3 Ways too many competitors affect company registration consultancies in Zimbabwe !

 

Are you having these challenges?

1. Not having enough customers

2. Unable to identify prospective clients

3. Defaulting on loan payments

4. Failing to meet basic needs e.g rent, school fees

About The Author 

 Cain Ndhlovu  is the founder of Sunrise Digital Marketing Agency PL in Harare Zimbabwe. Cain help start-ups, micro, small to medium

enterprises (MSMEs) by freeing them from digital marketing through doing this function on their behalf and supplying them qualified leads that they can easily close on their own, thereby enhancing their sales. Since his property blog Property Matters News tops major search engines’ rankings for certain key words and his Facebook page has a strong property specific following Cain also help MSMEs in real estate like real estate agents, conveyancers and property search sites with digital marketing services that exposes them to exactly the right prospects so that they also improve their sales.

I understand your pain …

I started working with company registering consultancies or corporate compliance firms some time back during my days as a real estate agency employee. Corporate compliance consultancies used to provide expertise on property related tax matters especially those involving capital gains tax (CGT). As a result when I started Sunrise Digital Marketing Agency PL company registering consultancies were amongst my first clients.

In order to market corporate compliance services properly I had to understand their pain points and to do this I researched on their challenges. My inquest led me to a World Bank sponsored survey on micro, small to medium (MSMEs) enterprises in Zimbabwe. The survey says when starting a business 17% of MSMEs are unable to get enough customers whilst 11% have serious challenges identifying prospective customers. The World Bank survey also noted that 2 336 556 MSMEs are not registered. Company registering consultancies are also some of the enterprises affected according to these findings because they fit within the micro, small to medium enterprise (MSMEs) category since most of them have employees between 1 to 6 persons. On a positive note the survey also noted how vast their market is because it says  2 336 556 MSMEs are not registered.

According to the survey MSMEs have a problem of too many competitors and this affects the ability to generate revenue. Failure to generate revenue in turn cause personal, business and financial challenges. Lets take a closer look at some of these challenges.

3 ways too many competitors affect company registering consultancies in Zimbabwe !

1. Failure to find the right business premises

According to the World Bank survey failure to find the right business premises is a main constrain to starting a business for 9% of micro, small to medium enterprises.

The right premises contribute to business success through easy of access and helping in establishment of credibility. If best premises are not available for MSMEs usually it is because of affordability issues.

As the revenue generating capability is crippled by competition MSMEs including corporate compliance consultancies may find rent payments difficult to sustain.

2. Failure to provide for family

66% of MSMEs are heads of households and often the main income earner the World Bank survey reported. This simply means company registering consultancies are also dads and moms to whom children and other dependents like elderly parents usually in rural areas look up to.

If the consultancy’s revenue generating capability in encumbered  as a result of too many competitors these dependents looking up to this consultancy usually considered a family business will suffer also. Here we are talking about things like failure to pay children’s school fees and malnutrition in worst case scenarios.

3.Financial problems

According to the World Bank survey MSMEs start their businesses by sourcing money through the following ways;

a. Savings  19%

b. Money from another business 17%

c. Salary/ wages  16 %

d. Given free from family and friends  14%

e. Spouse/partner  9%

f. Loan from family and friends  7%

g. Sold assets   7%

       h. Other     11%

What this simply means is that after borrowing money the company registering consultancy should make this worthy it by generating enough revenue in order to pay back the money. If the consultancy fail to pay back the money because competition is encumbering revenue generation the consequences are disastrous. Why ? The World Bank Survey notes that MSMEs in Zimbabwe are a buffer against sliding deep into poverty.