be achieved by identifying what your customers want and doing a better job of giving it to them.

Olatorera Consultancy Limited provides business development services to high net-worth individuals and companies looking to grow, enter or do business in Africa.