The three most common challenges small businesses face are a lack of capital, a narrow client base, and insufficient marketing strategies. As a business owner, it is easy to feel overwhelmed by each of these scenarios. While it may seem impossible at times, the right planning can help you overcome almost anything. Read the following list of recommended actions if you have been facing any business obstacles.
How To Overcome Business Obstacles
If a single client – or a few clients – makes up most of your profitable income, branching out and finding new clients will be a vital key to maintaining success. While customer loyalty is certainly advantageous, it can be dangerous to rely on such a small group of customers. Informally encourage existing clients – who you know appreciate your services – to spread the word and recommend you to their friends. Even if the friends don’t immediately turn into deals, they will likely need something down the line, and your business will be the first that comes to mind.
With technology use so widespread, there is no excuse not to be a part of the trend. Shockingly, 52 percent of small businesses do not have a website. Of those with a site, 70 percent have no “call to action” on their page, 68 percent have no contact email visibly on the homepage, and 27 percent don’t even have a phone number. These stats are outrageous. Do not fall into this trap. If your business is not on the web, it is essentially invisible. Social media sites are a great place to start. Use Facebook, Twitter, or Instagram as free marketing platforms, and your new site will receive up to 75 percent more traffic.
Below are 10 other business obstacles commonly faced by entrepreneurs and recommended ways to help you tackle them.
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10 Common Business Obstacles
There are quite a few challenges you might run into as a business owner, the good news is there are ways to overcome them. Read through the following list of common business obstacles to learn more about what to expect.
1. Leaving Your Current Career
In the early stages of starting a business, it makes sense to operate alongside your current career. This method is a safe bet to avoid losing your stable income, while exploring your entrepreneurial side. But, if you are serious about running your own business there will come a point when it needs to be your top priority. Unfortunately no one is going to tell you when it’s the right time to quit your day job.
Instead, you need to decide when your business venture is promising enough to provide the level of financial support you require. For many business owners this can feel like a risky move. The good news is that leaving jobs is becoming more and more common, and stepping away from your office job will not create a gaping hole on your resume. Instead, if you ever decide to reenter your previous profession, you can simply explain that you started your own business. If you find success in your business venture, you will not think twice about your decision.
2. Using Repetitive And Ineffective Strategies
If you have ever launched a successful marketing campaign: congratulations, you are one step ahead of the game. Keep in mind that one successful campaign does not equate to a successful business. One of the biggest obstacles business owners face is failing to branch out — even when things stop working. Don’t be afraid to mix up your marketing and communication strategies; in fact, this is one of the best ways to ensure your real estate business’s longevity.
Branching out does not have to be limited to lead generation — business owners should also consider new investing strategies over time. Perhaps you have grown a relatively successful wholesaling business, and it may be time to consider flipping your first house or purchasing a rental property. Read this guide to learn more about different real estate investing strategies and start growing your business today.
3. Feel Overwhelmed After Making A Mistake
It may sound cliche, but everyone makes mistakes. If you missed out on a business opportunity, skipped a big networking event, or even lost money on a deal: it is okay. The best thing to do is to view each obstacle as a learning opportunity. There is no point in dwelling on negative thoughts that could get in the way of new business opportunities. Instead, refresh your perspective and look for ways to improve in the future.
According to the founder and CEO of Bounce, “fear is not necessarily a detriment as it tempers our decisions, forces us to be more analytical in our decision making, and reinforces how important our business is to us. By viewing fear as a tool and part of the process of conducting business properly, we can not only overcome it but use it to our advantage”.
Today’s most successful entrepreneurs have one thing in common: they are constantly looking for ways to improve. If you are stuck in a rut after a mistake — branch out and look for a way to learn something new. I recommend starting with this list of resources for entrepreneurs, and going from there. Remember, every mistake you make in business can become a learning opportunity.
4. Losing Motivation
Are you having a hard time remembering your “why”? Take some time to look for inspiration around you. This could mean researching similar businesses for new ideas or even reflecting on your long-term goals to get motivated again. It is not uncommon for business owners to lose motivation now and then, especially if you haven’t landed a deal in a while.
Another great way to rediscover your motivation is to network or attend a real estate event. Luckily, there are several options for virtual real estate conferences in 2021. Research which ones might be beneficial for your business and register today. These events will help update you on the latest industry trends and reignite your passion.
[ Thinking about investing in real estate? Register to attend a FREE online real estate class and learn how to get started investing in real estate. ]
5. Experiencing Tunnel Vision
Don’t forget to celebrate your wins — even the smaller ones. This practice will help you remember to appreciate your business and all that comes with it. Many investors find themselves with tunnel vision now and then, searching for deal after deal. This mindset can be harmful, as it can lead to careless mistakes or even a loss of motivation. If you have been struggling with tunnel vision, it may be time to revisit your goals. A great place to start is learning more about SMART investing goals. This framework will help you plan (and accomplish) business goals promptly.
6. Are You Overworked and Understaffed
Many new business owners struggle with taking on too much responsibility. After all, it can be difficult to assign tasks when you are used to doing everything yourself. It is crucial to learn how to delegate certain work to avoid burnout. Remember: you can’t do everything yourself even if you want to. That being said, building a trustworthy real estate team takes time. Start by researching virtual assistants and look for small tasks you can outsource. At the same time, begin networking in your area to build connections with other real estate professionals. In time, you will be able to build a solid team to work with.
7. Starting To Forget Your Brand Identity
Building a strong brand identity will take time, and you will need to make improvements when necessary. The most important thing to keep in mind is to stay true to your business’s mission statement. From there — try to be consistent across any platforms or communications that you utilize. Remember, how you do anything is how you do everything. Creating (and maintaining) a strong brand for your business is critical to your future success. For more help on real estate branding, be sure to read through these tips.
8. Have Stale Contacts
When was the last time you updated your contacts list? As a business owner, you should constantly be growing your network. This is the best way to ensure you bring in new leads and remain active in your community. There are a few ways to accomplish this: join Facebook groups in your area, attend networking events when you can, participate in a local investment club, and attend community events to get your name out there. Almost everything you do as a business owner can be thought of as an opportunity to grow your contacts list.
9. Losing Sight Of Industry Trends
A common obstacle investors face is struggling to stay on top of industry trends. No matter how long you have been in business, keeping up with new real estate trends is crucial. Keep an eye on competitors in your area and new technology that could help your business. It is also good to stay up to date on stock market trends and the global economy.
Following industry trends does not have to be complicated — in fact, you can integrate a little research into your daily routine. For example, if you regularly check social media, try following real estate-related accounts for information throughout the day. It is also a good idea to regularly monitor your local market for any updates. Try adding this real estate map to your bookmarks and stay updated on changes to your market area.
10. Running Out Of Capital
According to a study conducted by the National Small Business Association (NSBA), 43 percent of small businesses could not access the capital necessary to put their business plans into action; 32 percent were forced to reduce their number of employees. While obtaining the funds to get your business up and running can be challenging, there are several different ways to find investors. Try crowdfunding or attend a networking event and let your presence be known. You never know where you will be able to secure financing.
Once your business is up and running, it is a good idea to review your budget regularly. This will help you keep an eye on where your money is going each month and make changes as needed. Check out this downloadable business budget template for help getting started.
Bonus: Avoid Over-dependence On Founder
As you build your business, it’s only natural to be the one calling most of the shots. After all, when you start a company you typically have a clear vision in mind for the future. However, as your business continues to develop it’s important to keep other team members up to speed. If not, you may find that the business cannot run without if you need to step back for even a day.
This kind of over-dependence is extremely common among small businesses, where the founder is the only one who knows how to keep all of the gears running. But, this could create some big problems in the future. The best way to avoid this type of dependence is to make sure you have the right team, which we will discuss below.
Bonus: Hiring The Perfect Team
Building a team too quickly can cause you to lose sight of the mission and company culture, but unfortunately, this mistake is all too common in the business world. While you may need to bring on new people to get your business off the ground, be careful not to rush through the process. It is crucial to look for people who understand your business goals and share a similar mindset. This will impact your day-to-day life, office environment, and ultimately the success of your business.
Hire new team members one at a time if you can, and don’t be afraid to adjust as you go. If it turns out someone is not a good fit for the company, it may be best to go your separate ways. Hanging on to people because they have been there for a while does not always translate into a positive work environment. It will take time to find people who share your values and to build trust, but it will all be worth it in the long run.
Summary
The key to a successful real estate business is continuous improvement. The work does not stop when you create your LLC or land your first deal — owning a business is an ongoing process. However, by learning how to overcome business obstacles, you can ensure your business stands the test of time. If you have been struggling to raise capital, secure new clients, or even market your business, try some of the tips listed above. With the right amount of dedication, you can accomplish all of your business goals.
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