10 Common Business Problems & How you can Solve them

PROBLEMS: 1) Purpose, 2) Weak Brand, 3) Low Customer Value, 4) Minimal Planning, 5) Change Strategy, 6) Little Tech, 7) Static Skill Sets, 8) Use of Resources, 9) Employee Performance, 10) Employee Turnover.

Intro: Learning how to navigate business problems is an essential skill for professionals in any organization. Businesses might encounter problems regardless of their size due to changing marketing conditions or industry trends. Researching common business problems can help you learn how to prevent them from occurring or effectively navigate challenges for your organization. In this article, we discuss what business problems are and review ten (10) common problems, along with potential solutions, to help you resolve these challenges for your organization.

What are Biz Problems & Categorize?

Business problems are obstacles that a business might encounter as they continue to conduct operations. Learning more about common business problems can help a company develop plans to resolve these obstacles effectively. These types of problems often relate to certain components of a business, such as:

Strategy
Service or products
People
Processes
Applications
Information
Infrastructure

10 Business Problems

Here are 11 common business problems with potential solutions to help you develop plans and strategies for your own organization:

1. Uncertain Purpose

Some companies experience a loss of purpose or uncertainty because of no Goals. This can happen if an organization participates in multiple different industries or frequently changes its Mission Statement. Having an uncertain purpose can affect sales, employee motivation or other processes in a business. To help find purpose, it’s a good idea for Management to come together and collaborate on what they want for the organization. This open discussion format can help all business stakeholders voice what they want for the company’s future and provide direction for the company’s operations. Creating a comprehensive and specific Mission Statement can also help organizations find their purpose in the market. (not Mission Impossible)

2. Weak Brand Identity

Companies that have a weak brand identity might experience low-profit margins or a small number of sales. If a company wants to grow, it’s a good idea to develop its Brand Identity. This can improve customer loyalty and a company’s brand awareness in the market. To improve brand identity, a company might establish its Core Values, Mission & Goals to help employees and consumers understand more about the organization and its purpose. Creating Articles, posting Press Releases or starting Promotional campaigns can help you further educate prospects about the company.

3. Low Customer Value

Creating products that customers want is important for company sales and loyalty. Some companies that attribute shrinking profits to market performance might miss valuable improvement opportunities to enhance their products or services. When companies don’t create products that a customer wants, those customers are more likely to shop at other competitors. Conducting Market Research can help companies better understand their consumers. Analyzing competitor products and services can also help a company find opportunities to make its products or services unique from others in the industry. Some companies also use Consumer Surveys or review Customer Feedback reports to help them learn more about what customers want.

4. Minimal Future Planning

Companies that focus on short-term performance might experience long-term losses. Lack of future planning can also hinder a company from navigating market changes. Creating a traditional Business Plan can help a business plan for future growth & changes. Developing a Massive Action Plan (MAP) can help companies agilely respond to any changing market conditions.

5. No Change Strategy

Sometimes companies want to exit one market and enter another market. Companies that don’t develop an Exit strategy might struggle with transitioning to a new consumer market. Some companies might also experience a buy-out, merger or acquisition. An Exit strategy can help a company take care of its employees and customers. Some items that companies consider in their exit strategies include:

Finances
Business options
Investors
Communication

6. Minimal Use of Technology

Technology is continuously evolving in the workplace and society. Companies that don’t use technology in their processes can experience productivity losses, which can affect sales and profits. Many companies incorporate technology solutions to increase their appeal to employees and customers. Consulting with software companies or hiring software consultants can help companies find technology solutions that work for them. Some technology solutions to consider include:

Automation
Artificial intelligence
Data visualization

7. Static Skill Sets

Companies that hire employees with a set number of skills or don’t invest in employee development can suffer from reduced production capabilities or experience high employee turnover. Investing in employees who have dynamic skill sets or want to learn can help a company develop innovative products or improve its production capabilities. Some ways a company might help its employees develop unique skill sets include:

Conducting training sessions
Supplying tuition assistance
Encouraging internal career growth
Creating new training positions

8. Not using Resources available

Networking with other businesses and industry experts can help a company grow and perform in its market. Not using key resources can limit the potential of a company. Bringing in Consultants or asking advice from other companies in the industry can help a company improve its standing in the market and gain the attention of new consumers.

9. Low Employee Performance

Employees help a company develop its products and create strong customer relationships. Low employee performance can negatively affect production and customer satisfaction, which can reduce profit margins & sales. Reviewing performance reports, production reports & other company reports can help companies identify potential employee performance concerns. Conducting Feedback sessions, issuing regular Surveys and talking with company employees can help an organization improve employee performance & morale.

10. High Employee Churn rates

High employee churn, or turnover, rates can negatively affect productivity or profits. High churn rates can also affect employee morale, as remaining team members may likely have higher performance requirements or additional duties. Understanding the root causes of employee turnover can help a company learn why they’re experiencing higher churn rates and develop solutions to help reduce these numbers.