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What are the Biggest Hurdles for Agencies & Small Businesses?
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6 Ways Agency Owners Can Own 2017!

What are the Biggest Hurdles for Agencies & Small Businesses?

If you own a small business, you may feel that the problems that your business is facing are unique. But this is not exactly true. The biggest hurdles that your business is facing are similar in essence to those your competition. There are several challenges that are acting as major roadblocks to the ascent of agencies and small businesses. Some of them are discussed below:

  1. Marketing

One of the biggest obstacles to the success of relatively small concerns is marketing. To get the word out about your business is important for its success. With the help of technology, you can now test and bring a product to market easily, but it is quite difficult to cut through the noise on social media as well as other marketing channels and differentiate your brand and business.

  1. Hiring new employees

A hurdle that several small concerns must overcome is while recruiting a workforce. They find it particularly difficult to handle problems related to the hefty costs associated with getting a workforce on board. Sometimes the total cost of the process of bringing them on board  – bonuses, training, equipment, benefits, taxes etc. – can range anywhere between 1.5 and three times the salary assigned to that particular designation. That is a really notable amount of investment for companies that are usually already hard pressed for money, to begin with.

  1. Relationship with customers

According to experts, the key to keeping your small business blooming with success is proper communication and the relationship that you have with your customers. Not all businesses see the face of success. Small businesses that achieve success and continue to survive are the ones where the owners, as well as the employees, have a great relationship with their customers. Know what your customers want and ask them how you can do better or what can be added. For agencies and small businesses, relationships are of paramount importance. In this digital age, it has become important to develop a bond with customers.

  1. Relationship with the government

To make local government work for you, take the idea of relationships to the next level and use those skills. According to experienced businessmen, small businesses which reach out and become a staple in the community are the ones that get the most support from the local government. You can be present at community events or join the chamber of commerce so that the local governments support you. If you make an investment in your local community, it will affect your business positively. Also, to build valuable customer relationships, you can volunteer to work on events or serve on local boards.

  1. Cash flow management

A variety of problems related to cash flow is the cause of a headache for many companies. And for agencies and small businesses, the main problems are to do with unexpected outgoings of cash, clients deferring payments and expenses that seemingly need to have been paid for yesterday. However, these problems do not come without solutions. While product demand is far more difficult to control in-house, cash flow related problems can be resolved. In order to improve on your invoicing and budgeting, there are a number of newly designed solutions that are available. All you have to do is to find a suitable one.

  1. Increasing profits

Agencies and small businesses that have five to ten employees face problem such as increasing profits. There can be many reasons behind this, but the main reason that it highlights is the inability to remain a low-cost leader against the competition. To stay ahead of your competitors, what you can do is to innovate and optimize constantly.

  1. Not becoming dependent on major clients

Client dependence is a huge issue for several organizations, mostly those with under ten employees. In case the organization has to depend on say just one or two clients for the major chunk of the money they make, then that is a sign of hitting the danger zone. The balance of power is disturbed unfavorably for the firm if this were the case. It would be hard for them to survive – to just remain operational with minimal profits. Reaching this stage is not at all recommended. If you want to your firm to grow, you must necessarily diversify your clientele.

You might, in all probability, as the owner of a small concern, have to face hurdles that CEOs of large companies may not face. However, to look at the brighter side, being small business owner does have a number of benefits. Being small in size, you are much better equipped to respond to volatile circumstances, as well as more flexibility. Pay more attention to the strong points of owning a small business and make more effort to emphasize and use them in advantageous ways for you to overcome challenges. The first step would be to overcome them.

6 Ways Agency Owners Can Own 2017!

Each and every business or agency owner wants to grow their business and expand. In the world of business, you are either growing or you are dying. So it is very important that you get in motion and grow. So how are agency owners powering this growth? Apart from hiring, here is what you can do to take your business to a whole new level in the next 12 months.

  1. Go online and get better at SEO

In this age of digitization, it is extremely important for your business to have a great internet presence. People use the internet for almost all information nowadays. The first thing that you need to know is what kind of internet presence your business has. It is not enough to just have a good looking website. You need to know the ways of attracting new visitors. And this is exactly where SEO comes into play. As there are millions of websites that are active on the internet, it can be quite difficult for your business to be found online without proper SEO. There are a number of rules as well as protocols in SEO that help your business to get discovered. If you are not already involved in SEO, now is a good time to reconsider. If a person is looking for “web designing services”, your website should rank on top. And this is exactly what SEO does. This is also true for e-commerce websites. If you are a personal trainer, you can sell subscriptions to fitness videos, or if you are into the clothing business, you can sell branded T-shirts. Having an e-commerce presence could greatly benefit your business.

  1. Remote hiring

Remote hiring can be great for your business to grow in 2017. These remote workers not only have the same skills as their on-site counterparts, but their payroll costs are also much less compared to those associated with traditional employees. You can hire them from a talent pool that does not have any geographical restrictions, as these applicants don’t require commuting to an office. Also, remote workers are dedicated and more productive than regular on-site employees. With the remote hiring, your business can take advantage of reduced personnel costs.

  1. Know how to organize your business

Organization and prioritization are the two main elements that one needs to run a business. When it comes to operations, make sure that your business organization does not disintegrate into any type of complex blame game. If you have any queries regarding lean business operations, then you can take the help of books. This will be of great help. You need to know about the quality of the agencies that are not only successful but also have maintained their success. There should be no complication in your business operations. To make your business a grand success, it should have three main operational components – the right staff, level five leaders and confronting brutal facts. If a business understands all these three components properly, then the managers can optimize as well as simplify operations.

  1. Focus on your customer

You can make the profit from your business, only if you have a good customer base. Your customer will come for the first time, if they are satisfied with your service, they will come for the second time, and finally, they will bring their friends with them. This is what you want, right?  In this regard, small agencies have more advantage over large companies. Small agencies get to interact with their customers at a more personal level. This does not mean that large companies do not care about their customers. Actually, it is quite challenging to put the CEO of a company face to face with customers. Give priority to your clients or customers, make sure you understand what they want and then cater to their specific needs.

  1. Pay attention to cash flow

You need to define your free flow of cash. Generally, cash flow is calculated depending on what is left after making all the non-cash adjustments and payment of all the necessary financial expenditures. You will be able to gain new opportunities and perspectives when you start considering free cash flows before making business decisions.

  1. Invest the retained earnings wisely

If you run a successful business, have the great understanding of the balance sheet and want to explore other opportunities, you have two options – you can either choose to invest in external assets that are non-operational subsidiaries, or you can invest your retained earnings back into the operational business. Deciding what to do can be tough. In many cases, the right decision can be to reinvest retained earnings into the organic business. But there are cases, where small business owners fail because of their overconfidence from the previous success and end up killing both the businesses. It will be good if you don’t invest huge capital in low-probability business options and invest in assets that are non-operational.

Your business may face challenges, but these six ways of growing your business can make your business stand out in 2017. Just focus on simplification and understanding your free cash flow, and will be able to get the most out of your business.

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