Survey Results Highlight the Top 6 Challenges for Small Businesses

Small business owners often struggle with limited resources and their decisions how best to use their cash flow. Faced with what has become the COVID-19 endemic, we decided to run a survey to determine the current issues that are most pressing for small- to medium-sized business owners. These challenges were grouped into two categories: 1) marketing and 2) financial/operational.

Integrated Marketing Needs

1,118 respondents made 3,251 selections that told us that their top six greatest marketing pain points, in order of significance, include:

1. Public relations management ( i.e., timely press releases, a ready-to-send media kit, etc.)

2. Existing website management and development

3. E-commerce capabilities needed

4. Branding and logo identity

5. Email marketing (i.e., regular newsletters, automatic replies, etc.)

6. New website needed

With uncertainties regarding fallout from the COVID-19 endemic, it is no surprise that online presence, reputation and brand management are front-of-mind for many business owners.

Financial & Operational Pain Points

When asked about the greatest financial and operations challenges faced by small businesses, 1,114 survey respondents made 2,847 selections that resulted in the following ranking:

1. Supply chain and inventory management

2. Project management

3. Professional services management (i.e., human resources, IT, legal, accounting, etc.)

4. Cost analysis and pricing

5. Company valuation

6. Financial reporting and analysis

The most pressing challenge identified by small business owners, supply chain and inventory management, does not come as a surprise. Key industries face labor shortages and material shortages at the same time logistics costs are increasing. The Economist recently reported a significant price increase in container shipping, usually the cheapest mode of transportation, that they didn't see declining again soon in 2022.

The ability to source product at the right time - and price - directly impacts cash flow and profitability, which explains why the survey respondents seem keen to focus on their bottom line. Product shortages experienced since 2020 have impacted both the service industry (i.e., hospitality, food and beverage, healthcare, etc.) and retail industries (i.e., auto, cycling, sporting goods, etc.).

Timeline to Resolve: Now

Responses to the final question related to the timeline to resolve these pain points indicated that time is of the essence and that these challenges are pressing issues.

75% of 1,093 respondents said that they wanted to address these challenges within the next 6 months. 41% of those surveyed indicated that they wanted improvements within the next 3 months.

Hiring a Consulting Agency

Businesses often hire external consultants to provide expertise that they don’t have in-house (or on staff). When hiring a consultant, ensure that there is a system in place to track the results of the plan designed by the consultant and implemented by you. There should be "actionable, observable outcomes that you can clearly see impact your profits and bottom line."

Because hiring a consultancy is a common practice, we asked the respondents the following question in the survey: "What made working with a consulting agency in the past either a positive or negative experience?"

Respondents mentioned characteristics, such as professionalism, timeliness, relevance, trustworthiness, integrity, and cost as key to a positive experience working with a consulting firm.

Here is a sample of anonymous responses we thought were worth reposting:

"The consulting agency is neutral when looking at problems. It can look at the enterprise [from the outside] and not be affected by the enterprise's atmosphere and shareholders' interests."

"Beyond their expertise and experience with a particular issue, consultants can offer some advantages over permanent staff. First, they can bring objectivity to an organization. Their fresh thinking can help to restart projects that have lost momentum, or that have become bogged down by in-fighting. Second, consultants can focus on one project or issue. This is because they're not weighed down with other responsibilities, as in-house managers can be. This can bring clarity to a project, especially when a deadline is looming."

"Sometimes marketing is hard because you're spending your energy the wrong way. Build templates for all of your marketing and sales processes so that you rarely have to start from scratch. Not only do they save you time, they also make sure you keep your resources focused on your goals."

"The consultation was completed, and they followed up on the completeness of the consultation within six months. Fantastic."

"Adaptability; diversity; dynamic; controllable."

"The rapid development of an enterprise cannot be separated from the support of the consulting company, which is the teacher of the enterprise."

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Christie Solomon, MBA, established Elevate Next Business Consulting with more than ten years of broad experience in corporate operations, marketing and administration. Contact me today to schedule a complimentary session to see how we can help you position your company to achieve the next level of growth!

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