It is well known that facing the challenges that can hinder the growth of a business is not an easy task. However, this should not be something that is postponed. Numerous studies have shown that SMEs run a high risk of disappearance in many countries. Jose Duarte, a successful entrepreneur and business expert from Costa Rica, discusses in detail the challenges that hinder business growth so that entrepreneurs can take the right steps and fare better.
Statistics show that 80% of SMEs fail within five years and 90% do not reach ten years. This is alarming data, and it can be cause for concern for anyone looking to start their own business.
Lack of planning is the number one challenge in business. Companies often work in haste and don’t have a plan. It is therefore difficult to achieve your growth objectives. The business leader must give importance to the strategic planning process. Company leaders are responsible for setting the company’s vision, mission, organizational culture, action plans and business goals.
Duarte explains, “Companies that fail to plan are more likely to experience low productivity, low profitability and economic loss. Planning positions your business to lead and be a leader. Failing to plan will put you on the other side of the scale.
Another problem that can hinder business growth is the inability to have a solid marketing plan. Duarte refers to a “good plan” as one that is customer-focused and achieves business goals. Marketing plays an important role in business strategy as it executes processes and takes actions that generate leads for sales.
Duarte adds: “The marketing plan is crucial for companies that want to monetize their sales of products or services. It gives us a clear vision of what we really want, how we want it done, and when we want it to happen.
A marketing plan can make a big difference. This will help you understand the strategy and give you direction for your business.
Lack of a sales plan means the business cannot generate the revenue it needs to fund its operations and strategies. A lack of financial resources can hamper a company’s ability to invest in its growth.
If you want to grow, you have to increase your income. This means investing more and forcing companies to take loans from banks. When allocating resources, it is important to prioritize goals and strategies that will grow the business. Do not stick to a budget that limits its growth.
A key challenge for business growth is creating strategies that attract, retain and sell customers while remaining profitable. This is how a business can continue to grow.
Duarte found that many businesses still use old-fashioned strategies to attract customers. Cold-calling, visiting businesses and sending mailings with portfolios, and handing out business cards are all examples of old-school strategies. The sales target is not reached; salespeople feel frustrated, have high turnover, annoyed prospects, and low sales productivity.
Many companies do not have a sales strategy with clearly defined goals and objectives, just like the marketing plan. The sales plan will help the business grow in a sustainable and safe way. Rodriguez promises that sales planning will allow us to support business growth in terms of revenue, understand our customers’ needs and set realistic goals for the sales team.
Technology today plays an important role in the growth and development of businesses. It is used for marketing, sales, customer services, operations, and many other processes. These are the key steps for companies to enter the digital age.
Refusing to change and refusing to enter the digital age will only bring more problems and challenges for the business. In the near future, it will join the ranks of companies that cannot or do not want to adapt to the Internet age.
About Jose Daniel Duarte
Jose Duarte is from Heredia, Costa Rica. He has been an entrepreneur and business owner for over 20 years and splits his time between his existing operations and finding new opportunities to invest in. When he is not devoting time to his business, he spends time with his wife and two children.