Introduction 

2021 will be a big year for business, as we are currently living in one of the worst environments for an organization/business to succeed. Due to the current challenges that 2020 gave us, many small businesses such as a self-employed tradesman that does not get the recognition their business deserves. This could be due to not having enough advertisement strategies, the product they are trying to sell is not essential during the current situation. With the many challenges in the world today, a future for any business is not guaranteed. 

Challenges that are in the business world 

Most businesses within a contemporary society will encounter difficulties and challenges. If an organization is to be deemed successful it must be able to overcome these challenges and actively prepare for any that may appear within the future. One of the biggest challenges is getting through a pandemic. Unfortunately, many businesses in 2020 were forced to close, due to massive loss in revenue, customer footfall, and several lockdowns enforced by the government. 

We have chosen four challenges that we think are the most relevant today. 

These challenges are: 

• New Customers 
• Managing revenue 
• Beating your competitors 
• Government Restrictions over COVID – 19 

New Customers 

To start a business, you will need clientele. This is essential for a business to succeed as it is one of the core principles of business. To reach customers who would want to purchase either a product or services provided by a business, that business must raise awareness of its wares and advertise itself locally. This can be done by advertising on local social media groups, asking a customer to tell family and friends, or putting an advert inside of the local newspaper or in the form of a jingle of the local radio station [1]. If companies are finding it difficult with keeping customers, they will try reasoning with the customer for feedback on the services that they provide and ask what could be improved to make a better experience for the public. 

One strategy companies use to lure new customers is to offer discounts for new customers or even a loyalty card for future deals. An example of this is the attire organization Matalan and the grocery organization Tesco. Tesco offers its customers a loyalty card known as a Clubcard; this can be used to collect points in exchange for money off vouchers towards your next shop. Another strategy organizations use to entice customers is by sponsoring nearby/worldwide organizations and engaging with the local area.  

 More Information on advertisement can be found on the ‘Introduce your business to a larger audience’ section. 

Managing Revenue 

Revenue Definition 

“Revenue is the Income generated from normal business operations and includes discount and deductions for returned merchandise”.[2] 

 There are multiple ways to manage revenue for an organization, this depends on the method being used[3]. 

Methods used: 

• Launching a merchandise line: 

This can include making hats, mugs, T-shirts, and many other products to make money for your business[3]. This can be seen in organizations like Nando’s who make their sauces and spices available to purchase in supermarkets around the country. Other organizations like Tesla have had a very good effort with making merchandise and sometimes make exclusive items that are sold like a flamethrower or a bottle of tequila[3]. This can help gain more loyal customers and extra revenue on the side. 

• Add a Subscription-based service to your company e.g., Video streaming services 

A lot of companies like Amazon use this method. They are offering many services to subscribe to. The price of regular Amazon Prime is around £80 per year. That is just for one service, there is the option for two more services those are Amazon Prime Video and Amazon Prime Music. The music package ranges from £7.99 to £9.99 per month. The film and television package is £5.99 per month. This is a great way to make more money from your current customers.[4]  

Beating Competitors 

Competing against your competitors can be stressful, especially when one company is doing better than the other. Businesses can get the edge on their competitors with a few simple ideas. To beat your competitor a great place to start would be to know their strengths and weaknesses. These will give you an insight into what to work upon with your employees.  

Another strategy of beating your competition is by looking after and knowing your existing customers, this can help you find out what the customer likes about your business and what makes them feel like you are a trustworthy business. This will entice customers to spend more money within your business making it more successful. 

Organizations may re-brand their company to make it look more appealing and professional. Having a look at your business cards or your website and updating them regularly will help to attract more customers and possibly help you decide which aspects of your website/business cards will bring more customer traffic in the future. 

Government restrictions over COVID-19 

COVID-19 has hit the globe hard. In 2020 the COVID-19 pandemic caused many businesses such as shops, pubs, and restaurants to either close or shut down due to the rapid increase of COVID-19 infections. 

Currently, all non-essential shops and venues are closed and will be not open again until local governments have deemed these safe to do so. Although, shops that offer a click and collect service can remain open for people to collect the item(s) they have bought. 

This is a chart from the Office of National figures to show the impact that COVID-19 has had on businesses. 

In the summer of 2020, the government made the ‘eat out to help out’ scheme to try and get the economy going again. This scheme was only available on a Monday to Wednesday encouraging people to eat out during the week. The scheme halved prices of food and soft drinks (alcohol not included), this worked to a certain degree with pubs and restaurants until the infection rates became alarming again and the government forced the UK into lockdown for the second time, forcing these restaurants and pubs that were finally doing well within the income revenue aspect of the business to close for the foreseeable future.  

We hope these points we have made are helpful. 

Thank you for reading. 

References 

[3] Akhmedov, S., 2021. Council Post: Five Ways To Create Additional Revenue For Your Business. [online] Forbes. Available at: <https://www.forbes.com/sites/forbesbusinesscouncil/2021/02/24/five-ways-to-create-additional-revenue-for-your-business/?sh=58e9d6d1492e> [Accessed 3 March 2021]. 

[7] Knapman, H., 2020. Tesco Clubcard error angers shoppers as they miss out on lower prices. [online] The Sun. Available at: <https://www.thesun.co.uk/money/12885938/tesco-clubcard-error-shoppers-miss-out-lower-prices/> [Accessed 3 March 2021]. 

[6] GOV.UK, 2021. Eat-out-to-help-out. [image] Available at: <https://www.gov.uk/government/news/eat-out-to-help-out-launches-today-with-government-paying-half-on-restaurant-bills> [Accessed 3 March 2021]. 

[1] GOV.UK. 2021. Growing your business. [online] Available at: <https://www.gov.uk/growing-your-business/attract-new-customers> [Accessed 3 March 2021]. 

[4] Henderson, R., 2021. Amazon Prime cost, benefits and everything you need to know. [online] Pocket-lint. Available at: <https://www.pocket-lint.com/tv/news/amazon/141120-what-is-amazon-prime-and-what-do-you-get-for-your-money> [Accessed 3 March 2021]. 

[2] Kenton, W., 2020. Understanding Revenue. [online] Investopedia. Available at: <https://www.investopedia.com/terms/r/revenue.asp> [Accessed 3 March 2021]. 

[5] Office for National Statistics, 2020. Percentage of businesses, current trading status, broken down by industry, weighted, UK, 19 October to 1 November 2020. [image] Available at: <https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/coronavirusandtheeconomicimpactsontheuk/19november2020> [Accessed 3 March 2021].