The Five Biggest Challenges that businesses face today
Times are challenging for emerging businesses today. Although opening up your business is an exciting journey and we will never discourage entrepreneurship, businesses today are facing more struggles than ever before. This does not mean that you should stir clear from opening up your new business. We’re here to highlight the struggles so that you can be aware of them and get ready to tackle them head-on.
Uncertainty
Businesses are facing uncertainty; in global economy, in credit markets, in how regulations are doing, and uncertainty in new technology that will affect the business. In turn, uncertainty leads to short term focus. Companies are moving away from long-term planning, and this can destroy value. When setting up your business, you need reactive short-term focus, while also focusing on informed, long-term strategies.
Innovation
Companies are shying away from creating innovative cultures. Changes in companies are getting smaller by the second. The problem can be solved by becoming more innovative while still maintaining a sense of control over your business. That way, your change and innovation will not be overwhelming both to your business and to your customers.
Globalisation
Globalisation is a top concern for most CEOs. Understanding the foreign market is essential for growth, especially when penetrating into new markets with existing products and services. Companies needs to better understand international markets and cultures through better information gathering and analysis.
Supply Chains
Because of uncertainty in demand, companies are facing smaller inventories than ever before. This is dues to the uncertainty of the companies and also uncertainty in supply which is driven by the wildly changing commodity prices which is proving to be more challenging than ever. Some online businesses are shielded from this struggle and are actually on the rise, such as online gambling in Australia and in the US, and in many other countries around the world.
However, most businesses need to develop a supply-chain strategy to overcome this problem and stop being at a disadvantage.
Technology
Technology improvement is running at an exponentially increasing rate. While this has been true for decades, the pace today makes capital investment in technology as much of an asset as a disadvantage. This is due to the fact that a competitor may wait for the next-generation technology and then use it to their advantage.
Companies need to develop a long-term technology strategy to remain flexible to take advantage of unforeseen technology developments. Technology is always on the rise and new developments will always be on the increase.
To navigate the future, companies need to understand that strategic thinking and problem solving are the keys towards success. While entrepreneurship is rewarding the struggles and challenges are constantly advancing which is why you need to stay one step ahead of the game and face these problems, head first.
