Last updated Apr 03, 2024 and written by Tom Richardson

Registering a Company- Challenges You May Face Post-Formation

The process of registering a company is a very simple one. In fact, with Companies MadeSimple it is just 4 simple steps. It is a quick process too, normally done within 3 working hours. However running your own company is the next challenge, we’re here to help. As a company formation agent, we have helped create over 1 million companies- so let us share some of the most common challenges faced post-formation.

Common Small Problems Faced Post-formation

Certain business issues are very common, and as a result, you are much more likely to face them. It might not be possible to avoid the challenges, but you may be better prepared if you know what to expect.

Some common challenges include:

  • Over Planning- Let’s get this straight, planning is important – but only if it’s followed by doing. You might find that your business progress stalls if you spend too much time in the planning phase, this is a big problem. Planning can become a crutch, a way of procrastinating, we are all guilty of it! So try and find a balance, allow planning time – but remember that the execution of those plans is what really matters. 
  • Relying on Clients - When you first start getting clients, you are going to be a bit dependent on them. This is especially true if you have a large percentage of your income depending on a single client, this leaves you vulnerable if one or two of your repeat customers change their minds or pull back. Remember to work on customer acquisition as well as keeping your loyal clientele. Look at what some larger companies do. Such as sign-on deals, offering extended warranties to find new clients or a loyalty programme to encourage returns. 
  • Customer Service - Over-committing and under-delivering is a common problem, of course, you want to impress and retain clients but don’t make promises you can’t keep. This will lead to disappointment on both ends, make sure you are promising and committing to deliverable customer service. A bad review can be detrimental to your business. Customer service guru Ruby Newell-Legner states that “it takes 12 positive experiences to make up for 1 unresolved negative experience”.

There are many other common problems, but these are some of the more interesting ones – and ones you might not have necessarily expected. Other common problems include money management, cash flow and finding the right staff. However, you can make use of digital software to help automate certain processes. 

Deeper Larger Problems Faced Post Formation

Smaller problems may be easier to manage, or at least focus your attention on, than the broader and more nebulous ones. There are many of these, but the main three include:

  • Marketing – Keeping a customer base is a big challenge, as is gaining potential new customers. Neal Jenson, a business mentor with experience at Citigroup and Bank of America said “Figuring out the right marketing channels is key for businesses to be successful in the future” – so identifying customer wants and tailoring your marketing around is a significant challenge. However, there is a ton of free and paid resources available to help you out. Consumer groups react positively to small and medium-sized enterprises so a more personable marketing technique may suit you best. 
  • Reputation – Sometimes in business there are bad decisions made – and your reputation suffers. If people judge your company to be in the wrong, it will negatively affect this – but on the other hand, a positive impact can be made too. Your integrity and trust start from within the company, so making a proactive effort to foster a positive culture is a good idea. You might want to consider writing down your company’s ethics and promises from sustainability to impact reports. This manifesto reflects positively on your business and we have seen consumer desire to intentionally shop from socially responsible businesses. Making a positive impact is great for your employees too, where reputation is most strongly felt, it can give you an edge when recruiting and retaining great talent.
  • Competition – One of the larger challenges faced by a business is remaining competitive, or even being competitive in the first place. Neal Jenson concludes “The ease of starting a business creates a much broader level of competition” and that “will make it more difficult for businesses of all sizes to retain customers who can change their suppliers with the click of a mouse”. The challenge covers marketing as well as reputation but also counts on the focus of the business owner themselves. Keep tabs on your competitors and their business changes and functions, it can help you adjust your business or find a gap in the market within your industry. 

Generally speaking, these are much deeper and larger problems and they tend to stick around, in fact, you should regard marketing, reputation and competition as something of an ongoing challenge.


Although it is very important to be aware of challenges, the real trick lies in finding solutions. Adapt and evolve to become a better business, or you may find that you’re left without the edge you need to survive in the business world. We can advise as best as possible, but when running a business you’ll find that your experience will help you make creative solutions to these age-old problems. 

Did you find this useful? If so please be sure to comment and let us know. Make sure that you check out the rest of our blog for more useful hints and tips. Particularly the posts on ‘Company Registration’.