Setting up a new business is far from easy and the first couple of years are particularly critical, as the business tries to carve out a share of the market. How does one know if a new business is in danger?
Here are a few signs that a business is in trouble.
- Poor Sales – This might be due to lack of sales training with your sales staff, high prices or lousy service; unless you can fix this, it won’t be long before you will experience financial issues. Salespeople need constant training and motivation and without a dynamic sales manager, your sales targets probably won’t be met. Markets are always changing and it is the sales manager’s job to keep track of market forces and training staff on new techniques.
- Employee Issues – Poor management can quickly lead to employee issues and that can quickly become an industrial tribunal. Whenever you find employee issues, let the experts deal with it. When employees are unhappy, this soon becomes apparent and if you have someone taking care of your HR needs, you can reduce the risk of worker discontent. Outsourcing HR for small businesses have proven to be efficient especially for those just starting out; these third-party specialists can help put in place management policies that prevent worker conflicts. Employment laws are complex and people know their rights; a disgruntled ex-employee can easily file a claim for unfair dismissal and that means you need legal advice, which you receive from your HR agency partner.
- Unhappy Customers – Bad news travels much faster than good and if you have a lot of angry customers, it might be too late already to turn things around. This could be caused by late delivery, poor service or no service at all! It makes sense to do a customer survey every quarter, which will reveal any shortcomings, and you can take appropriate action.
- Staff Leaving – It is often the case that employees become aware of negative aspects in their working environment and if these are not ironed out, people will look for alternative employment. If you outsource your HR needs, you will have an HR advice line for employers in the UK or in the country where you are operating. You will have a team of HR experts on hand to advise 24/7.
- Market Changes – There are times when market forces change and that can have a serious impact on a small business. You have to be able to adapt to changes that are out of your control and with hands-on management, you can make necessary changes before too much damage is done. COVID-19 is a classic example of this and many small businesses could not recover from multiple lockdowns.
A small business is like a sapling, it needs care and attention when growing and every organisation has HR needs, which can be outsourced to get the most out of your employees. From recruitment to payroll, there are many aspects of managing a small workforce. If you become aware of any of the above, take the appropriate action while you can.