The 4 Major Business Obstacles of Change
Business obstacles

Consistent with business growth and change are the inevitable business obstacles.

 

In almost every stage of a company’s lifecycle there will be business obstacles that pose a significant threat to the overall success and vitality of businesses. We have identified four major obstacles that almost every company from start-up stage to mature stage experiences at some point.

Here are the four major business obstacles to be aware of: 

1  Liquidity the first major business obstacle

Liquidity primarily occurs in the start-up phase for newly established companies. Companies at this stage are often times not ready to take on bank financing and/or equity investments due to the fact that they are simply not a bona-fide company yet-meaning they have little to no sales and/or infrastructure to support efficient operations. Companies need liquidity to cover basic working capital needs, such as inventories, rent, utilities, etc… When companies lack liquidity, the ability to cover these costs will inevitably become non-existent.

Takeaway: lack of liquidity prevents companies from covering the expenses that will allow them to grow, thereby negating the probability of success.

2.  Sales the second major business obstacle

A sales pipeline deficiency primarily occurs when companies fail to implement a proper sales protocol. Just like every mainstream corporation needs a steady pipeline of products, every company needs a steady pipeline of sales. This assertion holds especially true for smaller companies due to the fact that-while compared to larger companies they can’t afford to absorb periods of declining or stagnant sales. Small companies live and die by their ability to close and attract sales; however, time after time smaller companies neglect to instill a consistent and effective sales pipeline protocol.

Takeaway: without a proper sales pipeline set in place, your business is operating on the hope of new sales.

3.  Quality product delivery the third major obstacle

Quality product delivery arises in a wide array of situations, however it’s often found when there is either a communication discrepancy between that of the customer/client and the company, or when the company is focusing their efforts on price reduction rather than product quality.

To elaborate, quality product delivery is a two way street, in that it requires a company to have the competency and knowledge to produce or provide a quality product and/or service, but it also requires the company to be in constant communications with clients/customers in so that the company understands exactly what their customer/client wants. If what you’re providing to your customers/clients is not exactly what they want, then in essence, you are failing to overcome this obstacle, and in the long run your company will experience increased client/customer attrition.

Takeaway: companies must ensure that what they are providing clients/customers is exactly what they want; if it’s not a matter of communications then ensure that the product is of respectable quality.

 

RELATED POSTS

3 Tips on Social Networks Vital for Business

3 Tips on Social Networks Vital for Business

Social networks provide a wealth of information and the opportunity to extend your reach for very little financial investment. Your Activity in Social Networks Can Be Good for Your Business Whether by blogging, tweeting, posting, linking in or any of the other social...

Inflation’s Impact on Small Businesses In an Uncertain Economy

Inflation’s Impact on Small Businesses In an Uncertain Economy

Five ways to address operational changes All businesses are affected by an uncertain economy. Increases are only positive when they impact the bottom line. Small and medium size businesses often do not have the staying power to survive when one or more of the factors...

P.O.E. Part 2- Marketing Tips Which Will Resonate with Your Audience

P.O.E. Part 2- Marketing Tips Which Will Resonate with Your Audience

Here are six considerations before starting and executing tactics in market With P.O.E. the goal is instant value recognition, an automatic association of your campaign with a promise of value, that resonates with your audience. Key considerations for executing P.O.E....

Video Gallery

Polls

Sign Up for the Latin Biz Today Newsletter

PR Newswire

Featured Authors

avatar for Pia VelascoPia Velasco

Pia was born in New York City to Mex...

The Art of the Work-Life Balancing Act

Money

Talent/HR

Legal

Marketing

Strategy

My Unusual Path to Launch a New Business

My Unusual Path to Launch a New Business

Understanding the value of stepping away from a large corporation to build my Hispanic business This is my entrepreneurial story. Like many Hispanic businesspeople Fortune 500 companies are great to work with until they interfere with your core values. That's the...

Latin Biz Today Salutes Our Veterans

Latin Biz Today Salutes Our Veterans

Many Hispanic veterans played a vital role in protecting democracy and keeping our nation safe Today we honor veterans and active duty military personnel for their sacrifices and contributions to keeping the world safe. Here are several examples of Hispanic veterans...

Fashion

Food

Music

Sports

Innovation

Work, Life & Culture

Culture

Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest