The Biggest Threats to Your Business - and How to Fix Them

Modern businesses are faced with more challenges than ever before. Gone are the days of simply exchanging goods based on mutual agreement; today, government policy, the free market, and even our own technology can get in the way of running a successful company. Protect your assets and the vitality of your business with these business tips from your partners at Padgett Payroll Services®.

Increased competition. It has never been easier to become an entrepreneur. It seems like everyone is suddenly a business owner with their own license, trademark and niche market. The free market allows for endless amounts of competition. If your business fails to achieve the client’s expected results, prices are too high, or customer service is simply lacking, your customers will go elsewhere. The best way to increase your customer service and keep costs down at the same time is to streamline the business. Outsource payroll and payroll tax management, automate contracts, and eliminate any time-consuming tasks that aren’t absolutely vital to the health of the company. Once unnecessary tasks are eliminated, your team can focus on quality control.

Government policy. Regardless of political views, it is undeniable that government regulations have an impact on privately-owned businesses and publicly traded corporations alike. Right now the government regulates all aspects of business to a certain extent: advertising, labor laws, environmental impact, privacy, as well as the safety and health of employees. Recent changes in business law changed benefit requirements based on the number of hours employees worked. The best way to handle government regulation is to stay up to date with all the latest laws and policies. Follow every rule as precisely as possible and pay particular attention to the financial aspect of your business to make sure employee payroll tax is paid on time and in full. The IRS in particular is not known to forgive and forget.

Information overload. Consumers are used to advertising taking over their social media, television, newspapers, radio, and even billboards. Our communities are so overwhelmed with catchy jingles and emotional appeals that it has all become “noise” – easy to ignore. The key to overcoming this world of chatter is to identify your target market and spend your precious advertising dollars only on those individuals. Get to know how they view your company and what kind of marketing works with their age group. It pays to know how your business is perceived in the real world.

Technology. The evolution of technology has made it so business can take place faster than ever, but it has also created a new threat to the modern business: the technological advantage. Many companies will purchase the latest and greatest technology to achieve the advantage over competitors – a strategy that works for a while, or until their competitors upgrade the following year to an even newer model of the same equipment. This could impact anything from employee payroll services to the creation of your product in a factory. Don’t let competitors intimidate you into spending more money than planned on technology. Create a long-term plan for upgrading your system and equipment and stick to it.

There will always be threats to running a successful business. As a savvy business owner, it is important to not only navigate these pitfalls, but to anticipate them as part of your standard long-term business plan. Take advantage of business services that are available and invest in simple solutions like outsourcing payroll administrators or hiring a marketing company to take the burden of advertising off your own employees. With the right long-term plans in place, any business can be successful no matter how small or large.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.