CEO and founder of a software development company Kitrum. Have an incredibly talented team of developers spread across the globe.
You may have heard of famous business killers like competition or lack of capital. However, as the founder of a software development company, I believe there are five, often little-known, business killers that entrepreneurs should be aware of and avoid in their businesses.
1. Lack of CRM systems
In my view, one hidden business killer is when a company lacks a customer relationship management system. A CRM system can help you manage customer information, track sales and marketing efforts, streamline operations, and improve customer service. Without a CRM system, you can easily get lost in a mountain that is difficult to understand.
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 dollars are going to the right people. You can also use a CRM system to track customer satisfaction and resolve any issues or complaints.
Investing in the right CRM system, however, is key to growing your bottom line and avoiding costly mistakes. Make sure you hire a person or team with expertise in CRM system administration and make sure your system is “customizable” to your custom needs.
2. Hiring an unprofessional, unmotivated team
I have observed that a lack of qualified manpower combined with low motivation can be disastrous. Not only will your business suffer, but morale among the team can also plummet, leading to more problems.
Hiring the right people is essential to prevent this from happening. 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 such as regular bonuses and flexible work schedules to keep employees motivated and productive. The key is to provide incentives that encourage them to do their best.
Finally, make sure everyone on the team is on the same page and understands their roles. This helps keep everyone motivated and focused on achieving the company’s goals.
3. No branding.
Branding is critical to creating an identity for your business and helps you build customer loyalty. Create a consistent 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 light possible.
However, remember that branding is not just about 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 loyal customers. This will help you build your brand and reputation.
To do this, track every project in your company and, in turn, every customer. You need to know what is happening in a project and if there are bottlenecks or conflicts that could affect your clients. Otherwise, you may end up with a terminated contract. Second, always say “thank you” to your customers. Third, don’t forget to help the world. Maybe your company wants to recycle, donate, or support a cause you love, etc.
4. Poor cash flow management for emergencies
One of the biggest hidden business killers is poor cash flow management. Cash flow management includes everything from budgeting and forecasting to efficient invoice processing and prompt collection of payments.
I find this is an area that many small business owners overlook. Poor cash flow management can have serious consequences for your business, especially during times of emergency or uncertainty. Based on my experience as a founder, here are some tips to consider when managing your company’s cash flow:
• Budgeting: Create a budget and stick to it. This will help you track and control your expenses and income. Make sure to update your budget regularly as expenses or income changes.
• Forecasting: Make regular cash flow forecasts and update them when needed. This will help you anticipate any cash flow issues and plan accordingly.
• Set up an efficient invoicing system to send invoices quickly and accurately.
• Payment Collection: I suggest having a secure payment process to collect payments. Also create a payment policy to ensure all payments are processed promptly.
• Monitoring: Monitor your cash flow regularly to identify potential issues before they become major problems. By paying close attention to expenses and income trends, you can adjust your budget or cash flow forecasts as needed.
Effectively managing your cash flow can help you avoid costly mistakes and keep your business running smoothly even during difficult times. Take the time to review your current cash flow management strategy and implement any necessary changes to ensure your business is well prepared for any unforeseen circumstances.
5. Using the wrong strategy
Using the right trading strategy is critical to success. This helps you identify opportunities, set goals and objectives, and evaluate your progress. However, using the wrong trading strategy can be a real killer for your business. Business analysis is key when it comes to getting your business strategy right. Regularly analyze and evaluate your organization’s structure, performance and financial health to make better decisions.
No business wants to suffer from a hidden killer, so it’s important to take action and protect them. Whether you’re struggling with poor customer service or poor communication, many factors can cause businesses to lose business or go out of business if not handled properly.
But with some proactive strategies and forethought, you can protect your organization from the five missteps listed above. Invest in proper customer service training, take the time to communicate effectively with customers, make sure you have accurate financial records and forecasts, and don’t forget to regularly review your policies and procedures. With these proactive steps, you can reduce the risk of these hidden killers sneaking up on you and destroying your business.
The Forbes Business Council is the leading growth and communications organization for business owners and leaders. Am I eligible?