Navigating Business Challenges: How to Grow Your Small Business Profitably

In my business coaching business,I often found myself fielding questions from entrepreneurs seeking advice to overcome small business challenges and build profitable businesses. While I have provided guidance through various channels, from phone calls to text messages, the increasing demand for insights has led me to realize the importance of sharing my knowledge more broadly. Hence, this article aims to offer actionable strategies to help small business owners and entrepreneurs in navigating the complexities of business ownership and achieving lasting success.

Major Small Business Challenges:  Marketing and Selling

Small business success hinges on the ability to effectively market your products and services, yet many small business owners struggle with this fundamental aspect of business growth. Despite having aspirations to increase sales and revenue, and grow profit, they lack the requisite skills, systems, and structures to achieve those goals.

Many entrepreneurs operate  with a quick-fix mindset. They believe that superior products or services are everything they need to attract customers and succeed. However, this is far from the truth. The reality of business is that success transcends superior products and services. It requires planning, hard work, and commitment. And, with disciplined execution of the right actions, anyone can grow a successful and profitable business.

Navigating Entrepreneur’s Wealth Pyramid

The Entrepreneurs’ Wealth Pyramid reveals that 1% of entrepreneurs achieve great wealth that sets them apart from the rest. This represents an elite group who have mastered the art of strategic decision-making, relentless commitment, and unwavering focus on their long-term goals. 4% who find themselves in the prosperous category have managed to carve out a comfortable niche for themselves. The 15% who succeed and make a good living demonstrate the potential for financial stability and moderate success. 

However, the picture becomes bleaker as we move down the pyramid. For instance, 20% are categorized as poor and broke, highlighting the harsh reality of a significant number of entrepreneurs who struggle to achieve financial security. The largest segment, comprising 60% of entrepreneurs finds themselves in the challenging position of merely getting by. These individuals struggle with the daily demands of business ownership without experiencing financial breakthroughs.

This distribution underscores the importance of strategic decision-making, efficient resource allocation, and a keen understanding of market dynamics in determining entrepreneurial success. 

Instead of focusing on scaling up their ventures and implementing growth-oriented strategies, many entrepreneurs are stuck with daily tasks that limit their potential. As a result, what started as a promising business endeavour gradually devolves into a job that consumes their time and resources without yielding substantial financial rewards.

Small Business Challenges: Why 80% of Entrepreneurs  are broke, poor, and struggling 

Starting a small business begins with a big dream — the dream of adding value to the marketplace. But for many entrepreneurs, that dream often turns into perpetual nightmares. Little wonder, 80% of small business owners struggle to make ends meet.

This raises some important questions:

1. 1. 1. Why are some entrepreneurs successful while others fail?
      2. Why do many work less hours and achieve outstanding results, while others work long hours and feel frustrated?
      3. What is missing?

From my experience of coaching entrepreneurs, small business challenges can be classified into two categories: the  Complexities Trap, and Knowing-Doing Gap.

Let me break them down in detail.

Small Business Challenge #1: The Complexities Trap

In today’s fast-paced business environments, complexities seem to be one of the biggest universal small business challenges facing entrepreneurs. This occurs when business owners get involved in too many activities, resulting in inefficiency and an inability to adapt and innovate. 

At the core, complexities are caused by the absence of structure and the over-complication of systems and processes.

Let me explain…

When you first started your business, it was easy to manage everything on your own. There was little demand for your time and capabilities, and you were highly motivated. However, as you began to generate more sales or win contracts, things started to get more complicated. You might not have noticed, but with each new sale or contract, your workload and responsibilities increased. This means that you now have to attend more meetings and keep track of additional sets of records. Sometimes, you may even have to enter into new obligations, deadlines, and relationships that are more complex than before.

Aside from the complexities arising from business transactions, environmental factors also play a significant role. For example, uncertainties around government economic policies, technological advancements disrupt the global market, adding layers of complexities also. To make matters worse, your competitors can re-engineer your best products, adapt your best strategies, and lower prices without any recourse to you.

In reality, a large number of entrepreneurs experience significant levels of complexity without realizing it. This often has devastating consequences if left unchecked.

How Complexities Add to Small Business Challenges

Many of my coaching clients approach me for assistance when they feel trapped in complexities. Here are a few signs that can help you identify if you are trapped in complexities. 

Firstly, you have too many activities going on in your life at the same time, leaving you with no space to think about your future. Even when you try to think, it becomes difficult to see a clear direction of the future you desire because you are preoccupied with many unimportant tasks.

Does this resonate with you? Alternatively, do you happen to know someone who has experienced this now or in the past?

As an entrepreneur, you often have ideas about where you want your business to be, what you want to do to get there, and the results to see when you get there. However, all these ideas are stored in your head. You have no time to write them down, assign deadlines, and get clear on how to turn them into reality. Sometimes, you come face to face with new business opportunities, but you can’t get them. Despite working hard and sometimes late into the night, your income remains stagnant and even lower sometimes, every year.

Complexities are the biggest small business challenges facing entrepreneurs all over the world. In fact, it cuts across industry, sector, and geography; and except for the Complexities Trap, entrepreneurs do not have any problems at all.

The Effect of Complexities on Entrepreneurs

Three things happen when entrepreneurs are trapped in complexities. 

They are in danger of experiencing greater…

1. Confusion,

2. Isolation, and

3. Powerlessness

Let me explain…

When small business owners are feeling confused, much of what’s happening in their entrepreneurial world can no longer make sense to them. As a result, they may lose sight of the opportunities available to them in the future. Even if they imagine such opportunities, they may not pursue them because they feel isolated from people who could support them. As time passes, they may feel disempowered and unable to think creatively about what’s next for them. However, even when they eventually identify what they need to do, they may not commit to it because they have become too powerless to hold themselves accountable for the results they desire.

I hope this is making sense to you.

In my experience, this is a common cycle that keeps 80% of entrepreneurs in the world poor, broke and frustrated. To make progress and reach your next level of growth, you need to understand how complexities impact your business, and how to deal decisively with it.

Overcoming Complexities and Navigating Small Business Challenges

Entrepreneurs often make critical mistakes when dealing with complexities. They often think that working harder is the solution to their problems. However, this approach can be counterproductive because the harder you work in a complex environment, the less productive you become. This is because complexities can make you feel confused, isolated, and powerless.

The strategies to break through complexities and navigate your small business challenges are like going back in time to when you first started your business. This will allow you to have more free time to focus on your money-making activities. By doing so, you’ll become more creative and innovative, and be able to build a successful and enduring business.

The results would be three-fold:

1. 1. 1.  Transforming Confusion into Clarity, 
      2. Turning Isolation into Confidence, and
      3. Transforming Powerlessness into Capability.

The process of transforming confusion into clarity begins with turning your ideas into goals and assigning deadlines to them. This provides a clear sense of direction and enhances your motivation to take action. An important goal I help entrepreneurs set is their revenue goals. This is determining the amount of money they aim to generate from sales within their deadline period. In essence, your revenue goal should be comprehensive and serve as a roadmap for all your marketing strategies and execution.

After setting your revenue goal, the next step is to determine the amount of free time you need to rejuvenate your body. Permit me to say that many entrepreneurs abuse their bodies by not taking enough rest to recharge and stay active. They drive themselves too fast into stress, overwhelm, and burnout. When you are fatigued, your productivity and efficiency levels can decrease. However, in a highly competitive market, it is essential to perform at your best. This is one area where my business coaching program adds incredible value to my clients.

Small Business Challenge #2: The Knowing-Doing Gap

Small business owners often have useful knowledge and ideas about what to do to improve their results. However, there is a significant gap between what they know and what they do — The Knowing-Doing Gap.

Taking marketing and sales, for instance, they understand the importance of attracting and converting ideal prospects into paying clients. However, many don’t make a deliberate effort towards consistently marketing and attracting clients. Instead, they take sporadic actions and rely on hope. The truth is that hope is not a strategy, and businesses don’t grow without an intentional focused efforts and disciplined execution.

Assuming that you want to increase your sales by 5% this year, it is important to recognize that simply acknowledging the need to send emails to prospective clients won’t bring the desired results. Instead, you need to take the time to prioritize your email campaign strategy among other marketing initiatives. This is because knowledge and philosophy alone are not enough; you must take action to achieve your goals.

So, to bridge the gap between knowledge and action, here are some important recommendations for you.

i). Set Clear and Measurable Goals

Before we explore the toic of goal-setting, I would like to ask you some questions:

1. 1. 1. What was your revenue goal at the beginning of last year?
      2. How many of those goals did you achieve by the end of the year?
      3. What disappointments did you experience?
      4. What lessons did you learn?

You can stop reading this post for a minute, and reflect on the four questions. What could be your response to each question?

If you are like many entrepreneurs, you probably did not set any goals last year. I won’t be surprised, though, because goal-setting doesn’t matter to many entrepreneurs.

However, goals serve as a roadmap for the daily, weekly, and monthly actions that drive achievements. As common as it sounds, goals define what success looks like for you and outline the steps you can take to achieve them.

One way I help entrepreneurs overcome small business challenges is by breaking down their goals into smaller, achievable milestones. Helping them articulate the number of sales and prospects they should target and convert over a specific period to reach their goals. This process keeps them focused and motivates them to take the right actions and make progress. I highly recommend you give it a try in your business.

ii). Create a Strategic Marketing Plan

Inconsistent marketing is a major small business challenge that hinders entrepreneurial success and growth. Many small business owners do not know how to create a strategic plan. So, they engage in marketing activities without a plan. This is even worse for coaches and consultants who coach and teach on marketing but fail to implement it in their own businesses.

Some believe that having a good product or service is enough to guarantee success in the marketplace. However, this common mistake can be as risky as going into a battle without ammunition. It frustrates many entrepreneurs to quit.

While offering great products and services is necessary, understanding your ideal clients and their needs, and creating a compelling message that addresses their specific requirements is essential also. In my coaching business, I prioritize creating Ideal Client Persona at the core of marketing strategies for my clients.

It is easy to overlook seemingly insignificant details in planning and end up paying a heavy price. That’s why I work closely with my business coaching clients to help them prioritize their tasks.

Together, we identify the most effective marketing channels, create relevant content, and schedule email campaigns that align with their goals. Having a good plan gives you clarity and help you stay focused on your game.

It is important to acknowledge that even with a well-planned strategy, things can still go wrong. However, a plan in place can increase your concentration on your key actions. It will also help you to track your progress, and modify your approach accordingly. As a matter of fact, investing in planning can prove to be highly beneficial in achieving your goals.   

iii). Be Focused and Committed

Mastering the art of focus and commitment can be a key differentiator between success and failure. Unfortunately, many entrepreneurs can’t focus and commit to goals. They act as generalists, engaging in too many activities that distract them from their primary goals. As a result, they often feel overwhelmed and lack a clear direction to drive their business toward success.

By prioritizing your key actions, you can easily increase your sales and profit. This could be zeroing in on specific revenue-generating activities, nurturing client relationships, and consistently delivering value. Successful entrepreneurs do not reach the 1% top position overnight. Rather, by consistently implementing these actions, persevering through tough times, and pushing the boundaries of innovation, you can reach the top in less time than you think.

iv). Seek Accountability and Support

In the game of football, you cannot simultaneously be a player and a coach. One must play the game, while the other observes and provides feedback. This is the foundation of the accountability partnership, where even the most celebrated footballers in the world submit to their coaches.

Similarly in business, you can overcome your small business challenges by surrounding yourself with accountability partners. These can be business coaches, mentors, and peers who regularly check in on you, and provide feedback and support.

When I work with my clients, I provide them with accountability for the goals they need to achieve. I offer fresh perspectives on their business strategies, check on their milestones, and openly review progress with them. This level of accountability is required to help them make better decisions and navigate obstacles seamlessly. It also keeps them motivated to focus on increasing their sales and profitability, even when in the face of adversity.

Where do you go from here?

As you reflect on the small business challenges discussed in this post and the strategies for overcoming them, it’s time to take action and set your business toward growth and success. 

One step you can take now towards improving your sales and profit is to identify one key area of improvement in your sales process and implement a targeted strategy to enhance it. Whether it’s optimizing your marketing efforts, refining your sales pitch, or enhancing customer experience, focusing on a specific aspect can yield significant results. 

Now, here are some questions to get you going: 

1. 1. 1. What are your dreams for your sales and profit in the next three years? Be specific and vivid, and give a timeline for achieving them. 
      2. What price are you willing to pay for these dreams to become a reality? 
      3. On what day and date do you plan to start taking concrete steps toward your goals? 
      4. What is the one daily simple discipline you will commit to consistently drive your progress?

Your responses to these questions and your commitment to taking action will set you on the path to transforming your business and achieving the results you desire. 

Should you need any more support in this area, do not hesitate to reach out to me using the Contact Us page.