CEO and co-founder of software development company KITRUM. Have an incredible team of skilled developers spread all over the world.
You’ve probably heard of classic business killers, such as competition or lack of capital. However, as a co-founder of a software development company, I believe there are five, often lesser-known, business killers that entrepreneurs should know about and avoid in their business.
1. Lack of CRM systems
From my perspective, a hidden business killer is when a company doesn’t have a customer relationship management system. A CRM system can help you manage customer data, track sales and marketing efforts, streamline operations, and improve customer service. Without a CRM system, it’s easy to get lost in a mountain of hard-to-decipher data.
For example, a CRM system can help you track customer engagement with your brand. This information can help you create targeted campaigns and ensure your marketing money is going to the right people. You can also use a CRM system to monitor customer satisfaction and resolve any issues or complaints quickly.
However, investing in the right CRM system is essential to improve your business results and avoid costly mistakes. Make sure you hire an individual or team who is skilled in CRM system administration and that your system is “adaptable” to your custom needs.
2. Hiring a non-professional, unmotivated team
I have noticed that a lack of qualified personnel, combined with low motivation, can be disastrous. Not only can your business suffer, but team morale can plummet and lead to further difficulties.
To avoid this problem, it is essential to attract the right people. Take the time to research potential employees and find highly skilled and motivated employees. Ask for references and conduct interviews to determine if a candidate is a good fit for the position.
Also provide incentives for employees to stay motivated and productive, such as regular bonuses and flexible work schedules. The key is to provide benefits that will encourage them to give their best.
Finally, make sure everyone on the team is on the same page and understands their role. This will help keep everyone motivated and focused on achieving the company’s goals.
3. No surf
Branding is an integral part of creating an identity for your business and can help you build customer loyalty. Create a unified experience across all digital platforms such as social media, web design and email marketing to create a consistent brand message. Take the time to invest in a strong brand identity and present your company in the best possible way.
Keep in mind, though, that branding isn’t just about having a well-designed website, business cards, and other collateral; it’s also about how you treat your customers. Focus on building strong relationships with your most trusted customers. This can also help you build your brand and reputation.
To do this, keep an eye on every project in your company and therefore every customer. You need to be aware of what is happening within a project and whether there are bottlenecks or conflicts that could affect your customers. Otherwise you could end up with a canceled contract. Second, always say “thank you” to your customers. And third, don’t forget to help the world. Maybe your company can recycle, donate to or support a cause you are passionate about, etc.
4. Poor emergency cash flow management
One of the biggest hidden business killers is poor cash flow management. Cash flow management includes everything from budgeting and forecasting to setting up efficient billing and collecting payments quickly.
I’ve found this to be an area that many small business owners tend to overlook. Poor cash flow management can have serious consequences for your business, especially in times of distress or uncertainty. Based on my experience as a founder, here are some tips you might want to consider when managing your company’s cash flow:
• Budgeting: Set a budget and stick to it. This can help you track and monitor your expenses and income. Be sure to update your budget regularly as expenses or income change.
• Forecasts: Regularly prepare cash flow forecasts and update them as necessary. This can help you anticipate any cash flow problems and plan accordingly.
• Billing: Set up an efficient billing system that allows you to send invoices quickly and accurately.
• Payment collection: I suggest setting up a secure payment processing system for collecting payments. Also create a payment policy to ensure that all payments are made quickly.
• Monitoring: Regularly monitor your cash flow to identify potential problems before they become major problems. By paying close attention to spending and income trends, you can adjust your budget or cash flow forecasts as needed.
By effectively managing your cash flow, you can avoid costly mistakes and keep your business running smoothly, even during the toughest times. Take the time to review your current cash flow management strategies and make the necessary changes to ensure your business is well prepared for unexpected circumstances.
5. Using the wrong strategy
Using the right business strategy is critical to success. This helps you identify opportunities, define goals and objectives, and evaluate your progress. However, using the wrong business strategy can be a real killer for your business. Business analysis is key when it comes to getting your business strategy right. Regularly examine and evaluate your company’s structure, performance and financial health to make better decisions.
No business wants to be bothered by a hidden killer, so it’s important to take action and protect yourself from them. Whether you’re struggling with poor customer service or poor communication, many factors can cause businesses to lose momentum or grind to a halt if not addressed properly.
But with some proactive strategies and forward thinking, you can protect your organization from the five missteps outlined above. Invest in good customer service training, take the time to communicate effectively with customers, make sure you have accurate financials and forecasts, and don’t forget to review your policies and procedures regularly. With these proactive measures, you can reduce the risk of these hidden killers sneaking up on you and destroying your business.