Many companies fail; many succeed, but all companies must face challenges. If a company does not have any challenges to face, either the company has already failed and out of business or it has not been established yet.
Challenges mostly known
The first challenge for a company is to maintain business at the desired level or higher. Every company will need a threshold level of sales or income through a level of business running monthly, annually or by the predefined period of time. When this does not happen and the income goes below the tolerable range, the company suffers. The next one is the professionalism. When a company does not have the right people in the right places to manage business, the company definitely will face the problem.
An example may be chemist with a PhD in Analytical chemistry being the marketing executive at an IT company; that is a fail! Another common challenge most companies face is the over credited accounts. When your business goes on credit, you should have a minimum level established and know that your business is below the level; and when it happens, that is a fiscal challenge. The economic fluctuation locally and globally is one of the influencing factors of all businesses. When the economic situations of the region, country or the world change, all businesses definitely face challenges, regardless of whether the business is good or not. Taking the right step in the right time can turn fiscal challenges into tremendous achievements.
How to deal with the issue?
If the business goes below the desired level, the financial policies have to be changed to support higher sales, or the sale levels have to be adjusted according to the finances available; this is the situation when companies reduce the number of office employees and recruit marketing employees. When the person in a position is seen as not suitable, the person has to be replaced with the right person; furthermore, whoever is taken away from the position should be used within the company in a different place where the person will be useful, because the person did not have knowledge of the position, but had knowledge on the company. Losing such an employee immediately is a disaster; no theory books will tell you that, but that is the fact; keep them with you.
When you see your business is going down in credit, stand straight to cut the loans or reduce the credit sales, after all, if you recover from the credit problem you can reestablish sales; but if you do not recover from the credit trouble, you cannot reimburse the sold! Almost no one can change how the economic situations will be the next day; it so happens, but everyone can make a qualified guess and be ready. If it is late, the undesired condition has come unpredicted; the business strategies have to be changed before it is too late. Loan issues can also be solved through consolidation where all short-term finance is gathered into one long term loan with lower interest. This can be through a secured or unsecured business loan, although each carries their own risks.
Leaders to have their eyes open
This means that business leaders must be people who are objective. Before they can prejudge any alternative or possibility, they must be ready to evaluate it. Most of the leaders are almost paralyzed owing to their narrow perspectives. This means that they only examine one aspect or detail of a challenge or issue. Therefore, they end up overlooking or neglecting the bigger picture which is more important.