How SMEs can generate sales to alleviate concerns
Highly ambitious small businesses have voiced concerns over generating new business under current economic conditions and are fearful it may impact on their finances.
That is according to research from Santander, who identified issues surrounding the creation of new business, legislation changes and maintaining sales as the main reasons for anxiety.
Gaining new customers was an issue in the eyes of 44% of small firms as a failure to generate additional business could potentially disrupt growth plans in 2015.
Issues relating to administrative red tape and sales volumes were named by 27% and 36% of firms respectively while cashflow and employee management were both named by 35% of companies.
Ambitious firms voice concerns
Firms who described themselves as highly ambitious were found to be more likely to have concerns over generating business.
Business priorities were found to vary relating to the size of a business too – those with annual turnovers of between £1m and £2.5m were focused on sales while larger businesses saw staff management and credit risks as key issues.
New customers are the lifeblood of firms looking to expand and the results of the survey suggest that many businesses are aware of the issues they face.
In order to increase the likelihood of driving new business, many different aspects of a company must be focused on.
Good customer service is vital as it encourages customers to use a company again, as well as encouraging them to recommend a service or a brand to others.
A strong grasp of finances is also required to ensure that cash flow issues do not occur – poor management could result in the need for business rescue measures or even insolvency.
Generating sales can usually be related to increasing awareness of a firm’s product or services, so advertising and marketing strategies are essential.
Social media offers a free platform to advertise on, while some campaigns can be highly effective if targeting certain social groups or customers.
Identifying these possibilities is important and a firm should ensure that it is aware of all aspects of business before developing plans to drive sales and expand.