5 Problems your Business could Face in 2020 and How to Solve Them

Business Problems 2020

Softbank Group, headquartered in Japan, is one of the most influential and well-known conglomerates holding companies in the world. Its founder, Masayoshi Son, was once touted to be the new Warren Buffett as he took on the world with his ambitious and aggressive strategy. In the last decade, Son showed his mettle by becoming a tycoon as everything he touched turned to gold. But this year, the WeWork Saga, dented his reputation alongside SoftBank, with a big blow.

The IPO of WeWork, which was estimated at as much as $65 billion by its charismatic CEO Adam Neumann, couldn’t see the light of the day. And so, who now controls WeWork, lost around $5 billion in stock value. The lesson we can learn from all this is that if anything can go wrong, it will. And not even a person of the stature of Masayoshi Son will be able to stand against it.

Businesses need to be prepared for problems that might come their way daily on once in a blue moon but can break their backs.

The following are five scenarios that can lead to problems that can make a workplace toxic to work in and can lead to a total collapse of a company or in a dire situation, just like WeWork.

Related Read: Top 10 Workplace Productivity Killers & How To Neutralize Them

  1. A Closed Workplace Environment

A workplace environment that is closed will develop a place where every employee will be afraid to give his feedback or a suggestion. This usually happens when they have to speak up against someone who’s exploiting or against a process that is hampering their productivity. Giving employees the freedom to speak is not a bad thing as feedback and varied opinions can only enhance a workplace environment.

In any workplace, issues need to be raised quickly, so that they can be rectified. Else, a workplace where dissent is not allowed turns the environment into a toxic one and employees are forced to leave it as this will be an easy way out for them.

  1. Complicated Tools and Services

After starting a company, business owners may face challenges in the initial few days as running it smoothly can be difficult. And lack of knowledge in this regard, like assigning tasks and duties to their subordinates can be a headache for managers too. The use of a task manager tool, like TaskQue, can make things easier for not only the managers but also the employees.

In some companies, you will find even basic processes like getting a loan or applying for annual leaves so complicated that most employees are not able to complete them on their own. Problems like these can escalate due to the employees’ lack of knowledge in this concern. Hence, a complex process here is not in the favor of both the workforce and the HR department.

  1. Keeping All Your Eggs in One Basket

Customer retention is the best approach to ensuring a steady revenue stream. However, this also means that businesses tend to rely only on a handful of customers. But think of a scenario in which one of your biggest clients will end the contract. It will jolt any company as they will have to look for a replacement and pretty soon. Diversifying the clientele can save companies from situations like these because getting clients from different industries can minimize the loss.

Take a good look at your client list. If just 2-3 clients are responsible for over half of your revenue, you seriously need to find more clients and from diverse industries, to save you from a dire scenario like the one mentioned in the example above.

Related Read: Top 10 Workplace Productivity Killers & How To Neutralize Them

  1. Growth vs Quality

Businesses try to be productive to become successful. There are certain aspects one needs to think about whether to go all out for growth with some compromise on quality. Small business owners who don’t plan a drastic change, like an increase in their clientele and product/service production, are bound to face the music.

With time, demand for a product increases, and without a proper system in place, things can get out of hand pretty quickly. That’s why the top management must put enough emphasis ongoing for the quality of the goods or services they produce, and growth will eventually come their way.

  1. Understanding the Process

We all go through situations where things don’t work out for us, despite the hard work and sincere effort we’ve put in. Something can be wrong with the process too and seldom we think about it. A bad process can lead to a favorable outcome, and if you continue following that process, it’s unlikely you will ever conclude that the process in itself is terrible.

It’s better to focus on the process and the outcome will be streamlined, even if it will take some time. Think about designing a process from scratch so that you know every detail about it. Then in case of any discrepancy, you can get to the problem very easily.

Final Word

We all know that WeWork is not an outright failure, but the cancellation of the IPO was a big blow to the reputation of SoftBank Group. For small businesses and startups, a good reputation is a valuable asset, and a slight mistake or a lack of proper process in place can ruin it in no time. That’s why it is imperative to think about the factors and scenarios discussed in this blog.

If you think that you can come up with something valuable to add in this blog, you are more than welcome. And if you want to ask any questions you have in mind or want to give your feedback for this blog, please use the comments section below.