The 4 Major Business Obstacles of Change

Consistent with business growth and change are the inevitable business obstacles.


In almost every stage of a company’s lifecycle there will be business obstacles that pose a significant threat to the overall success and vitality of businesses. We have identified four major obstacles that almost every company from start-up stage to mature stage experiences at some point.

Here are the four major business obstacles to be aware of: 

1  Liquidity the first major business obstacle

Liquidity primarily occurs in the start-up phase for newly established companies. Companies at this stage are often times not ready to take on bank financing and/or equity investments due to the fact that they are simply not a bona-fide company yet-meaning they have little to no sales and/or infrastructure to support efficient operations. Companies need liquidity to cover basic working capital needs, such as inventories, rent, utilities, etc… When companies lack liquidity, the ability to cover these costs will inevitably become non-existent.

Takeaway: lack of liquidity prevents companies from covering the expenses that will allow them to grow, thereby negating the probability of success.

2.  Sales the second major business obstacle

A sales pipeline deficiency primarily occurs when companies fail to implement a proper sales protocol. Just like every mainstream corporation needs a steady pipeline of products, every company needs a steady pipeline of sales. This assertion holds especially true for smaller companies due to the fact that-while compared to larger companies they can’t afford to absorb periods of declining or stagnant sales. Small companies live and die by their ability to close and attract sales; however, time after time smaller companies neglect to instill a consistent and effective sales pipeline protocol.

Takeaway: without a proper sales pipeline set in place, your business is operating on the hope of new sales.

3.  Quality product delivery the third major obstacle

Quality product delivery arises in a wide array of situations, however it’s often found when there is either a communication discrepancy between that of the customer/client and the company, or when the company is focusing their efforts on price reduction rather than product quality.

To elaborate, quality product delivery is a two way street, in that it requires a company to have the competency and knowledge to produce or provide a quality product and/or service, but it also requires the company to be in constant communications with clients/customers in so that the company understands exactly what their customer/client wants. If what you’re providing to your customers/clients is not exactly what they want, then in essence, you are failing to overcome this obstacle, and in the long run your company will experience increased client/customer attrition.

Takeaway: companies must ensure that what they are providing clients/customers is exactly what they want; if it’s not a matter of communications then ensure that the product is of respectable quality.


Alex Hart
Alex Hart
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Partrners. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.

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