The document outlines several challenges that businesses may face in 2019, including: maintaining integrity in an competitive global economy; effectively managing cash flow and reserves; increased competition from more selection and specialized businesses; developing effective marketing strategies; navigating a changing regulatory environment; solving problems and mitigating risks; and finding and retaining qualified staff.

1. BusinessBusiness
Challenges forChallenges for
20192019

2. Integrity
Business has never faced the type of moral challenges that it faces in
today’s global economy. Everyone is struggling to be more
successful, to make the next quarterly earnings estimate, to keep
their job, to earn a big bonus, or to compete effectively.
The temptation to cut corners, omit information, and do whatever it
takes to get ahead occur every day. And it is important to keep in
mind that without trust, the business will not be able to compete
effectively and it will eventually fail.

4. Cash
Cash is King! We’ve all heard this maxim and it is more true todayCash is King! We’ve all heard this maxim and it is more true today
than ever before. A healthy profit may look nice on your financialthan ever before. A healthy profit may look nice on your financial
statements, but if capital expenditures or receivable collections arestatements, but if capital expenditures or receivable collections are
draining your cash, you won’t be able to stay in business for long.draining your cash, you won’t be able to stay in business for long.
In order to head off this problem, businesses must either beIn order to head off this problem, businesses must either be
adequately capitalized and must shore up cash reserves to meet alladequately capitalized and must shore up cash reserves to meet all
obligations as they are needed and to handle downturns andobligations as they are needed and to handle downturns and
emergencies that may arise.emergencies that may arise.

6. Cash Management
Cash management becomes even more important during
recessionary times when cash is flowing more slowly into the
business and creditors are less lenient in extending time to pay.
For small businesses, handling business accounting and taxes may
be within the capabilities of the business owners, but professional
help is usually a good idea.

8. Increased Selection and CompetitionIncreased Selection and Competition
The ease of starting a business creates a much broader level ofThe ease of starting a business creates a much broader level of
competition.competition.
You might find different business competing for each product youYou might find different business competing for each product you
sell and new business that focus on a single item and spend all theirsell and new business that focus on a single item and spend all their
time and focus on being the very best at just one thing.time and focus on being the very best at just one thing.
This increase in overall selection and more focused completion willThis increase in overall selection and more focused completion will
make it more difficult for businesses of all sizes to retain customersmake it more difficult for businesses of all sizes to retain customers
who can change their suppliers with the click of a mouse.who can change their suppliers with the click of a mouse.

10. Marketing and Customer Loyalty
Along the same lines as increased selection and competition is the
challenge to market to potential customers effectively and retain your
existing customers. Smartphones, social media, texting, email, twitter
and other communication channels are making it easy for businesses
and individuals to get their messages out.
Figuring out the right marketing channels is key for businesses to be
successful in the future.

12. Regulation
A changing regulatory environment is always of concern in certain
industries, but uncertain energy, environmental and financial policy
is wreaking havoc for nearly all companies today.
Whether a demand from customers or shareholders to become more
“green,” or the threat of increased costs due to new carbon taxes,
environmental considerations are among the biggest challenges
businesses face today.

14. Problem Solving and Risk Management
A major challenge for all companies is identifying, assessing, and mitigating
risks, including human and financial capital, in addition to the macro
economy. The lack of a sophisticated problem-solving competency among
today’s business leaders is limiting their ability to adequately deal with risks
facing their businesses.
This is why corporate managers tend to jump from one fire to another,
depending on which one their executives are trying to put out, and in many
cases the fast-changing business environment is what ignites these fires.

16. Finding the right staff
Without exception, every business executive we speak to says that
one of their biggest challenges is staff – finding the right staff,
retaining them, and ensuring they buy into the vision of the business.
We'll freely admit that I have no magic answers here. In fact, if
someone could develop a formula for recruiting and engaging the
right team members, they would make millions.

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